Business Activity Statement

The business activity statement (BAS) is a form submitted to the Australian Taxation Office by all businesses to report their tax obligations.

These include pay as you go instalments (PAYG)fringe benefits tax (FBT)wine equalization tax (WET) and luxury car tax (LCT). PAYGW is sometimes known as “Income Tax Withholding (ITW),” PAYGI is sometimes known as “Income Tax Instalments (ITI)“.

There is a mixture of different BAS forms which an organization can complete. The form which a business receives depends on what taxation liabilities an organization has (these are referred to as roles). Statements are usually issued quarterly; some roles can be reported at different frequencies depending on business structure and income. Some roles such as GST can be reported annually, subject to eligibility criteria being met.

Although activity statements are frequently submitted quarterly, some entities are required to report obligations on a more frequent basis. Some entities may be required to report PAYG Withholding liabilities or GST monthly.

Every activity statement carries a unique document identification number (DIN). Activity statements can be submitted to the ATO on paper (mail), by phone, electronically (via a Tax Agent’s electronic lodgement system or “ELS”), or through the ATO business portal.

Activity statements are processed by the Australian Taxation Office through its operations sub-plan. Any errors which occur with activity statements are usually handled by a department known as activity statement product (exceptions {ASP(E)}). ASP(E) operates under the operations sub-plan, client account services (CAS) business service line (BSL). Errors may occur when a business client information figures incorrectly, where a client includes cent figures (only dollar figures are allowable), where an arithmetic error occurs, when a statement is submitted when no roles are active for the client, or when the handwriting on a paper statement is illegible.

The business activity statement (BAS) is a tax reporting requirement for businesses issued by us on either a monthly or quarterly basis. It’s used for reporting and paying goods and services tax (GST), pay as you go (PAYG) instalments, PAYG withholding tax and other tax obligations.

When you record for an Australian business number (ABN) and GST, ATO will automatically send you a BAS when it is time to lodge.

All businesses registered for GST are required to lodge a BAS by the due date.

For more information on myTax 2018, myGov 2018, Online Tax Return 2018 , or any other related matterplease contact us at 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

GET FREE Tax Refund estimate and Option of getting refund in 1 Hour, prior year Tax returns are also available, Just fill in your basic details on our website at www.taxrefundonspot.com.au or by emailing us on enquiry@taxrefundonspot.com.au we will check your employment history from ATO records, personal visit available at tax refund on spot.

We also have our separate department for Home loan, refinancing, car & truck loan.

PAY AS YOU GO (PAYG)

Instalments If you make a benefit from leasing your property, you should think about the PAYG portions framework. This is a framework for paying portions towards your normal expense obligation for a wage year. You will by and large be required to pay PAYG portions if you acquire $4,000 or a greater amount of business or speculation pay, for example, rental salary, and the obligation on your wage impose appraisal is more than $1,000. In the event that you are required to pay PAYG portions we will tell you. You will ordinarily be required to pay the portions toward the finish of each quarter. There are normally two choices in the event that you pay quarterly portions: n   pay utilizing a portion sum or a portion rate computed by us (as appeared on your action explanation), or n       pay a portion sum or utilizing a portion rate you work out yourself. Contingent on your conditions, you might be qualified to pay your portions every year. We will inform you in the event that you are qualified to pay a yearly PAYG portion

For more details please contact our professional accountants at TAX REFUND ON SPOT or call us on 1300768284

On the off chance that you get installments that are liable to withholding (for instance, compensation or wages) you can contribute towards your normal duty risk for a salary year by expanding your rate or measure of withholding. That way you can abstain from having an expense charge on appraisal, which implies that you may not be required to pay PAYG portions. To do this, you should organize an upwards variety by going into a concurrence with your payer to expand the rate or measure of withholding. You and your payer should finish a Withholding statement – upwards variety frame (NAT 5367).

For more information on Etax, myTax ATO, myGov and online tax return, please contact us at 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

Deduction of Money From Your Salary and Wages

Payers, such as employers, are vital to withhold tax from the payments they make to you and send those expenses to us regularly. When you lodge your tax return at the end of the financial year, you will be permitted to a credit for the amount of tax that has been withdrawn from your pay. This amount is shown on your payment summary.

Your payer works out how much tax to withhold based on information you provide in your Tax file number declaration and Withholding declaration.

