What is a BAS? Business Activity Statements Explained.
Updated: Dec 23, 2020
Most small businesses and some individuals will need to submit a BAS document.
Business Activity Statement
Small business with a turnover of $75,000 or over are required to register for GST and submit a Business Activity Statement either Monthly, Quarterly or Annually. For small business that have a turnover of less than $75,000 can voluntarily register for GST ad PAYG Withholding.
If you are a small business that does not need to submit a GST report and you have employees you will need to submit a PAYG Withholding form Either Monthly or Quarterly.
PAYG Instalments are different to the tax you withhold from your employees.
PAYG Instalments is the estimated tax that the ATO believes that you will need to pay in the following financial year. If you had a tax bill this year then next year you will need to submit a PAYG Instalments report – the ATO will automatically enroll you into PAYG Instalments. If you want to adjust the report - you will need to submit a variance within 28 days of the report opening date.
Individuals you have a tax liability will be enrolled into PAYG Instalments. Items such as small business income, Rental Property Income, Capital Gains, Director Fees, Unfranked Dividends can cause a shortfall in tax when added to your PAYG income that has been taxed.
If the event that caused a shortfall is not a regular occurrence such as -Sale of a property – then you can request to have the PAYG Instalments reduced to Nil.
There a times where the year ahead is not going to be as good as the last and vice versa. You can adjust your PAYG Instalments up and down. This helps to take the burden off at tax time.
We are Tax Agents that offer an affordable BAS services that are efficient and compliant with the ATO’s standards.
We keep you up to date and make sure your reports are submitted on time
If you feel as though the PAYG Instalments that you are paying is too much then get in contact with us and we can assess whether or not it can be adjusted