There are a number of rules and regulations that govern businesses and their activities. Whenever you start a business, it is important that you comply with each and every requirement so that your business operations can run smoothly and you don’t end up subjecting your business to governmental fines. Business Activity Statement is one such requirement that needs to be fulfilled in order to comply with the taxation office. The compliance is necessary to earn back tax credits where applicable while it’s also important in order to avoid hefty fines as well.
What are Business Activity Statements?
Business Activity Statements are issued by the Australian Taxation Office (ATO) and the reporting and payment of taxes is done by business via these activity statements. The ATO issues the business activity statements and upon receipt, the business must fill the required sections before lodging the statement with the Australian Taxation Office. The tax obligations which need to be reported as part of the BAS include GST, FBT (Fringe Benefits Tax), ITW (Income Tax Withholding), LCT (Luxury Car Tax) and WET (Wine Equalisation Tax).
There are different types of activity statements with business activity statement as one such type. While registered businesses normally lodge business activity statements, taxpayers not GST registered but who have to entertain other tax obligations lodge income activity statements.
How often do they need to be lodged?
How often do they need to be lodged?
The frequency for lodging business activity statements is stated on the BAS itself. If the BAS states that the lodging and payment must be done monthly then the deadline would be 21st of the next month. For instance, business activity statement for the period of November must be lodged by the 21st of December. Similarly, if the BAS states quarterly reporting then the due date is the 28th of the next month of the quarterly period. For instance, for the quarter of January to March, the due date is 28th of April.
What do Business Activity Statements Include?
Business Activity Statements are tailored for each type of business. This is done in order to make it simpler for businesses to compile the BAS and to make relevant payments and lodging within the due dates. There are a number of different labels within the BAS sent by the ATO for each business and you would only be requested to fill the labels which are relevant to your business. The BAS would include your contact details, your ABN, the reporting period, summary regarding your reporting obligations, calculations regarding whether you need to pay or are due a tax refund.
Can You Do it yourself?
There is enough information available over the internet that you can submit your Business Activity Statement yourself as well. However, it isn’t advised because even a small mistake on the BAS can lead to fines. This is why it’s necessary that you completely focus on your own business and let a professional BAS registered agent handle your business activity statements. There are a number of great options available in the market with Shoebox being one such option. Shoebox is tailor made for businesses which need to lodge their Business Activity Statements and they have made a reputation for themselves with their calm approach and explanatory meetings with their employers.
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