Once you have registered your business based in Perth or anywhere in Australia, whether it be a small start-up or a big corporation, you will have to comply with the tax obligations as required by the Australian Taxation Office (ATO). This task can sometimes be baffling and complicated for someone who doesn’t have a taxation background or knowledge. And besides, you will be too busy handling the daily operations of your business to be dealing with this mundane task anymore. However, there is no need to worry. With the help of a reputable BAS Agent, like Leeming Accounting Solutions, located south of the Perth CBD, complying with your tax obligations will be a breeze.
ATO Reporting
The Australian Taxation Office (ATO) requires every registered business to submit monthly and/or quarterly activity statements, which can be completed and lodged by your BAS Agent in Leeming, Perth. Their office requires you to submit the Instalment Activity Statement (IAS) and/or the Business Activity Statement (BAS).
What is IAS?
An Instalment Activity Statement or IAS, is a form used by taxpayers who are not registered for Goods and Services Tax (GST). It is also the form required to be lodged by entities that prepare a quarterly Business Activity Statement, but are required to remit their Pay As You Go Withholding Tax (PAYGW) on a monthly basis because they are a medium withholder. Medium withholders withhold more than $25,000 and less than $1 million Pay As You Go Withholding Tax (PAYGW) per year. The IAS is a pre-printed document issued by the Australian Taxation Office every month, which summarises the amounts of PAYG instalments (PAYGI), PAYG withholding (PAYGW) and ABN withholding. The IAS is usually used only by businesses or individuals who have Pay As You Go Instalments (PAYGI), PAYG Withholding Tax (PAYGW) and/or Fringe Benefit Tax (FBT) Instalments, and are not GST registered. It is applicable to businesses or individuals whose income comes in the form of rental income, dividends and/or interest, or businesses with an annual turnover less than the $75,000 GST registration minimum and choose not to register for GST.
What is BAS?
The BAS or Business Activity Statement, is a form that has to be submitted by a business to the ATO, either monthly or quarterly. This statement documents the different types of taxes that need to be reported by a business. Returns are completed quarterly or monthly. Monthly returns are compulsory for entities with a turnover in excess of $20 million. The BAS report contains the business labels: Goods and Services Tax (GST), Pay As You Go Instalments (PAYGI), PAYG Withholding Tax (PAYGW), Fringe benefits Tax (FBT) Instalments, Wine Equalisation Tax (WET), Luxury Car Tax (LCT) and Fuel Tax Credits. Registered businesses with an Australian Business Number (ABN) will automatically be informed by the ATO and sent a BAS when it is ready to lodge. It is necessary that reporting businesses know that the IAS and BAS are two separate forms. The IAS is for businesses and individuals who are not registered for GST while the BAS is for businesses or individuals who are GST registered.
What is GST?
The Goods and Services Tax (GST) is a tax levied on most goods, services, and other items being sold in Australia. Also known as a Value Added Tax, it is ten percent (10%) of the items’ price or value. Businesses that have an annual turnover of more than $75,000 are required to register for GST. Businesses who have registered for GST will add the rate of the GST or 10% to the selling price of their goods or services. They also claim GST credits for the goods and services that they have purchased or used for their business through the GST invoices.
GST Invoices
A GST Invoice is a receipt that you issue to your customer once he or she has purchased a taxable sale of more than $82.50, including GST. If your customer is also a GST-registered business, they can use this to claim a credit for the GST in the purchased price. The same goes for your business. Every GST invoice that you receive from a supplier or a business allows you to claim a GST credit in your monthly or quarterly BAS. However, each GST invoice must contain the following important details:
- That the document is intended to be a tax invoice
- The seller’s identity
- The seller’s Australian business number (ABN)
- The date the invoice was issued
- A brief description of the items sold, including the quantity (if applicable) and the price
- The GST amount (if any) payable – this can be shown separately or, if the GST amount is exactly one-eleventh of the total price, as a statement such as “total price includes GST”
- The extent to which each sale on the invoice is a taxable sale (that is, the extent to which each sale includes GST)
- The buyer’s identity or ABN
Business not registered for GST Consequences
Businesses or companies making more than the annual income of $75,000 are required to register their business for GST. Failing to register to GST will not qualify you to include GST in the price of your goods or services and you cannot claim the GST credits for your company purchases.
BAS Agent Services Perth
Leeming Accounting Solutions can help you keep your business running smoothly. We are experienced with ATO reporting and can offer you the following services:
- GST (Goods Sales Tax) Registration
- Sales Evaluation (Is it taxable, GST free or input taxed?)
- GST Inclusion in the price of taxable sales
- Procurement of tax invoices for business purchases that prices include GST
- GST Accounting for cash or non-cash basis
- Sales and Purchases reports
We can also assist you in processing the following:
- Pay As You Go Instalments (PAYGI)
- Pay As You Go Withholding (PAYGW)
- Fringe Benefit Tax (FBT) Instalments
- Luxury Car Tax )LCT)
- Wine Equalisation Tax WET)
- Fuel Tax Credits
Local BAS Agent Services in Perth
Leeming Accounting Solutions serve clients who are in need of a reputable BAS Agent throughout Perth’s Southern suburbs including: Ardross, Atwell, Aubin Grove, Banjup, Bateman, Bentley, Bibra Lake, Booragoon, Brentwood, Bull Creek, Cannington, Canning Vale, Cockburn Central, Coolbellup, Ferndale, Forrestdale, Fremantle, Gosnells, Hammond Park, Harrisdale, Henderson, Hilton, Huntingdale, Jandakot, Kelmscott, Kenwick, Langford, Leeming, Lynwood, Maddington, Melville, Mount Pleasant, Murdoch, Myaree, Naval Base, North Lake, O’Connor, Parkwood, Piara Waters, Riverton, Rossmoyne, Salter Point, Samson, Shelley, South Lake, Southern River, Success, Thornlie, Victoria Park, Welshpool, Willagee, Willetton and Winthrop. The following postcodes: 6100, 6102, 6106, 6107, 6108, 6109, 6110, 6111, 6112, 6147, 6148, 6149, 6150, 6152, 6153, 6154, 6155, 6156, 6160, 6163, 6164 and 6165.