tmsfinancial logo
Schedule Consultation

BAS Due Dates

For Meeting Tax Obligations on
Time and Avoiding Penalties.
BAS Lodgement Service
In Australia, businesses that are registered for Goods and Services Tax (GST) are required to report and pay their tax obligations using a Business Activity Statement (BAS). BAS due dates are crucial for meeting tax obligations on time and avoiding penalties.

It’s important for businesses to understand the connection between being registered for GST and BAS lodgement. If a business has a GST turnover of $75,000 or more, or $150,000 or more for non-profit organizations, they are required to register for GST. This means that they must charge GST on their goods and services, and report and pay GST to the ATO via their BAS.

Importance of Meeting BAS Obligations and Deadlines

Meeting BAS (Business Activity Statement) obligations and deadlines is crucial for any business owner or entity that is registered for GST (Goods and Services Tax) in Australia. Failure to meet these obligations can result in penalties and fines, and can also cause disruptions to the normal functioning of a business. In this section, we will discuss the importance of meeting BAS obligations and deadlines, the consequences of late or incorrect lodgement and payment, and some tips for staying organized and meeting these obligations.

Consequences of late or incorrect lodgement and payment:

There are several consequences that can rise from later or incorrect lodgement of BAS. These consequences can include

PENALTIES

Late lodgement and payment of BAS can result in penalties from the Australian Taxation Office (ATO). These penalties can range from hundreds to thousands of dollars, depending on the severity of the late lodgement or payment.

interest CHARGES

Late payment of BAS can also result in interest charges, which can accumulate over time and add to the total amount owed.

Audit risk

Late or incorrect BAS lodgement can increase the risk of an ATO audit, which can be a time-consuming and costly process.

Cash flow problems

Late payment of BAS can cause cash flow problems for a business, which can impact its ability to pay suppliers, employees, and other expenses.

Benefits of meeting BAS obligations and deadlines:

Meeting BAS obligations and deadlines can bring several benefits to a business. The benefits can include

AVOIDING PENALTIES

By meeting BAS obligations and deadlines, a small business also can avoid penalties and interest charges from the ATO.

Building trust

Meeting BAS obligations and deadlines can help build trust with suppliers, customers, and the ATO, which can lead to positive long-term business relationships.

IMPROving cash flow

By paying BAS on time, a business can improve its cash flow and avoid cash flow problems.

simplify tax process

Meeting BAS obligations and deadlines can help simplify tax processes and reduce the risk of errors and audits.

Tips for staying organized and meeting BAS obligations

KEEP ACCURATE RECORDS

Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings.

USE TECHNOLOGY

Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings.

SET CALENDAR REMINDERS

Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings.

SEEK PROFESSIONAL HELP

Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings.

Understanding GST and
Its Relationship with BAS

(GST) Goods and Services Tax, is a value-added tax applied to most goods and services sold in Australia. Businesses with a GST turnover of $75,000 or more must register for GST and pay tax on taxable supplies. The turnover is calculated as gross income minus GST-free sales.

Businesses with a turnover below $75,000 can voluntarily register for GST. Once registered, they charge GST on taxable supplies and claim GST credits paid on business expenses.

GST reporting can be done monthly, quarterly, or annually based on turnover. Businesses with a turnover of $10 million or more must pay GST monthly and submit a monthly BAS. Smaller businesses can choose their preferred reporting frequency.

Registered businesses must file an annual GST return by February 28th of the following year.

BAS Due Dates for Monthly Reporting

For businesses who wants to report monthly, the BAS due date for lodgement and payment is on the 21st of the following month for paper lodgement, and the 28th of the following month for electronic lodgement. Monthly BAS reporting is required for businesses with a GST turnover of $10 million or more annually.

Businesses reporting monthly should also be aware of the payment cycle for their BAS obligations. Payment cycles may vary depending on the payment method used, and it is important for businesses to keep track of these reporting and payment cycles to avoid any late payment penalties.

The payment cycle for electronic payments made using BPAY is generally two business days before the due date, while payments made using credit or debit cards may have different payment cycles. It is important for businesses to check with their financial institution to ensure they make payments on time and avoid any late payment penalties.

Small businesses lodging monthly BAS refund or payments should also be aware of the BAS statement, which is a summary of their GST, PAYG withholding, and other tax obligations for the reporting period. It is important to accurately complete the BAS statement, as it affects the amount of tax refund or payment due.

The images shows monthly BAS due dates starting from january to december. It shows that the BAS due dates per month would be the 28th of the succeeding month.

BAS Due Dates for Quarterly Reporting

If your business has a GST turnover of less than $10 million, you have the option to report your BAS quarterly. This means that you will only need to then lodge and pay a tax return for your Business Activity Statement (BAS) and make any necessary payments every quarter

Quarterly BAS reporting is a system in which businesses submit their BAS every three months, rather than monthly. This option is available to businesses with a GST turnover of less than $10 million. It is important to note that businesses can switch from quarterly to monthly BAS reporting if their GST turnover increases to $10 million or more.

The due dates for quarterly BAS are July 28, October 28, February 28, and April 28. If the due date falls on a weekend or public holiday, businesses can lodge and pay on the next business day.

Similar to payment cycle for monthly BAS reporting, there are also payment cycles for reporting quarterly BAS. Businesses have the following options for the payment cycle:

The images shows a table of the Quarterly BAS due dates. The table is for the 2023-2024 Quarterly BAS, and the text reads Quarter 1 (January-March), Quarter 2(April-June), Quarter 3(July-September), and Quarter 4(October-December)

Annual Reporting and Other BAS Due Dates

The annual tax period is a 12-month period that starts on July 1st and ends on June 30th. The due date for the annual BAS is generally August 28th of the following financial year.

In addition to the annual BAS, businesses may be required to submit an annual GST return and a December activity statement. The due date for the annual GST return and quarterly activity statements is generally February 28th of the following financial year, and the due date for the December activity statement is generally February 28th of the following calendar year.

Businesses are also required to lodge tax returns and summaries of payments by certain due dates. The due dates for tax returns may vary depending on the business structure, but typically fall on October 31st of the following financial year. Payment summaries must be provided to employees by July 14th of the following financial year.

Other BAS due dates may also apply, such as lodgement dates and payment dates for public holidays. These dates may vary depending on the specific holiday and the state or territory in which the business operates.

It shows an image saying Annual BAS Reporting with the due date of July 28th and a brief description about annual reporting that it is generally required for businesses to provide a summary of their financial information.
In conclusion, it is crucial for businesses to prioritize meeting their BAS obligations and deadlines to maintain a healthy financial standing and relationship with the Australian Taxation Office. By staying organized, seeking help when necessary, and understanding the consequences of late or incorrect lodgement and payment, businesses can successfully meet their BAS obligations and avoid penalties.

Meeting BAS obligations and deadlines is essential for avoiding late lodgement and payment penalties, as well as maintaining a good relationship with the Australian Taxation Office. By meeting the deadlines, businesses can avoid unnecessary stress, financial penalties, and potential legal action.