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Business Activity Statement

  • Minimise Your Tax Liability
  • Expert Tax Agents
  • Avoid BAS late Payment Penalty

Welcome to TMS Financials, your trusted partner for handling Business Activity Statement (BAS) services. As an Australian business, you’re required to report and remit various tax obligations to the Australian Taxation Office (ATO) using the BAS. This includes Goods and Services Tax (GST), Pay As You Go (PAYG) withholding and instalments, Fringe Benefits Tax (FBT), Luxury Car Tax (LCT), Wine Equalisation Tax (WET), and Fuel Tax Credits (FTC).

Depending on your business’s turnover, you may need to lodge your BAS monthly or quarterly. While you can lodge online, through a tax agent, or by mail, missing the deadline can lead to penalties. At TMS Financials, we’re here to ensure timely and accurate BAS lodgement, and can assist with seeking extensions or payment plans from the ATO if needed. Trust us to simplify your tax obligations.

Do I Need To Lodge BAS?

Yes, as a small business owner or investor, if your business is registered for GST, you are required to lodge a Business Activity Statement (BAS). BAS is crucial as it allows you to report and make payments for goods and services tax (GST) and pay as you go (PAYG) instalments.

Business Owners

Business owners in Australia who are registered for the Goods and Services Tax (GST) are required to lodge a Business Activity Statement (BAS).

  • Over $75,000 or more annually
  • Sell Goods and Services
  • Made payments to contractors or employees

Investors

Investors might need to lodge a BAS if their activities qualify as running a business, such as being registered for GST due to commercial property rentals or large-scale property flipping.

  • Incurred expenses related to earning investment
  • Did you earn any interest, dividends, rental income or other investment

Key Taxes Reported in a Business Activity Statement

Navigating the complexities of tax compliance can be daunting for small business owners and investors. At TMS Financials, we specialize in helping you stay on top of the key taxes reported in a Business Activity Statement (BAS). Our expert team ensures accurate and timely lodgement, keeping you compliant and giving you peace of mind.

Goods and Services Tax (GST)

GST reporting in your Business Activity Statement (BAS) can be tricky, and errors can lead to overpayment of tax. For example, a business might mistakenly report GST on a GST-free Sale, resulting in unnecessary additional tax payments. At TMS Financials, our expert team helps you avoid such costly mistakes. We meticulously review your transactions for accurate GST reporting, ensuring you only pay the tax you owe.

Pay As You Go (PAYG) Withholding and Instalments

Correctly handling PAYG Withholding and Instalments in your BAS is crucial, as errors can lead to overpayment. For instance, if a business incorrectly calculates PAYG Withholding from employee wages, it could pay more tax than necessary. At TMS Financials, our team ensures accurate reporting of your PAYG obligations, helping you avoid unnecessary tax expenditure.

Fringe Benefits Tax (FBT)

Although the FBT return is lodged separately, businesses can choose to pay their FBT liability in quarterly installments. These installments are reported and paid through the BAS. The amount of the installments is based on the FBT liability for the previous year.

Wine Equalisation Tax (WET)

The Wine Equalisation Tax (WET) is a tax on wine sold in Australia. It’s usually paid by those who make, import, or sell wine wholesale. If your business deals with wine in these ways, you need to include WET in your Business Activity Statement (BAS).

Fuel Tax Credits (FTC)

If your business is eligible for fuel tax credits and you’re registered for Goods and Services Tax (GST), you can claim these credits on your Business Activity Statement (BAS). The amount of fuel tax credits you can claim depends on when you acquired the fuel, what type of fuel you use, and how you use it.

Luxury Car Tax (LCT)

Luxury Car Tax (LCT) is reported in a Business Activity Statement (BAS) if your business is required to pay it. LCT is a tax on cars with a GST-inclusive value above a certain threshold. It’s typically paid by businesses that sell or import luxury cars.

BAS Due Dates

At TMS Financials, we take the stress out of managing BAS due dates for business owners and investors. With our expertise and meticulous approach, you can enjoy peace of mind knowing that your BAS lodgement will be handled promptly and in compliance with ATO requirements. Trust us to keep you on track and provide the peace of mind you need.

