Nowadays, it’s getting much more popular for individuals to start their own businesses. Therefore, many people are lodging their Business activity statements (BAS) monthly or quarterly. However, some people do not have a full understanding of the BAS, and may not have an idea what they can claim in the BAS.
- What is BAS?
The Business Activity Statement (BAS) is a tax reporting requirement for businesses issued by ATO on either a monthly or quarterly basis. It’s used for reporting and paying goods and services tax (GST), pay as you go (PAYG) instalments, PAYG withholdings tax and other tax obligations.
- Do you need to lodge BAS?
It’s not compulsory to register GST, if your businesses’ turnover is under $75,000. Once your turnover is more than $75,000, then it is necessary to register GST and lodge BAS.
- Items that can claim GST on:
- Most of the things you buy in the shops have GST, it always shown on the tax invoices or receipts.
- Merchant fee – most of the people mix up the bank fee with merchant fee, bank fee is GST free, but merchant fee has GST.
- Items that you can’t claim GST on:
- Bank fees – monthly/annual fees, loan establishment fees
- Interest expenses – loan interest, bank interest charged
- Donations
- Government fees – council rates, water rates, ASIC filing fees, car rego, some government grants, some stamp duty, etc.
- Recharges – mobile phone recharges, City Link tolls recharges, etc.
- Gift cards
- Sensis advertising – Yellow Pages
- Wages and superannuation
- Chattel mortgages
- Second-hand goods from a charity
- Security deposits
- Food items – some food may have GST, so make sure you check the receipts
- The amount paid for a car that’s more than the luxury car limit – the max GST you can claim is $5224.
- Some insurance policy – the full amount you paid for the insurance is just partially claimable for GST, because there is a stamp duty component in the premium that is not subject to GST, you will see the actual GST you paid on the renewal form.
Due Date for Quarterly Reporting:
Quarter 1 – July to September – due 28th October
Quarter 2 – October to December – due 28th February
Quarter 3 – January to March – due 28th April
Quarter 4 – April to June – due 28th July
Monthly reporting:
The due date for the monthly BAS is on the 21st day of the following month.
Cashbook:
We can provide a cashbook for you to record your daily transactions. The cashbook will automatically calculate the GST for you, and it also generate the profit and loss statement for you at the end of the year.
What you need to do is just input your daily transactions into this Excel spreadsheet, it is simple and saves a lot of work when it comes to the end of the financial year.
Should you have any further questions regarding your businesses, BAS, and or the cashbook, please feel free to contact us on info@gpla.com.au or call the Greenhalgh Pickard officers on 07 5444 1022 for more information.