How to Lodge a Business Activity Statement

A Business Activity Statement (BAS) is a mandatory reporting form for businesses to report and pay various tax obligations. This statement simplifies tax compliance by consolidating different taxes into a single submission. It covers taxes like Goods and Services Tax (GST), Pay As You Go (PAYG) withholding, PAYG instalments, and Fringe Benefits Tax (FBT). Businesses registered for GST are required to lodge a BAS, including sole traders, partnerships, companies, and trusts.

Preparing for BAS Lodgement

Before completing a Business Activity Statement, understand reporting cycles and relevant tax obligations. Businesses lodge their BAS monthly, quarterly, or annually, with frequency determined by annual turnover. For example, businesses with a GST turnover of $20 million or more report monthly, while those under $20 million report quarterly. Smaller businesses with a GST turnover under $75,000 (or $150,000 for non-profit bodies) voluntarily registered for GST can elect to report annually.

The BAS encompasses several tax components. These include Goods and Services Tax (GST), reporting GST collected on sales and claiming credits for GST paid on purchases. Pay As You Go (PAYG) withholding reports tax withheld from employee wages and payments to certain contractors. PAYG instalments are prepayments towards a business’s expected annual income tax liability. Fringe Benefits Tax (FBT) and other taxes like Luxury Car Tax (LCT) or Wine Equalisation Tax (WET) may be included if applicable.

Accurate and organized financial records are important for preparing the BAS. Businesses must maintain detailed records of all income and expenses, including sales invoices, purchase receipts, bank statements, and payroll records. These records provide evidence for BAS claims and support reported figures. For example, GST-inclusive sales and purchases are needed for GST calculations, and employee wage details for PAYG withholding.

Collecting and summarizing financial data for the relevant reporting period involves gathering all tax invoices, receipts, and other source documents. Accounting software can assist by tracking transactions and categorizing them appropriately. Reconciling sales figures with bank statements and ensuring correct GST accounting methods are used are also part of this phase.

Completing Your BAS Form

Businesses can access their BAS form through online services, such as the tax authority’s online portal or myGovID. Some accounting software also offers direct integration for preparing the form.

Interpreting and correctly populating the various fields, or “labels,” on the BAS is important. For example, “G1” represents total sales, while “G11” is for GST-free sales. “1A” denotes GST on sales, and “1B” indicates GST on purchases. “W1” refers to total salary and wages. Each label requires aggregated data collected and calculated from the business’s financial records.

Integrated accounting software can significantly streamline the completion process. Many software packages can pre-fill or simplify the entry of data by linking directly to financial information recorded within the system. This automation helps reduce manual errors and ensures consistency between financial records and the BAS. Businesses should ensure their software is compatible with standard business reporting requirements for efficient data transfer.

Review and verification of all entered figures are important before lodgement. This step helps identify any discrepancies or errors that could lead to issues. Checking that all calculations are accurate and reported figures align with underlying records ensures compliance. Amounts should be rounded down to whole dollars, omitting cents, and labels left blank if they do not apply.

Submitting Your Business Activity Statement

Several methods are available for lodging the BAS. Most businesses opt for online lodgement due to convenience and security.

Lodging online through the tax authority’s online services is common. This involves accessing the secure portal, often requiring a digital identity like myGovID. Within the online system, businesses can select the relevant BAS, input prepared information, then review and submit. This method may also offer an extended due date for lodgement.

Another option is to engage a registered tax or BAS agent. These professionals can prepare and lodge the BAS on behalf of the business. Using an agent may provide additional time to lodge and pay, and they can also assist with any correspondence or issues that arise with the tax authority. Agents are authorized to use secure online services for agents or the practitioner lodgement service.

Some accounting software packages offer direct electronic lodgement capabilities. This allows businesses to submit their BAS directly from within their accounting system, provided the software is Standard Business Reporting (SBR)-enabled. While less common, lodging by mail is also an option, using a pre-addressed envelope provided with the BAS form. This method has slower processing times.

After successful submission, a confirmation message with a receipt number is provided. This receipt number serves as proof of lodgement and should be retained. Even if there is nothing to report, a “nil” BAS must still be lodged by the due date.

Managing Post-Lodgement Requirements

Payment obligations align with or closely follow lodgement dates. Various payment methods are available.

Businesses can pay electronically through options like BPAY, direct debit from a bank account, or credit/debit card via online services. Electronic funds transfer (EFT) directly from a bank account is also available. Payments can also be made in person at designated post offices using cash, EFTPOS, or cheque, requiring an official barcode. If a business faces financial difficulty, payment plans can be arranged with the tax authority, allowing for instalments rather than a lump sum payment.

If the BAS results in a refund or credit, the tax authority processes this amount. Up-to-date lodgements are important for timely refunds. Businesses should ensure their financial institution details are current for smooth processing of refunds.

Maintaining records of the lodged BAS and payment confirmations is crucial for compliance and future reference. Businesses should keep digital or physical copies of the submitted statements and any payment receipts. These records support the reported figures in case of an audit or inquiry.

Should an error be discovered after lodgement, a BAS can be amended. Minor mistakes, like clerical errors or incorrect classification of sales or purchases, can be corrected on the next BAS. For more significant errors or if the mistake cannot be corrected on a subsequent statement, a revised BAS may need to be lodged. This can be done through online services or by engaging a tax agent.