A Business Activity Statement (BAS) must be submitted to the ATO for the purpose of reporting business tax obligations. This must consist of all business tax obligations. Your BAS may need to include GST, PAYG Withholdings and Instalments, Fringe Benefits Tax, Luxury Car Tax, Wine Equalisation Tax and Fuel Tax Credits.
Goods and Services Tax (GST) is a broad based tax of 10% on most goods and services consumed in Australia.
Registered businesses will generally:
- Include GST in the price of sales to their customers
- Claim credits for the GST included in the price of their business purchases
GST is paid at every step of the supply chain, but registered businesses can claim GST credit for the majority of their business purchases and therefore the final customer takes on the economic costs.
If a business has a GST turnover of $75,000 or more, or is a non-profit organisation with a turnover of $150,000 or more, they must:
- Register for GST
- Determine whether their sales are taxable, GST free or input taxed
- Include GST in the price of taxable sales
- Obtain tax invoices for business purchases that have GST included in the price
- Calculate any adjustments
- Account for GST on cash or non-cash basis
- Report sales and purchases by lodging activity statements and pay the required GST
Businesses with PAYG Withholding of greater than $25,000 per year must also lodge an Instalment Activity Statement (IAS) monthly.