All businesses are required to comply with dynamically changing tax legislations. The current tax system came into effect in 1990 by introducing the Goods and Services Tax (GST). GST replaced indirect taxation with a 10% charge on most sales made by businesses from 1 July 2000. Businesses are required to pay GST collected to the ATO, using Activity Statements. Businesses can lodge their Activity Statements on either a monthly, quarterly or annual basis to the ATO. There are 2 types of Activity Statements.

  • Business Activity Statement (BAS) – BAS must be completed by people are who are registered for GST.
  • Instalment Activity Statement (IAS) – IAS applies to those who are not registered for GST, but with investment income.

Business Activity Statement (BAS)

A business that is required to register for GST, must first have an ABN Number. (Please contact us if you want us to make an ABN for you.) All business and individuals who are registered for GST must report their tax obligations on a BAS.

  • Prepare a BAS Statement
  • Lodge the BAS Statement
  • Report and Pay Tax as required

BAS can also be used for the following.

  • GST
  • PAYG instalments
  • PAYG withholding
  • Luxury Car Tax (LCT)
  • Wine Equalisation Tax (WET)
  • Fringe Benefit Tax (FBT) instalments

Instalment Activity Statement (IAS)

IAS is primarily applies to individual tax payers with investment income such as rental income, interests or dividend income or who have businesses with an annual turnover below the minimum GST threshold of $75,000.

Further, Some GST registered businesses must complete quarterly BAS plus monthly IAS.

IAS can be used to report:

  • PAYG Instalments
  • PAYG withholding
  • FBT instalments

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