Here is a brief overview of the BAS due dates and quarterly deadlines in Australia:

Quarterly BAS

Most small businesses lodge their BAS on a quarterly basis. The quarters are generally divided as follows:

  • July to September (Q1): The due date for lodgement and payment is usually the end of October.
  • October to December (Q2): The due date for lodgement and payment is usually the end of February of the following year.
  • January to March (Q3): The due date for lodgement and payment is usually the end of April.
  • April to June (Q4): The due date for lodgement and payment is usually the end of July

Monthly BAS

Some businesses with higher annual sales may be required to lodge their BAS on a monthly basis. The due date for monthly BAS is generally the 21st day of the following month.

Visit our BAS Due Dates page for more information on the specific deadlines for your Business Activity Statement.

Do I need a tax agent for BAS Lodgement?

Engaging a tax agent for BAS lodgement offers distinct advantages to small business owners, including access to later due dates compared to self-lodgement.

Extended Deadlines

Tax agents often have extended deadlines, providing more time for accurate preparation and lodgement of BAS.

For more information see the ATO’s Page on BAS Due Dates

ATO Representation

The Australian Taxation Office (ATO) tends to have greater confidence when a tax agent represents a small business owner. The expertise and professional representation of a tax agent instill a sense of reliability and compliance, reducing the likelihood of ATO scrutiny or audit.

Lodge Your BAS With Confidence By Choosing A Trusted Tax Agent.

BAS Lodgement Service

Late-Lodgement And Non-Lodgement ATO Penalties

Penalties for not complying with Business Activity Statement (BAS) obligations can be severe. The Australian Taxation Office (ATO) imposes a range of penalties for failing to lodge BAS on time or not making the correct payments. These penalties are designed to encourage businesses to comply with their tax obligations.

One of the penalties that can be imposed is the Failure to Lodge (FTL) penalty. This penalty is calculated based on the number of days that the BAS is overdue. The penalty amount increases the longer the BAS remains outstanding. The current penalty rate is $222 for each 28-day period or part thereof that the BAS remains outstanding, up to a maximum of $1,110.

FINE

Late Lodgment

$210 for each period of 28 days or part thereof that the statement remains outstanding, up to a maximum of $1,050.

PENALTY

FINE

Failure to pay on time

Penalty can be up to 20% of the unpaid tax amount for failure to pay on time.

PENALTY

FINE

General interest charge (GIC)

Daily interest accrues on unpaid taxes, including penalties and interest charges. The rate is updated quarterly and is generally higher than standard interest rates.

PENALTY

FINE

Administrative Penalties

The penalty can range from $250 to $4,500, depending on the entity type and the seriousness of the failure.

PENALTY

How to Avoid ATO Penalties

Avoiding unnecessary fines and unexpected bills from the Australian Taxation Office (ATO) is crucial for business owners. Late lodgement or non-lodgement of tax returns and Business Activity Statements (BAS) can lead to penalties that are completely preventable. Many clients who manage their own tax affairs, including BAS, have faced mounting fines due to these issues.

At TMS Financials, we understand the challenges and risks involved. That’s why we are here to provide you with a comprehensive understanding of the penalties associated with late or non-lodgement, empowering you to take control and eliminate the risk of fines in the future.

GOOD

Stay Organized

Establish a systematic approach to record-keeping and document management. Keep track of your financial transactions, invoices, and relevant records in an organized manner, ensuring you have all the necessary information readily available when it’s time to lodge your BAS.

TIPS

GOOD

Set Reminders and Deadlines

Create calendar reminders or use digital tools to set alerts for BAS lodgement due dates. Stay proactive and ensure you have ample time to gather the required information, complete the necessary calculations, and submit your BAS before the deadline.

TIPS

GOOD

Engage a Tax Agent

Consider partnering with a tax agent, such as TMS Financials, who specializes in BAS lodgement. They can provide expert guidance, manage deadlines on your behalf, and ensure accurate and timely lodgement while keeping you compliant with ATO requirements.

TIPS

GOOD

Plan Ahead and Seek Assistance

Anticipate potential challenges and seek assistance in advance. If you foresee any issues or complexities with your BAS, such as reconciling complex transactions or understanding specific tax requirements, consult with a tax professional well in advance of the lodgement due date.

TIPS

Next Step

If you need further assistance with your BAS obligations, such as lodging your next, or setting up a payment plan, it’s recommended that you schedule a meeting with us. We can provide you with the support and guidance you need to ensure that you meet your BAS obligations on time and avoid any penalties for non-compliance.

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BAS Lodgement Service