Do You Need to Lodge a BAS as Small Business Owner?

Whether you are a current or aspiring business owner, the question of how much tax your small business needs to pay may cause you many sleepless nights. The Business Activity Statement (BAS) is oftentimes at the center of concerns. We are here to give you peace of mind and answer all the questions our small business clients ask us on a frequent base, including who needs to register for BAS, how to lo lodge and benefit from it.

Role of BAS tax return for Small Business Growth

The Business Activity Statement is a record that is completed upon lodging a tax return and then sent to the Australian Taxation Office.

But here is the important clue: You will only be required to lodge a BAS when you have registered for the Goods and Services Tax (GST). And you are only required to register for GST, when your business’ expected gross income (excluding GST of 10%) is equal to or more than $75,000.

How to Lodge Business Activity Statement

The ATO makes the process of lodging your BAS relatively painless, but there is still some work to be done. The good news: You can lodge your BAS online in a few simple steps. You can either submit the statement using your online accounting software, through your myGov account (only for Sole Traders), via the ATO’s online business portal or by having a registered tax or BAS agent Perth. Our friendly team of expert accountants and bookkeepers can help you with the latter.

What Information do You Need to Prepare BAS?

Here are the basic steps to preparing and lodging a BAS with the ATO:

Lodging your BAS is only then a daunting task if you have been slacking with the documentation of your business’ income and expenses over the previous months.

Start by taking a close look at your financial records and making sure that all of your bank statements match the information you’re passing on to the ATO. This also includes any purchases, cash expenses, and relevant outstanding funds.

Make it a habit to collect receipts and invoices for business transactions as well as receipts and invoices for any cash transactions. Better even, no matter how small your small business: Use separate bank accounts for private and business purposes - Even if you’re a "one (wo)man show”.

You’ll also need to keep track of how much GST you’re collecting on sales, and how much you have spent on purchases. You won’t need to submit tax invoices when you lodge your BAS, but you should have the ready as the ATO may ask to see them later.

Because your BAS may also be used for other tax reasons, you will need to provide extra information about your business, its income, and any employees you may have. Learn more on the ATO business activity statements page.

If you're using Xero, an online accounting software, you should run the Bank Reconciliation Summary, to check if your actual bank balance and the balance of the bank account in Xero match. If your balances don't match, run the report to check for missing, deleted or duplicated transactions.

Once you have completed the BAS, keep your records up to date with new information. You can choose to mail a hard copy to the ATO or file your BAS online through the ATO portal, or to make your life easier: Have your tax agent perth lodge it for you.

Last but not least: Make sure you pay what you owe on time or alternatively, make arrangements with the ATO for a payment plan.

Due Dates of BAS to Keep in Mind

You should take lodging and paying your tax in a timely manner very seriously. When and how to pay your tax, is displayed on your business activity statement. Should the due date fall on a weekend or public holiday, you have until the next business day to lodge and pay. We recommend setting calendar reminders on your phone for lodgment key dates, using the ATO app. A registered tax or BAS agent can help you lodge your activity statements.

Tip: If you lodge online, you’re eligible for an extra two weeks to lodge and pay your quarterly BAS.

GST reporting and payment cycles

Quarterly: For GST turnovers under $20 million.
Monthly: For GST turnover of $20 million or more.
Annually: Voluntarily registration with a GST turnover under $75,000 or $150,000 for not-for-profit bodies.