Thursday, 2 May 2024
A business activity statement (BAS) is a form filled out by all the GST registered businesses in Australia to provide details of the GST activity of the entity in a given period. The size of the business determines the number of times the entity must fill out the form. It has to be submitted to the Australian Taxation Office (ATO), which utilises the information to identify the GST refund for the business. Entrepreneurs receive the form from ATO when they register for the Australian Business Number (ABN) and GST.
The ATO also informs the time to lodge BAS, and the payment must be made by the specified date with the help of a professional bookkeeper in Melbourne. Entrepreneurs can lodge BAS online and get two weeks times to pay it with a faster refund process. Some accounting software includes the Standard Business Reporting feature, which can be used for BAS lodgement. Hiring a BAS agent can also help delegating the responsibility to an expert. However, if you plan to do it on your own, you must know what is included in a BAS statement. Let us help you by providing the information below.
Entrepreneurs must collect all the information needed to fill out the BAS form, and the numbers must be verified before submission by experienced Melbourne bookkeepers. The payment must be made online or with the help of an agent by the due date using BPAY, credit card, or other online transaction options. Here is what must be included in the BAS statement.
The Goods and Services Tax (GST) is a value-added tax paid by customers when buying products and services and remitted to the government by businesses. The tax is included in the amount mentioned in the invoices provided to the customers and is applicable to specific goods and services. GST is a consolidated tax that covers sales tax, excise duty, etc. Businesses can claim credits for GST added to the price of the products and services they purchase for their operations.
Businesses offer fringe benefits to employees in addition to salaries and help increase their satisfaction levels. Businesses provide these additional benefits to attract and retain talented workers. These include a vehicle for private use or reimbursement of personal expenses. However, they have to pay taxes for these benefits they provide to the employees. The taxes are calculated on the taxable value of the benefits and the business must register for FBT.
Businesses with employees in Australia must to withhold a specific amount of tax from their salaries. The withheld amount is submitted to the ATO on behalf of the employees. Businesses must also withhold this tax from payments made to other workers who have signed under-hire agreements. It must be included in the PAYG tax withheld section of the BAS.
The Luxury Car Tax (LCT) is the tax imposed on luxury cars sold or imported by businesses with a GST-inclusive value that goes beyond the LCT threshold. The LCT rate is 33% and is paid by entities registered for it. Usually, it is paid by car dealers selling premium vehicles or a public institution that wishes to display the model.
PAYG instalments are paid by businesses that have reached a threshold to pay the income tax in instalments and reduce the burden of payments. It has to be paid quarterly in most cases to save the hassle of paying a large amount upfront. The ATO puts the business in the PAYG instalment system after it lodges the income tax return and showcases a higher income than the threshold. Entrepreneurs who expect to generate an income higher than the threshold can voluntarily become a part of the system to avoid paying a large tax bill. Your bookkeeper in Melbourne can assist you in this process.
Businesses involved in selling, making and importing wine must mention the Wine Equalisation Tax (WET) in the BAS. The WET rate is 29% of the wine’s wholesale value and must be paid by entities registered for GST. Wholesalers can claim it from the ATO with the help of bookkeepers in Melbourne, but wine retailers cannot.
Fuel Tax Credits offers the business credit for the fuel tax, which is a part of the fuel price used for operations. The fuel tax rates are altered frequently and must be carefully checked before filling out the BAS form. Businesses can claim fuel tax credits if they are registered for GST when buying fuel for business activities.
Businesses must maintain up-to-date records of all sales, expenses and costs to lodge the BAS statement correctly. They must reconcile the figures with bank statements and use the right accounting method to ensure accuracy. In addition, they must have the tax invoices and GST records for the past five years as per the regulations.
