Introduction
As a small or medium-sized business owner, keeping up with your tax obligations can sometimes be a steep uphill climb. In particular, understanding Business Activity Statements (BAS) and Instalment Activity Statements (IAS) can be daunting, and ensuring they are lodged on time can be a source of stress.
It’s easy to feel like you’re getting lost in a whirlwind of paperwork and deadlines, trying to figure out what to include, how to prepare, and when to lodge these statements. At Impala Accountants, we understand this complexity and are here to help. We’ll guide you through the Australian Tax Office (ATO) regulations and assist you with every step of the process.
Understanding Business Activity Statements (BAS)
The Business Activity Statement is a tax reporting requirement for ATO-issued businesses. It’s used for reporting and paying goods and services tax (GST), pay-as-you-go (PAYGI) instalments (PAYGI – prepayments of income tax), PAYG withholding tax (PAYGW – tax withheld from employee wages), and other tax obligations such as fuel tax credits.
Your BAS must be lodged monthly, quarterly or annually, depending on your business’s reporting obligations. The GST is reported on either a cash basis or an accrual basis, depending on your registration. Accurate preparation is crucial, as inaccurate reporting can lead to penalties from the ATO.
Navigating Instalment Activity Statements (IAS)
For those not required to register for GST or have monthly PAYGW obligations, you need to lodge an Instalment Activity Statement. IAS is used to report PAYGI, PAYGW, and Fringe Benefits Tax (FBT) instalments.
Like BAS, the IAS also needs to be lodged monthly or quarterly, depending on your business’s obligations. Lodgement and payment deadlines are typically on the 21st day of the month following the end of the tax period.
Next Steps
Keeping track of your tax obligations doesn’t have to be a chore. At Impala Accountants, we can guide you through the intricacies of Business Activity Statements and Instalment Activity Statements. From preparation to meeting lodgement deadlines, we’re here to support you. We can even negotiate with the ATO regarding penalties and interest for late lodgement and payments remitted. Don’t let tax stress get in the way of your business success. To learn more, book an appointment online or call us at 0755361960.
Frequently Asked Questions
1. Can I lodge my BAS or IAS late?
Late lodgement of BAS or IAS can attract penalties from the ATO. It’s crucial to lodge on time, and if you’re having difficulties, it’s advisable to contact the ATO or your tax agent to discuss your options. We have an excellent track record of working with the ATO to have penalties and interest remitted in the right circumstances. We can also request lodgement deferrals in certain circumstances.
2. What is the difference between BAS and IAS?
While both are tax obligations, BAS is generally for businesses registered for GST and includes a wider range of taxes, including GST. IAS is for those not registered for GST or those registered for monthly PAYG instalments and PAYG withholding.
3. What if I make a mistake on my BAS or IAS?
If you discover a mistake after lodging your BAS or IAS, it’s possible to correct the error on your next statement or revise the lodged statement, depending on the size of the adjustment required.
Conclusion
In conclusion, understanding your BAS and IAS obligations, including their preparation and lodgement deadlines, is crucial for your business’s financial health. At Impala Accountants, we’re committed to guiding you through these complexities. With our expertise, you can focus on what you do best: running your business.
