Doing business in any country requires compliance with the regulations and laws of the land. In Australia, business owners need to submit a form called a business activity statement or BAS. These forms report your tax obligations, pay as you go information, and other details to the Australian Taxation Office. If you are new to doing business in Australia, it is important to understand how these BAS forms work.
When you know how to file your BAS, you will be able to keep your business in compliance with national laws. You will be able to keep operating without fear of penalties or fines. You will also be able to receive accurate and timely updates on your goods and services tax and pay as you go tax information and payments.
Let’s look at what a business activity statement is and how you can lodge your BAS if you are an Australian business owner.
Four Ways To Lodge Your BAS
There are four easy ways that you can lodge your BAS with the Australian Taxation Office. You can opt to file your BAS using your accounting software package. For this, you will need to make sure that your software provider is compatible with BAS filing in Australia.
As a sole trader, you also have the option of lodging your BAS through your myGov account. Similarly, you can choose to use the Australian Taxation Office’s online business portal to lodge your BAS.
Finally, you can have a third-party lodge your BAS on your behalf. This third-party will need to be a registered tax or BAS agent. Most bookkeepers and accountants in Australia will be able to handle this for you.
Important BAS Dates
There are some important dates that you need to keep in mind when it comes to lodging your BAS statements. How frequently you will need to submit these forms, for example, depends on the size of your business. Knowing these thresholds will help you stay in compliance with tax legislation in Australia.
At the higher end, if your annual turnover exceeds twenty million dollars, then you will need to lodge your BAS monthly. With less than twenty million dollars in turnover, however, you will only need to file these forms quarterly. The quarterly dates fall on the 28th day of October, February, April, and July.
In some cases, businesses with an annual turnover of fewer than ten million dollars may be able to lodge business activity statements only annually. However, the GST that you are required to pay under Australian tax law will still need to be paid quarterly.
When your business pulls in less than seventy-five thousand dollars annually, you are able to only file your BAS annually.
When You Cannot Pay On Time
There are many reasons why you might not be able to file your BAS on time. However, if this is the case, it is important to get in touch with the Australian Taxation Office as soon as possible. There are penalties for not filing your BAS on time, so it is important to do your best to lodge these forms as early as you can.
If you cannot pay the taxes specified in your BAS to the Australian Taxation Office, you may be able to work out a payment plan based on what you can afford to pay. In these cases, however, a general interest charge will be added to outstanding payments.
File Your BAS With Ease
Lodging business activity statements are part of doing business in Australia. Make sure to keep yourself informed of changes and developments that may be made to lodging BAS in the future.