What’s included in a business activity statement (BAS)?

fvgBusiness activity statements (BAS) help businesses report on tax obligations to the Australian Taxation Office (ATO). These statements are issued by the ATO on a monthly or quarterly basis, depending on your chosen arrangement. Businesses registered with an Australian business number (ABN) and for the goods and services tax (GST) will be issued a BAS automatically, and will be required to lodge it by the provided due date. The information that is required to lodge a BAS includes your business’ obligations to the following:

Goods and services tax (GST)

The GST is a broad-based tax applied to the supply of most goods, services and anything else consumed in Australia.

Pay as you go (PAYG) income tax instalment

The PAYG income tax instalments system requires you to pay incremental amounts towards your expected end of year income tax liability.

Pays as you go (PAYG) tax withheld

PAYG tax withheld requires businesses to withhold tax from certain payments made to others, such as employees, to pay their income tax liability on their behalf.

Fringe benefits tax (FBT) instalment

Fringe benefits are provided by businesses to employees, including their employees’ family or other associates, in addition, or part of, their salary or wages package. Because fringe benefits are separate to income, FBT is also applied separately from income tax.

Luxury car tax (LCT)

In Australia, the LCT is applied to all supplies and importations of luxury cars the GST-inclusive value exceeds the LCT threshold for that financial year – generally including the price paid for accessories and modifications made to the car before delivery.

Wine equalisation tax (WET)

Applying only to wine manufacturers, wholesalers and importers, the WET is based on the value of wine.

Fuel tax credits

These credits provide businesses with a refund for the fuel tax included in the price of fuel they use for business-purposed machinery, plant and equipment and heavy vehicles.

Lodging a BAS is a requirement for all businesses registered for GST in addition to your annual tax return. Understandably, keeping track of your tax obligations and documentation can get quite complicated. So if you need reliable tax advice from accounting firm in Melbourne who has got expertise to help you out.