Tuesday, 2 Apr 2024
Business Activity Statement (BAS) is an obligatory report submission to be done by all businesses registered for GST in Australia. It must be lodged with the Australian Taxation Office (ATO) along with the payment of GST, PAYG instalments, PAYG withholding tax and other taxes. It can be lodged online, by mail or with the help of a BAS agent or a registered tax agent on behalf of the business owner. The GST payment and report lodgement can be done monthly, quarterly and annually, depending on the GST turnover.
Most business owners do not have the time to get into the nitty-gritty of the reporting and payment process because of their tight schedules. Thus, they rely on a BAS agent to assist with the lodgement and ensure compliance with tax obligations. Melbourne bookkeepers can double up as BAS agents if they are registered and can represent the business owner while dealing with the ATO. Let us help you understand everything about BAS agents and why small business owners need their assistance. It will help you file taxes on time and follow the tax regulations without fail.
The BAS agent is a qualified and registered professional who assists businesses with BAS-related regulations. Businesses receive their BAS and lodgement due date when registering for Australian Business Number and GST. The Tax Practitioners Board licenses agents to provide BAS services. If the agent is not registered, he can incur a fine of $45,435 in Victoria.
Many professional and expert Bookkeepers Melbourne register as BAS agents to help their clients with GST and PAYG. However, if a business hires a BAS agent who is not a bookkeeper, the agent cannot prepare income tax returns for them. The BAS agents cannot offer financial advice to the entrepreneurs or conduct audits.
A BAS agent has specialised duties, including managing GST and providing advice to the entrepreneur. They also supervise payroll management and compliance with superannuation and taxation laws related to employee payments. Their main responsibility is the preparation and lodgement of BAS and submitting the report of PAYG withholding.
They are responsible for representing the business while dealing with the ATO. The agents review and update their clients’ details saved by the ATO. They can either use online services for agents or Standard Business Reporting (SBR) and the practitioner lodgement Service (PLS). They pay the BAS on time to avoid penalties and ensure the activity statements are accurate. BAS services include GST reporting, Fuel Tax Credits, Fringe Benefits Tax and PAYG Withholding.
A BAS agent must be over 18 years old and have completed Certificate IV in Financial Services in bookkeeping or accounting. Many bookkeepers in Melbourne register as BAS agents to help their clients with BAS services. They must also complete a Tax Practitioners Board (TPB) approved GST or BAS taxation principles course.
They can become registered agents with 1,400 hours of relevant industry experience in the past four years. They must also have professional indemnity insurance for their protection. They should follow the code of professional conduct that requires the agent to be honest, ethical, unbiased and maintain confidentiality of the client’s financial information.
Bookkeepers have many more responsibilities in a small business. They must record all transactions and oversee accounts payable and receivable. They are involved in inventory management, bank reconciliation, filing income tax, preparing financial reports and assisting the tax agent.
On the other hand, a BAS agent has limited duties related to BAS services. These agents differ from tax agents who offer income tax services and advice. BAS agents work under the regulatory framework of the Tax Agent Services Act 2009 (TASA). They can assist bookkeepers in tax-related matters of the business.
Small businesses do not have many employees. They prefer professionals who can multi-task and provide various services. Thus, they hire bookkeepers in Melbourne who are registered BAS agents to reduce the cost of hiring two workers. They need a BAS agent to save time and ensure compliance.
Since registered agents are working on the lodgement of BAS, the entrepreneurs can relax and stay stress-free about remembering the due date and avoiding penalties. They can also help claim deductions and bring the taxes down for the business, which leads to a better cash flow. They are trained and up-to-date about the latest tax regulations, making them the best candidates for the job.
Many businesses make BAS mistakes that make them pay more than required to the ATO. The BAS agent ensures that these errors do not occur and claims GST credits, which help to decrease the amount of GST to be paid for the sale of goods and services. Another way to reduce BAS payment is to pay GST with cash if the business’s turnover is below $10 million.
A common mistake that can occur while lodging BAS is adding GST for products that are exempted from it. For example, food and health services are GST-exempt. Thus, if the business includes them they will unnecessarily incur losses. A BAS agent ensures this does not happen.
BAS agents are necessary for small business owners because they do not have the time to lodge the paperwork themselves regularly. Agents do the calculations correctly and offer valuable insights and peace of mind.
