How to Fill Out a Business Activity Statement (BAS)

A Business Activity Statement (BAS) is a standardized form used by businesses to report and pay various tax obligations to the tax authority. This statement consolidates reporting for Goods and Services Tax (GST), Pay As You Go (PAYG) withholding, PAYG income tax instalments, and Fringe Benefits Tax (FBT) instalments. The BAS helps businesses fulfill their regular tax commitments. Its purpose is to streamline the reporting process for different taxes into a single, comprehensive declaration.

Gathering Necessary Information

Before completing a Business Activity Statement, gather all relevant financial information. This preparatory phase involves compiling data from various business records to accurately report income and expenses. Organized record-keeping simplifies this process.

For Goods and Services Tax (GST) reporting, specific figures are required. You will need to determine your total sales, including GST, which corresponds to label G1. This figure is derived from your sales invoices or point-of-sale system reports. Separately, identify any export sales (G2) and other GST-free sales (G3), which represent income from goods or services not subject to GST.

Regarding purchases, you need to differentiate between capital purchases (G10) and non-capital purchases (G11). Capital purchases refer to significant asset acquisitions, such as vehicles or machinery, while non-capital purchases encompass everyday operational expenses like office supplies or utilities. Both G10 and G11 should include any GST paid on these acquisitions. From these figures, you will calculate the total GST collected (1A) from your sales and the total GST paid (1B) on your purchases.

For Pay As You Go (PAYG) withholding, businesses must report the total gross salary, wages, and other payments made to employees, which is designated as W1. This amount includes superannuation contributions, allowances, and other taxable benefits. Alongside this, you must calculate the total amount withheld from these payments, known as W2, which represents the tax deducted from employee earnings. Payroll records and reports are the sources for these figures.

Other tax obligations may also require reporting on the BAS, such as PAYG income tax instalments and Fringe Benefits Tax (FBT) instalments. For PAYG income tax instalments, the tax authority provides a pre-determined amount based on previous income. Fringe Benefits Tax instalments are calculated based on an estimate of the FBT liability for the period.

Access the BAS form through the tax authority’s online services portal for businesses. Alternatively, a registered tax agent can access and complete the BAS on your behalf through their dedicated portal. Identify your specific reporting cycle (monthly, quarterly, or annually), as this dictates due dates for lodgment and payment. This information is provided upon business registration and is accessible through your online tax account.

Completing Each Section of the BAS

Filling out the Business Activity Statement requires careful calculation and accurate entry of figures. Each label on the BAS corresponds to a specific financial component of your business operations. Having the pre-gathered information from your accounting records simplifies this process.

Begin by addressing the Goods and Services Tax (GST) section. For G1, “Total sales,” sum all sales made during the reporting period, including the GST component. This figure represents the gross value of all goods and services supplied. Next, for G2, “Export sales,” enter the value of goods and services exported from the country, which are generally GST-free.

For G3, “Other GST-free sales,” include the value of all other sales not subject to GST. These figures are derived from your sales invoices and accounting system classifications. Moving to purchases, G10, “Capital purchases,” requires the total value of assets purchased for your business, including any GST paid on them.

Similarly, G11, “Non-capital purchases,” represents the total value of all other business expenses incurred, again including any GST paid. These purchase figures are compiled from your expense records and supplier invoices. After inputting these gross figures, calculate the GST collected from your sales, which is 1/11th of your GST-inclusive sales, and enter this at 1A.

Then, calculate the GST paid on your purchases, which is 1/11th of your GST-inclusive purchases (G10 + G11), and enter this at 1B. The net GST position is determined by subtracting 1B from 1A. A positive result indicates GST payable to the tax authority, while a negative result indicates a GST refund due to your business.

Proceed to the Pay As You Go (PAYG) withholding section. W1, “Total salary, wages, and other payments,” should reflect the gross amount paid to employees before any deductions. This includes all taxable components such as salaries, wages, allowances, and superannuation contributions. W2, “Amount withheld from payments shown at W1,” is the total tax amount deducted from these employee payments.

These figures are generated from your payroll system’s summary reports for the reporting period. Ensure all deductions have been accurately recorded and summed. Finally, review all entered figures for accuracy and completeness. The BAS will automatically calculate the total amount due or refundable based on the net GST, PAYG withholding, and any other applicable tax instalments. This final calculation provides the overall financial obligation or credit for the reporting period.

Submitting Your BAS and Payment

Once all sections of the Business Activity Statement have been completed and verified, the final steps involve lodgment and payment. Several methods are available for submitting your BAS. The common method is online lodgment through the tax authority’s online services portal for businesses.

For online submission, access the portal using your secure digital identity. Navigate to the BAS section, where your pre-filled or partially completed statement will be available. Review all entered figures to confirm their accuracy before proceeding. The online system provides a summary of your obligations, allowing for a final check of the net amount payable or refundable.

After reviewing, you will be required to confirm a declaration stating that the information provided is true and accurate. Upon confirmation, the BAS can be electronically submitted. The system provides an immediate confirmation receipt, which should be saved for your records. This online method offers convenience, speed, and real-time validation checks.

Alternatively, a registered tax agent can lodge the BAS on your behalf. Businesses engage tax agents, who have access to a dedicated online portal for lodgment. While less common, it is also possible to lodge a paper BAS by mail, although this method is slower and may not provide immediate confirmation of receipt.

Regarding payment, if an amount is due, several options are available. Direct debit allows the tax authority to automatically withdraw funds from your nominated bank account on the due date. Other electronic payment methods include BPAY, which requires your financial institution’s online or phone banking service, and credit card payments, though these may incur a service fee.

If your business faces temporary financial difficulties, it may be possible to arrange a payment plan with the tax authority. This involves contacting them before the due date to negotiate an installment arrangement. Regardless of the payment method chosen, always ensure that funds are available in your account by the due date to avoid penalties or interest charges. Maintaining clear records of your submitted BAS and all associated payments is important for your records.