GST and BAS Lodgement
Every business owner in Australia is required to maintain accurate financial records and meet their tax obligations. This includes regularly submitting Business Activity Statements (BAS), which report taxes such as the Goods and Services Tax (GST) that businesses collect and pay. Keeping accurate records helps ensure compliance with the Australian Taxation Office (ATO) and avoids penalties.
What is GST?
According to ATO guidelines, businesses with an annual turnover above the specified threshold (which may change each year) must register for Goods and Services Tax (GST). When selling goods or services, businesses collect GST on behalf of the government. Conversely, businesses pay GST when purchasing goods and services for their operations. The Business Activity Statement (BAS) records the net GST position, detailing the amount collected versus paid.
For businesses with turnover below the threshold, GST registration is optional. However, if not registered, they cannot claim GST credits on business purchases. This decision is crucial for businesses under the threshold, and the KPG Taxation team can provide expert guidance to help make this choice wisely.
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What is a BAS?
The Business Activity Statement (BAS) is a formal record of the GST a business collects and pays. Often, businesses don’t have to pay the full GST they collect because the GST paid on business purchases is offset against the GST collected. BAS must be lodged with the Australian Taxation Office (ATO), with reporting times varying—monthly, quarterly, or yearly—depending on the business and its turnover. Most businesses in Australia choose to lodge BAS quarterly.
When filing BAS, you must also report Pay As You Go (PAYG) withholding from employee wages, as well as any other required withholding taxes.
KPG Taxation simplifies the BAS process by handling all aspects of GST and BAS lodgement for you. With 10 offices across Australia and online services available, we ensure your GST and BAS are lodged correctly to avoid penalties. Contact us for tailored packages to suit businesses of all sizes.