If your business is registered for GST and you need to lodge your BAS returns (either monthly, quarterly or annually), we can assist to take the burden away from you.
We give you practical advice and solutions to assist with your record keeping requirements as well as attending to the lodgement itself. Keeping you on the right side of the ATO keeps your business life simpler and leaves you with one less thing to worry about, allowing you to focus on the business itself.
If you are new to business, need a refresher, or just are not sure, then read on for some simple definitions and things to look out for.
Contact us via our Contact Page if you have a specific query or if you want a quote.
Definitions and general information:
- Goods and Services Tax (“GST”) is a “value added tax”. Currently the rate is 10% for most goods and services (exemptions do apply). A business must be registered for GST if its annual revenue is over $75,000. A business can elect to be registered for GST if its annual revenue is under $75,000.
- A Business Activity Statement (“BAS”) is a statement submitted to the Australian Taxation Office (“ATO”) by a business that is registered for GST. The statement reports details of various types of taxes that the business may be liable for.
- A BAS can be issued by the ATO either monthly, quarterly or annually. There are specific due dates. If you are late with lodgement, then there can be financial penalties. How often you lodge your BAS is largely related to the size of your business, with quarterly lodgements being the most common.
- An Instalment Activity Statement (“IAS”) is a statement submitted to the ATO by a taxpayer that is (generally) not registered for GST. A GST registered business that lodges quarterly BAS’s, but also needs to report PAYG Instalments, PAYG withholding, and/or FBT Instalments on a monthly basis, would do so via an IAS.
- As with BAS’s, IAS’s have specific due dates. If you are late with lodgement, then there can be financial penalties.
- Pay As You Go (“PAYG”), as the name suggests, is a system where you pay your tax throughout the year as you earn income. This way, you are not left in a position where you need to fund a large tax bill at the end of the year. There are specific circumstances where the ATO will register you for PAYG. PAYG instalments are generally sent by the ATO in the form of an IAS, rather than a BAS.
- Fringe Benefits Tax (“FBT”) is a tax on employers who provide certain benefits to employees, their families or other associates.
- Luxury Car Tax (“LCT”) is a tax paid by businesses that sell or import luxury cars (dealers), and individuals who import luxury cars. LCT is a 33% tax on cars with value (including GST) above the LCT threshold. This tax only applies to the portion of the car’s value that is above the threshold, not the total value of the car.
- Wine Equalisation Tax (“WET”) is a tax paid by GST registered businesses that manufacture, wholesale or import wine into Australia. WET is a 29% tax on the wholesale price of the wine.
- Fuel Tax Credits are a credit to GST registered and Fuel Tax Credit registered businesses. The credit is for the fuel tax (excise or customs duty) that is included in the price of fuel used in machinery, plant, equipment and heavy vehicles for business purposes.
Tips and hints:
- Lodge on time to avoid penalties.
- Pay any amount payable on time too.
- Do it yourself if you can. It is not hard, but if you are not sure, get help. Getting it wrong can be costly.
- Keep good records. Having everything sorted and in order will make your job (and ours) easier. As with most things, doing your record keeping methodically and regularly is the easiest way to stay on top of it.
- If you want Astrum Consultants to assist or lodge on your behalf, contact us early. We do not want you to face unnecessary penalties.
- You can lodge your form by mail, phone, online or through a registered tax agent (like us) or BAS agent.
- Even if there is nothing to report, you still need to lodge.
- Keep copies of your lodgements.
If you do decide to get Astrum Consultants to help you, we will send you our Information Checklist to make sure you get all the information to us.
Contact us via our Contact Page if you have any questions.
Liability limited by a Scheme approved under Professional Standards Legislation.