BAS Services
Meanings behind the abreviations
BAS – Business Activity Statement
If you are a business that is registered for GST, then you’re required to lodge a Business Activity Statement (BAS), recording the taxes you are owed, or owe to the ATO from Goods and Services.
Depending on your business structure, will determine how often you have to lodge.
Either
- Monthly
- Quarterly
- Yearly
PAYG – Pay as You Go
PAYG Withholding (PAYGW): Employee tax which is reported on the Quarterly BAS or monthly IAS depending on the volume of payroll.
PAYG Instalments (PAYGI): If you’re a sole trader or company, you pay regular amounts to the ATO based on your expected annual tax via quarterly BAS or monthly IAS.
This helps manage your tax payments throughout the year.
Both methods help prevent a large tax bill at the end of the year.
Keeping your bookwork up to date and your tax codes correct reflects the true figures of your revenue and expenses and liabilities on your BAS. If not, you could be paying too much or not enough.
- Lodging on time keeps you compliant with the ATO and saves you from penalties.
- Here are the due dates of quarterly BAS lodgements https://www.ato.gov.au/tax-professionals/prepare-and-lodge/bas-agent-lodgment-program/
IAS – Instalment Activity Statement
Who uses IAS?
- If you are a medium withholder of PAYGW then you are required to lodge an IAS monthly. This will record the amount of taxes withheld. You are still required to lodge quarterly BAS.
- Businesses that are not registered for GST will need to lodge an IAS. This will record the amount of tax from your income you need to pay.
- Business that are not registered for GST and need to report PAYG Withholding, PAYG Instalments or FBT are also required to lodge IAS.
Why do I need to lodge IAS?
- The ATO make it easier for you as a business to pay your tax obligations by getting you to pay quarterly or monthly so that you’re not lumped with a huge bill at the end of the financial year.
Who can lodge my BAS or IAS?
- A BAS Agent, Accountant or yourself.
- I am a registered BAS Agent. This means I have a licence to lodge your BAS/IAS documents.
- I am Insured and belong to the ICB (Institute of Certified Bookkeepers).
- Being a BAS Agent, we need to have ongoing training to keep up with the ever changing laws to stay compliant with the ATO.
- I can prepare and lodge your BAS / IAS on your behalf and tailor the fees into your monthly budget.
