A Business Activity Statement (BAS) is a document required by the ATO to disclose business tax obligations. This should include a breakdown of all corporate tax obligations. GST, PAYG Withholdings and Installments, Fringe Benefits Tax, Luxury Car Tax, Wine Equalization Tax, and Fuel Tax Credits may all need to be included in your BAS.
The products and Services Tax (GST) is a 10% tax on most products and services used in Australia.
Registered businesses will generally:
- Include GST in the price of sales to their customers
- Claim credits for the GST included in the price of their business purchases
GST is paid at every step of the supply chain, but businesses can claim GST credit for the majority of their business purchases and therefore the final customer bears the economic costs.
If a business has a GST turnover of $75,000 or more, or is a non-profit organization with a turnover of $150,000 or more, they must:
- Register for GST
- Work out whether their sales are taxable, GST free or input taxed
- Include GST in the price of taxable sales
- Obtain tax invoices for business purchases that have GST included in the price
- Calculate any adjustments
- Account for GST on cash or non-cash basis
- Report sales and purchases by lodging activity statements and pay the required GST