What is a BAS (Business Activity Statement)?

What is a BAS (Business Activity Statement)?

Ever heard your mates talking about a BAS and wondered what they were talking about?

Well, the good news is that there’s no need to hide when your BAS comes in the mail. It’s a pretty straight forward form that you’ll get the hang of very quickly.

The bad news is that in order to fill the form out correctly, you’ll need to make sure your finance admin (invoices and purchase receipts etc) are up to date. Here’s why…

What is a BAS (Business Activity Statement)?

A BAS is a reporting form sent to businesses by the Australian Taxation Office to report on:

  • GST (Goods and Services Tax)
  • PAYG (Pay As You Go) instalments
  • PAYG (Pay As You Go) Withholding Tax

and other taxation obligations.

Who gets sent a BAS?

Every business will be sent a BAS if they have registered for both:

(a) an ABN (Australian Business Number) AND

(b) GST (Goods and Services Tax).

Do I Need To Register for GST for a Lawn Mowing Business?

Why do I need to lodge a BAS for a mowing business?

If you’ve registered your mowing business for GST,  the government wants to know how much GST your mowing business has collected (from customers) and how much GST you have paid (to other businesses). The government will then deduct what you’ve paid from what you’ve collected, before sending you their GST bill.

When do I need to lodge a BAS for my mowing business?

Whether your reporting cycle is monthly or quarterly, you must always lodge your BAS by the due date on the form to avoid interest and penalties. Even if you can’t pay your bill, the ATO says you still need to lodge on time. For quarterly statements, the due dates are currently as follows:

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For monthly statements, the due date is currently on the 21st day of the following month.

If you haven’t received your BAS soon after the end of your reporting period (like we didn’t), it’s your responsibility to follow up with the Tax Office. (They’re very keen to know if you have GST money to send to them, so they’ll quickly send you a replacement!)

 

How do I lodge my BAS?

You can lodge online, via phone (if it’s a “nil” activity statement) or by mail.

How do I make the process as easy as possible?

Keep your finances/invoices/purchase receipts ordered and up to date, at least every quarter, so you can quickly answer your BAS questions when your form arrives.

Got more questions?

Just jump on the official BAS page at the Australian Tax Office site. And good luck with your BAS!

 
Disclaimer: This information is current at time of writing and is intended only as a beginner’s guide. Please always check the official ATO site for the most accurate and up to date information.

2 Comments

  1. Kyaw

    if you’re not registered for GST (as you don’t except to make 75k/yr), do you still have to report or pay tax? if so, how is it done?

    Reply

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