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BAS Statements

What is the Business Activity Statement?

The Business Activity Statement is a form that businesses will need to complete and return to the ATO as a tax return in relation to the following taxes:

·         Goods and Services Tax (“GST”);

·         Wine Equalisation Tax (“WET”);

·         Luxury Car Tax (“LCT”);

·         Pay-As-You-Go (“PAYG”); and

·         Fringe Benefits Tax (“FBT”).

Any entity that has any tax obligations and/or entitlements under any of these taxes will be required to complete and lodge a BAS.

BAS will replace a variety of forms and returns that businesses are required to lodge, but will not replace an entity’s income tax return.  This must still be completed and lodged with the ATO.

 What is the format of the BAS?

·         The BAS is a two-page document.  The first page is a summary page – this shows the amounts payable/receivable in respect of each of the taxes covered by the BAS. 

·         The second page is a calculation sheet that helps determine the net amount of GST payable or receivable. The net amount from this page is transferred to the summary sheet.

 How to get a copy of the BAS

·         The Australian Taxation Office will send out copies of the BAS to each entity that is required to lodge a BAS.

·         Each activity statement will contain information that is personalised to each individual business. 

·         Each statement will specify the date when it must be lodged by, and the tax period that it covers (eg 1 July 2000 to 30 September 2000).

  When to lodge your BAS?

·         In general, a BAS must be lodged with the ATO within 21 days after the end of an entity’s tax period.

·         The length of an entity’s tax period will be either one month or three months in duration.

One monthly tax periods:

An entity will have monthly tax periods if:

·         The annual turnover of the entity is greater than $20 million;

·         The entity will be carrying on a business for less than three months;

·         The entity has a history of not complying with its tax obligations (eg continually paying late); or

·         The entity has a substituted accounting period (“SAP”)* see note below. 

A substituted accounting period means that the entity’s financial year does not start on 1 July and end on 30 June.  Instead it may start on 1 January and end on 31 December, or run from 1 April to 31 March.

·         If an entity falls within one of these categories, it must use a monthly tax period.  It does not have a choice of using quarterly tax periods.

·         Where monthly tax periods are used, each period will be a calendar month.   The entity’s BAS must be lodged on the 21^st day of each month (eg. a BAS statement must be lodged on 21 February for the tax period 1 January to 31 January). 

·         Monthly remitters will only have to complete information relating to quarterly income tax instalments and fringe benefits tax instalments in every third BAS. 

Quarterly tax periods:

·         If an entity is not required to use monthly tax periods, it will generally have quarterly tax periods. However, the entity has the option of having monthly tax periods.  If this option is exercised, the entity must use monthly tax periods for a minimum of twelve months.

·         The period covered by each quarterly tax period and the date by which a BAS must be lodged for that tax period, are outlined in the following table:

The ATO has announced that businesses who lodge quarterly tax periods through their tax agent will be granted an extension of the date by which a BAS must be lodged. 

How to lodge a BAS

In general, a BAS may be lodged using one of three options:

·         Complete a paper version of the BAS and send it via ordinary mail to the ATO.

·         Get an accountant or tax agent to complete the BAS. The BAS can be lodged via the Electronic Lodgement System (“ELS”) .

·         Complete and lodge the BAS electronically via the internet at the ATO’s website, http://taxreform.ato.gov.au  This electronic option will be available 24 hours a day, 7 days a week.  To elect to lodge electronically, contact the ATO to obtain an election form.

Any entity with an annual turnover of $20 million or more must lodge electronically.

Paying GST & Receiving Refunds

What happens once a Business Activity Statement has been completed?

·         Once an entity has completed their BAS, they will calculate a net amount that they are either owed by (eg a refund), or that they owe to (eg GST payable) the Australian Taxation Office.

How do I receive refunds?

·         Any amount that is owed to a business will be paid by the ATO within 14 days of the date of lodging a BAS.

·         Interest will be payable by the ATO in cases where a refund takes longer than 14 days.

·         Refunds will be paid directly into a bank account nominated by the business.  This bank account MUST be in Australia. Only in extremely rare instances will the ATO pay a refund by some other method of payment (such as by cheque).

How is GST paid?

·         Any amount that is owed to the ATO by a business must be sent off to the ATO at the time when the entity’s BAS is lodged. 

·         Payment can be made in a variety of ways, including electronically (via direct credit, direct debit or BPAY), by cash or cheque at any post office, or by mailing payment to the ATO.

Note: any entity that is required to lodge their BAS electronically must also pay any amount owing electronically.

Types of records required to complete a BAS

Examples of records needed to help complete a BAS include the following:

·         Cash register tapes;

·         Records of cash sales;

·         Cash books;

·         Petty cash books;

·         Invoices issued and received;

·         Tax invoices issued and received;

·         Receipts issued and received;

·         Adjustment notes issued and received;

·         Bank, building society and credit union deposit books and statements;

·         Term deposit investments;

·         Investment distributions;

·         Loan/lease documentation;

·         Creditors and debtors lists;

·         Stock take lists;

·         Details of good taken for private use;

·         Vehicle log books or records of vehicle claims; and

·         Details of payments made to other entities or persons from which you are required to withhold an amount of tax.

Businesses must keep adequate records to explain all their business transactions.  It is an offence not to keep adequate records.