What is a business activity statement (BAS)?
When your business is registered for GST, ATO will send you a BAS form to report and pay
GST, PAYG withholding, PAYG income tax installments and other taxes. The form format varies depending on the required taxes.
Cash or Accrual reporting
When you register for GST you select one of the two methods for reporting.
We’ll talk about cash basis reporting since this is the most used method for small businesses with turnover of less than $10 million. It means you record GST on BAS when a payment is made in sales and in purchases. Not when an invoice is issued or a bill is received. Reporting this way helps you better manage your cash flow, you know exactly what has come in and out of the bank account.
What are the components of a business activity statement?
Below shows what a BAS looks like, taken from accounting software Xero.
Business activity statements due dates.
The ATO will send you the activity statement with due date on the form.
Typically your reporting period is one of the following.
Quarterly – if you’ve a turnover of less than $20 million per year. Unless you’re told to report monthly.
Annually – if you registered for GST voluntarily and a turnover of less than $75,000 per year
If you can’t make the payment, lodge your BAS on time anyway then make late payment with interest or request an extension.
Otherwise, you’ll cop a fine, they’re more lenient when more informed.
You must lodge your BAS online, by mail or phone even if you have nothing to report for the period.