Australian Business Activity Statements

If you have a registered business entity in Australia, then you are required to report its tax obligations through a Business Activity Statement (BAS) and must be submitted to the Australian Taxation Office (ATO).

Before the end of each reporting period, the ATO will send to each registered entity a BAS which is tailored to their size and type of economic activity. The BAS Business Activity Statement, which can be partially pre-completed, may be delivered back to the ATO online, sent in paper form, or filed via a registered tax agent.

What the BAS Business Activity Statement reports

Through the BAS businesses must report their financial obligations in respect of the following taxes:

• GST (Goods and Services Tax);
• PAYGWC (Pay-as-You-Go Withholding Tax);
• PAYGI (Pay-as-You Go Instalments);
• FBT (Fringe Benefits Tax).

And, where applicable:

• WET (wine equalisation tax); and
• LCT (luxury car tax).

Instalment Activity Statement

Related to the BAS is the Instalment Activity Statement (IAS). This is used by taxpayers that have not registered for Goods and Services Tax, but have other tax obligations. It is also used by businesses that prepare a BAS on a quarterly basis, but are required to pay PAYG withholding tax monthly.

Frequency

BAS normally must be submitted quarterly, but for some types of business this may be required to report their obligations on a more regular basis.

Preparation

Whilst businesses can prepare and submit their BAS manually, via the ATO website, or through the Standard Business Reporting program which aims to reduce the regulatory burden on businesses you will find as a business owner it may be more beneficial in having a bookkeeper complete these returns so you can focus more on your business. There are also tax software programs which are available that have been specialised designed to facilitate the completion of the BAS.

Why Hire an Accountant or a Bookkeeper?

Whilst businesses can always complete the BAS themselves, unless they have an in-house accountant, or somebody financially savvy to assist them with the preparation, they should consider hiring an outside bookkeeper or accountant to assist them with the preparation and filing.

The BAS can be complex to complete for the uninitiated and it is easy to make errors, such as including incorrect figures, failing to properly report taxes, or understating tax obligations. This can result in the ATO requiring the BAS to be re-submitted or, in the worst case scenario, charging the business for under-reported tax.

How to Hire an Australian Accountant or Bookkeeper

There are many bookkeepers and accountants in Australia, so you are spoiled for choice. You could contact one directly, or, alternatively contact trusted business partners and clients to see if they have anybody they would recommend.

If you are considering hiring somebody unknown to you, ask for references or referrals from some of their other clients.  Also try and find somebody who uses the same accounting software as you do, so that they are able to access and share the financial data for your business.

A bookkeeper may be sufficient if you are only a small business, and your reporting requirements through the BAS are relatively limited. However, if your business is more complicated, then you should consider hiring a registered accountant instead.

A qualified accountant, whilst they will generally cost more than a bookkeeper, can not only complete your BAS for you, but they can offer a broader range of services such as tax advice and reporting, corporate reporting and compliance, business establishment advice, and advice on broader issues of financial management.

Get in touch with our team of super-accountants.

We’ll introduce you to your goal-digging Bookkeepers to help you get the job done!