All About BAS Due Date 2023
For the majority of individuals who make a living in Australia, filing a tax return is required every year, but it doesn’t have to be a difficult process.
Your annual tax experience can be simple and easy to navigate if you are conscientious and aware of the due dates.
Everything you need to know about BAS due date is covered in this article, including deadlines, how it operates, lodging your BAS, ways to reduce BAS payments, what happens when mistakes are made, advice, and more.
What is BAS?
BAS is an abbreviation for Business Activity Statement. If your company is registered for GST, you must submit this form to the ATO.
The Business Activity Statement is a document used by businesses to report and pay various taxes to the Australian Taxation Office (ATO).
Your BAS statement informs the ATO how much tax you have to pay or get returned.
Your BAS will assist you in reporting and paying your:
GST (Goods and service tax)
PAYG instalments (Pay as you go)
PAYG withholding tax
other taxes.
Who needs to file a BAS?
Businesses having an Australian Business Number (ABN) and GST registrations are normally required to file a BAS. This comprises businesses with a $75,000 or higher yearly revenue.
Lodgement Frequency:
The lodgement frequency is calculated by the turnover and reporting history of the business. It can be done on a monthly, quarterly, or annual basis.
If your business has an annual GST turnover of less than $20 million, your reporting period will be quarterly, unless the ATO informs you differently.
If you voluntarily registered for GST and your GST turnover is less than $75,000, you must submit a report annually. For not-for-profit entities, this cap is set at $150,000.
Your BAS will be payable on a monthly basis if the business has an annual GST turnover of $20 million or higher.
BAS Quarterly Deadlines
For businesses with a GST turnover of less than $20 million, the next BAS due date will be the 28th of the month after the end of the fiscal quarter.
The only time this does not apply is at the end of the second quarter, which ends in December and for which the reporting date is moved to February.
These are the four BAS due dates for each quarter:
1st Quarter:
July, August, and September. Date due for the quarter is October 28.
2nd Quarter:
October, November, and December. Due date for the quarter is February 28.
3rd Quarter:
January, February, and March. 28 April is the deadline for this quarter.
4th Quarter:
April, May, and June. Date of quarter due is July 28.
Monthly BAS due dates
Larger businesses in Australia file a monthly business activity statement since they often have more information to report.
By lodging BAS more regularly, they can better manage their cash flow and avoid the unpleasant surprise of a big tax obligation every three months.
The 21st day of the following month will be when your next BAS is due if your yearly GST turnover exceeds $20 million.
For instance, your June BAS report is due on July 21.
Due dates for annual BAS
If your company falls into this group, your yearly BAS due date is on October 31.
If you are not required to file a tax return, the annual BAS due date is the 28th of February following the fiscal year.
How to file a BAS?
BAS statements can be filed online, by mail, or through a registered tax agent. To ensure that you file your BAS on time, make sure you are aware of the pertinent BAS due dates for your business.
Ways to lodge online:
There are several ways to file online , including:
You can manage your tax and super in one location using Online Services for Individuals and Sole Traders (accessible through myGov).
Online services for business: a safe ATO website where you can manage your business’s tax issues.
SBR-enabled software enables safe online submission straight from accounting, payroll, or finance software and is frequently connected with business software that is specialised for a particular industry.
Or you can also lodge via your tax or BAS agent.
An authorised tax or BAS agent can file, amend, and make payments on your behalf using their chosen electronic method.
When you work with an agent, they can see your BAS due date and any reminders you’ve received via their online service.
What happens if you miss your BAS due date?
There are a variety of explanations as to why you could have forgotten to file your taxes this year.
Theoretically, this implies that you may be subject to a late-filing penalty.
For the first 28 days following the lodgement date, this fine is $222. It then rises by an additional $275 after each further 28-day period, with a cap of $1,375. Contacting the ATO as soon as you can is crucial in order to take care of it.
It might be a good idea to have any supporting evidence for the delay in BAS due date on hand if you can, but it can also just assist in reducing the amount of penalties you owe. To prevent extra fines, you just need to finish and file your tax return as soon as possible.
But the best option is to file your BAS on its due date.
We advise filing your BAS when it’s due, even if you’re unable to make the payment at that time because failing to do so may result in a lot of penalties from the ATO.
Ways to reduce BAS payments
Due to a few typical BAS mistakes, people have often paid too much GST. Here’s how you can avoid it:
You can claim a GST credit on your BAS for any GST you paid on products and services for your business. A GST credit lowers the amount of GST that a business must pay when selling its products or services.
Pay GST on Cash Basis
There are two ways to pay GST if you run a small business with an aggregated turnover (your company’s turnover plus the turnover of companies that are closely related to you) of less than $10 million:
Cash / Non-Cash (accrual)
When you receive money from your clients and choose to pay your GST on a cash basis, you will do so within the BAS period.
If you want to pay your GST on an accruals basis, you do so when you charge your clients during the BAS period. Due to your clients’ payment periods, which might be 30, 60, or 90 days, this BAS period would not coincide with when you actually get their money.
So paying GST on a cash basis can improve your cash flow since you pay the GST when you get payment rather than when you issue an invoice.
GST- Free Sales
In Australia, a few goods and services are excluded from the GST. Most of these involve food, some medical/health services, and exports.
You are not required to pay GST on any sales made by your company of GST-exempt goods or services.
FAQs
A tax return computes the amount of tax you must pay on the revenue from your business for the fiscal year.
Conclusion
In conclusion, the Business Activity Statement (BAS), which acts as a thorough reporting tool for firms, is crucial to Australia’s tax system. Its multiple elements—including the Goods and Services Tax (GST), Pay As You Go (PAYG) withholding, and other taxes—ensure accurate and honest financial reporting.
As tax rules change, it is critical for businesses to remain informed by relying on trustworthy sources such as the Australian Taxation Office (ATO) or certified tax experts.
Following BAS due date responsibilities promotes financial transparency, complies with legal obligations, and aids in the efficient functioning of businesses across Australia.
