BAS Like a Boss: Understanding your BAS statement and bringing home bacon

Unless you’ve been living on candy mountain, with your peepers above the clouds, you’re no doubt aware that your bizz has a few reporting requirements. As an Australian business owner, the term BAS (or Business Activity Statement) should mean a thing or two to you. No need to yawn, here we will investigate all things BAS and bring things back to BASics (you love it).

Other than a tasty fish, what is a BAS? It’s simply a tax-reporting tool sent to you by the ATO monthly or quarterly.

What’s all the fuss? You’ll need to report your PAYG installments, PAYG withholding tax and any GST you’ve charged. Unless you’re an Uber driver, you won’t need to register for GST when earning less that $75 grand annually through your ABN. As an Uber chauffeur you’ll be required to report a GST amount by multiplying your Uber income by .11 (to gain the extra 10% of added GST, yo).

Do I need to fill it in? If you have a registered ABN, then yeah-ya do. Even if you didn’t earn anything from your business during the reporting period, you’ll need to report a nil amount. And again, if you’re Ubering- you’ll need to fill this sucker in too. The ATO will so politely send your BAS to you automatically if you have an ABN or are registered for GST (what a charmer).

When will I need to report? You can opt for monthly or quarterly reporting- you do you.

Any changes I should know about? As of 19th Jan 2017, newly registered small businesses get a little perk. Or more specifically- a simplified BAS (yes!). And, if you’ve registered for GST, you can calculate your GST quarterly but report annually. Meaning? Less time spent book keeping, filling in your BAS and proBAStinating (get it?).

How do I make sure that I pay enough tax?  Chat with the ATO to discuss your personalised needs.  By putting away a third of income, you’ll reduce the risk of nasty fines and may get some cash back at tax time.

So what are you waiting for?  Get BASin’!

Disclaimer: I am not a tax agent nor do I claim to be. All of the above information has been sourced from the ATO website and general chin wags that I’ve had with the ATO.

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