What is a BAS?
You have probably found that running a business means learning a lot of new acronyms, one of the most common being a BAS. This is a Business Activity Statement which issued monthly or quarterly, so you can report on Goods and Services Tax (GST), Pay As You Go (PAYG) instalments, PAYG withholding tax and any other tax obligations that you have as a business.
Not everyone needs to lodge one
You will only be required to lodge a BAS when you have registered for GST. GST registration is required when your business’ gross income (excluding GST of 10%) is equal to $75,000 or more.
It might not be necessary to register for GST in the early stage of your business but be aware that once you start earning the big bucks, it is a legal requirement! When you register for an Australian Business Number (ABN) and GST, the Australian Taxation Office (ATO) will let you know when a BAS is due to be lodged. Read more about BAS requirements here.
Another thing to be aware of before submitting a BAS is to make sure you are considering your business type, as requirements vary for Sole Traders and other business structures.
Check out the ATO website to find out more, we can also take care of all your BAS work for you.