Withholding rates are planned on the basis that, if your pay and circumstances remain reliable throughout the year, you may be entitled to a small refund when you complete your tax return at the end of the financial year.

This system is called pay as you go (PAYG) withholding.

When you do your tax return, you can declare certain deductions for some expenses, such as work-related expenses.

To claim a work-related deduction it must be directly related to your job – for example, if you have to buy your own protective clothing to do your job.

Some basic rules are:

• it must be directly related to your job, not for use at home
• you cannot claim a deduction if your employer has paid for it
• you must have the written records, such as revenue
• you need to declare it in the same financial year that you complete the purchase.

For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au

Residential Rental Properties – Tax Refund On Spot

If you invest in a rental property or rent out your current property, you’ll need to maintain records right from the start, work out what expenses you can declare as deductions, and declare all your rental-related income in your tax return.

Any capital gain you create when selling or otherwise disposing of the property will be subject to capital gains tax (CGT) apart from in some situation where you rent out the home you’ve been living in.

If you have an investment property that is not rented or offered for rent – such as a holiday home, hobby farm, or another dwelling you choose not to rent:

  • the property is subject to CGT in the same way as a rental property
  • you generally can’t claim income tax deductions for the costs of owning the property because it doesn’t produce rental income
  • you may be able to include your costs of ownership in the property’s cost base, which would decrease any capital gains tax liability when you sell it.

When investing in a rental property, you’ll need to keep records right from the start and work out what you can and can’t claim as a deduction.

If you buy the property with someone else, you’ll also require to work out how to divide the income and expenses.

If you make net profits from renting your property, you may require to make pay as you go (PAYG) installments towards your expected tax liability.

Generally, you only declare the income you earn from a property and claim connected expenses if your name is on the title deed.

If you buy a property, the date you enter into the contract – not the settlement date – is your date of purchase for capital gains tax purposes.

Apart from buying, you can achieve a property by inheriting it, receiving it as a prize or gift, or having it transferred to you as a consequence of a marriage breakdown.

For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au

Tax Concessions For Primary Producers

If you’re a primary producer, special tax concessions may affect which amounts you need to include in your assessable business income for an income year. Examples of primary production businesses include farming, fishing and aquaculture businesses.

Special tax concessions

There are special tax rules that may apply to your primary production income. These include concessions for:

  • profit from the forced disposal or death of livestock
  • insurance recoveries for losing livestock or for loss of trees by fire
  • selling two wool clips in an income year because of an early shearing caused by drought, fire or flood
  • averaging your income and the tax you are liable to pay over five years to allow for good and bad years
  • deposits to the Farm Management Deposits scheme that allow you to defer income to a later year.

The special concessions also influence when you have to pay your income tax, as you may be able to make two pay as you go (PAYG) installments each year, instead of four. Primary producers operating as an individual or in partnership can also help from exceptions to the non-commercial losses rules, which would or else restrict you from offsetting losses for a non-commercial business activity against your other assessable income. Those restrictions don’t apply if your income from other sources (excluding net capital gains) is less than $40,000.

For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au

PAYG Withholding for Foreign Employee

If you have any employees that are working in a foreign country, you need to be aware of your pay as you go (PAYG) withholding obligations.

Foreign earnings that do not meet any of the exemption conditions are assessable income and subject to PAYG withholding requirements. These earnings should be included in your employee’s income tax return as assessable income. They may be entitled to a foreign income tax offset for amounts of foreign tax paid.

Some payments for foreign services that relate to certain development projects, and charitable or government activities are exempt from tax. Your foreign employment income is except from tax if all of the following applies:

  • you are an Australian resident
  • you are engaged in continuous foreign service as an employee for 91 days or more
  • your foreign service is directly attributable to any of the following
    • delivery of Australian ODA by your employer (except if your employer is an Australian Government agency)
    • activities of your employer in operating a public fund declared by the Treasurer to be a developing country relief fund
    • activities of your employer in operating a public fund established and maintained to provide monetary relief to people in a developing foreign country who are distressed as a result of a disaster (a public disaster relief fund)
    • activities of your employer as a prescribed charitable or religious institution exempt from Australian income tax because it is located outside Australia or the institution is pursuing objectives outside Australia
    • deployment outside Australia by an Australian government (or an authority thereof) as a member of a disciplined force
  • you are not excluded from exemption by the non-exemption conditions.

If your foreign service is not directly attributable to these behavior, you will need to include the foreign employment income in your tax return as assessable income.

For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au