What Is BAS? Eligibility And Criteria To Lodge Your BAS

Posted by Palladium Financial Group on April 2nd, 2021

A business activity statement is a form submitted to the Australian Taxation Office (ATO). This is a Business Activity Statement 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.

Are you eligible to lodge BAS?

You will only be required to lodge a BAS when you have registered for GST. GST registration is required when your business’s gross income is equal to ,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 and GST, the Australian Taxation Office (ATO) will let you know when a BAS is due to be lodged. Another thing to be aware of before BAS lodgement is to make sure you are considering your business type, as requirements vary for Sole Traders and other business structure.

What is Simpler BAS?

It is also good to know that the ATO is now providing newly registered small businesses with the option to report less GST information on a simpler BAS. Simpler BAS is the default reporting method for small businesses with a GST turnover of less than million you don't need to complete a GST calculation worksheet. If you lodge a paper BAS or annual GST return, the sections where information is no longer needed can be left blank.

Simpler BAS will reduce the complexity of GST bookkeeping and reporting, and in doing so will reduce compliance costs, however, it’s worth noting that the underlying GST law is not changing. The process to attain the figures for your BAS is the same and you still need to keep records such as invoices, as proof of any claims you make in your BAS.

Hence, BAS is a legal obligation that needs to be lodged to avoid unwanted penalties and fine. BAS accountants are professionals who are entitled to BAS lodgement.