To lodge a BAS can be a little scary, especially if you haven’t done one before or you don’t really know what you are doing.
It’s the part of owning a business that you can’t really forget to do or leave until the last minute.
BAS submission is one of the biggest reasons our clients use Sleek as they get so much comfort and stress relief knowing we are on top of it!
Here, we’re going to delve into lodging a BAS statement with the ATO.
To get everyone on the same page, let’s explain what BAS is first.
What is BAS?
BAS is short for Business Activity Statement. Your BAS statement is a summary of all business taxes you will pay to the ATO during a specific period.
Items included in your BAS statement are:
- the amount of GST your business has collected from your sales,
- the GST you have paid on your business expenses,
- the PAYG tax you will need to pay on your wages and salaries,
- company tax instalments (called PAYG withholding tax).
It may also include other taxes payable such as fringe benefits tax instalment, luxury car tax, wine equalisation tax, fuel tax credit.
All this will depend on your business, but we’ll help you here.
When do you lodge BAS?
For most small to medium businesses, they will need to lodge BAS quarterly. The July to September, October to December, January to March and finally the April to June quarter of the financial year.
Some larger corporations (with revenues over $20 million) will need to lodge a monthly BAS statement.
Some smaller businesses will lodge BAS yearly.
But don’t worry, your Sleek accountant will advise how often your business needs to lodge BAS.
Generally speaking, the BAS is due on the 28th of the month following the completion of the quarter. For example, the July to September quarterly BAS is due on the 28th of October.
Because you are using a Sleek accountant you will be given more time to lodge (and pay! Yay!) your taxes.
Do you have to lodge BAS quarterly?
All companies are obligated to lodge BAS.
Even if your company had no business trading in the period, you still need to lodge a nil BAS.
What differs between businesses is what information you need to report and what taxes you will need to pay in the BAS. This is contained in the BAS statement – but again, we’ll help you with all this. No stress.
If you would like more and detailed information about GST, read our blog How to register for GST: Q&A, and a bit more – it has all the info you’ll need to know about GST in an easy-to-understand format.
What happens if you don’t lodge it
If you are late, you will be charged a Failure to Lodge (FTL) penalty. This is a specific rate for one penalty unit for every 28 days that your BAS is overdue.
Sleek won’t let you forget or be late, that’s exactly how we look after you and your business. Included in all our monthly accounting plans is a BAS quarterly submission. We’ll ensure the figures are accurate, get your approval, lodge and tell you how much and when to pay your tax obligations.