BAS Information

BAS stands for “Business Activity Statement”. IAS stands for Instalment Activity Statement. An activity statement is a reporting document in which Australian business calculate and record all their tax liabilities for submission to the Australian Taxation Office (ATO).

The BAS and IAS were brought in with the introduction of GST in 2000 and is a regular, ongoing requirement for business once they become liable to pay business taxes. Whenever businesses file their BAS they have to pay any tax due, which allows the government to collect revenue sooner, and helps businesses to even out their cash flow by spreading out the payment of taxes over the year.

The purpose of the BAS is to simplify business tax reporting. It is a single, consolidated form for the reporting of all business taxes. This means that if your business is liable for any of the taxes applying to activity statements then you will have to prepare and submit one, even if the other taxes do not apply.

Most business only encounter the BAS requirements once they register for GST. Registration foro GST is mandatory once the turnover of a business reaches $75,000. However, registering for GST allows a business to claim back the GST paid on legitimate business expenses, so some businesses choose to sign up before they reach the $75,000 threshold.

Once you register your business will become part of the mechanism for collecting GST, taking on responsibility for collecting it from your customers. Your BAS is the method by which you will report to the ATO how much GST you have collected and how much you have paid. This is an effective method to calculate how much you are entitled to claim back.

The information you have to include in your Activity Statements will depend on the nature of your business – whether you are a commercial business or a not for profit organisation; whether you have employees and if so whether the receive just wages or also benefits; whether your business is making a profit or has yet to break even. The BAS covers GST, PAYGw, PAYGi, FBT, Fuel Tax Credits, WET Wine Equalisation Tax. If you are registered for GST you must complete a BAS. If you are not registered for GST but are required to pay some of the other taxes you may only have to lodge an IAS.