Due Dates for Lodging and Paying Your BAS
Managing your tax obligations is an integral part of running a successful business, and one key requirement is lodging and paying your Business Activity Statement (BAS) on time. This serves as a crucial document that helps you report your business’s income, Goods and Services Tax (GST), and other relevant taxes.
To ensure compliance with the Australian Taxation Office (ATO) regulations, it is essential to understand the specific due dates for lodging and paying your BAS. By adhering to these deadlines, you can avoid penalties, maintain good financial standing, and focus on driving your business forward.
In this guide, we will explore the important aspects of Business Activity Statements due dates and provide you with valuable insights to help you navigate this process smoothly and efficiently.
When is the Due Date for Lodging and Paying Your BAS?
In Australia, the due dates for lodging and paying your BAS depend on your business’s reporting frequency and turnover. Here are the general due dates:
Quarterly Reporting (GST turnover less than $20 million)
For businesses with a GST turnover of less than $20 million, the ATO requires quarterly BAS reporting. This reporting frequency allows businesses to submit their statements every three months, providing a snapshot of their financial activities during that period. The due date for quarterly reporting is the 28th day of the month following the end of the taxable period.
Let’s consider an example: If the quarter ends on 30 June, the BAS for that quarter would be due on 28 July. It’s crucial to ensure timely submission of your statement within this timeframe to comply with ATO regulations.
Monthly Reporting (GST turnover of $20 million or more)
Businesses with a GST turnover of $20 million or more are required to lodge their BAS on a monthly basis. This reporting frequency offers a more frequent and detailed overview of a business’s financial transactions. The due date for monthly reporting is the 21st day of the month following the end of the taxable period.
For instance, if you are reporting for the month of January, the corresponding statement would be due on 21 February. It is essential to keep track of the monthly reporting cycle and meet the deadline to fulfil your tax obligations effectively.
Special Consideration for Schools and Associated Bodies
Schools and associated bodies are granted a deferral for their December BAS. This deferral allows them additional time to complete and submit their statement for the final month of the calendar year. These statements will be issued with a deferred due date of 21 February.
This deferral recognizes the unique reporting requirements and operational challenges faced by schools and associated bodies, ensuring they have adequate time to accurately report their financial information while managing their year-end processes.
Lodging Your BAS
When it comes to lodging your Business Activity Statement, the ATO provides multiple options to suit your convenience. You can choose to lodge your statement online, by mail, or by phone, depending on your preference and circumstances. Here are the different methods available:
- Online Lodgment: Create an account with the ATO and lodge your statement electronically through their online portal.
- Mail Lodgment: Fill out the BAS form, available from the ATO, and send it by mail to the designated address.
- Phone Lodgment: In certain cases, you may be able to lodge your statement over the phone using the ATO’s forms.
Remember to provide accurate and complete information and keep a record of your lodgment for future reference. For more detailed instructions, visit the ATO’s website or consult a tax advisor.
Penalties For Late Lodgement or Payment
Penalties and interest can be imposed for late lodgment or payment of your BAS in Australia. Here are the key points regarding penalties and interest:
Late Lodgment Penalty
If you fail to lodge your BAS by the due date, the ATO may impose a penalty. The amount of the penalty depends on the length of the delay. The longer the delay, the higher the penalty amount may be. It is important to note that the ATO has different penalty regimes for different taxes and reporting obligations.
Late Payment Interest
If you fail to pay your BAS by the due date, the ATO may charge you interest on the outstanding amount. The interest is calculated daily and accrues until the outstanding balance is fully paid. The interest rate applied is determined by the ATO and is subject to change over time.
To avoid penalties and interest charges, it is crucial to lodge your statement and make the payment on or before the specified due dates. Keeping track of the due dates, setting reminders, and allocating sufficient funds for payment can help you meet your tax obligations in a timely manner.
In case of difficulty meeting the lodgment or payment deadlines, it is advisable to contact the ATO promptly. In certain circumstances, they may consider granting extensions or offering alternative arrangements based on individual situations. It is crucial to communicate with the ATO and seek their guidance to mitigate any potential penalties or interest charges.
Tips for Australian Expats and Foreign Investors
For Australian expats and foreign investors residing overseas, it’s important to be aware of your tax obligations in Australia. Here are some key tips to keep in mind:
- Determine your residency status: Understanding your residency status is crucial as it determines your tax obligations in Australia. The ATO uses specific criteria to determine residency, considering factors such as the duration of your stay overseas and your ties to Australia. Consult the ATO’s guidelines or seek professional advice to determine your residency status.
- Lodge a BAS if required: As an Australian expat or foreign investor, you may still be required to lodge a statement in Australia. This depends on various factors, such as your business activities or investments within the country. Ensure you are familiar with the requirements and deadlines for lodging your BAS. The ATO provides resources and guidance to assist you in understanding and fulfilling your tax obligations.
- Seek professional advice: Tax laws and regulations can be complex, especially for expats and foreign investors. Consider consulting a tax professional or accountant with experience in international taxation to ensure compliance and optimise your tax position. They can provide tailored advice based on your specific circumstances and help you navigate the complexities of cross-border taxation.
- Utilise ATO resources: The ATO offers a range of resources to assist expats and foreign investors. Visit the ATO’s website to access information, publications, and tools specifically designed for individuals living overseas. These resources can provide clarity on tax obligations, residency status, and other relevant topics.
- Stay informed and updated: Tax laws and regulations may change over time, so it’s essential to stay informed about any updates or amendments that may impact your tax situation. Regularly check the ATO’s website, subscribe to their newsletters or notifications, and consult with tax professionals to ensure you are up to date with the latest developments.
Speak with a Tax Expert
Being aware of the due dates for lodging and paying your Business Activity Statement is crucial to maintain compliance with tax regulations and avoid penalties or interest charges. By understanding these deadlines, you can effectively manage your tax obligations and ensure timely lodgment and payment.
If you have any inquiries or require further clarification regarding the due dates for lodging and paying your BAS, it is recommended to reach out to the Australian Taxation Office (ATO) for accurate and up-to-date information. The ATO can provide guidance specific to your situation and assist you in meeting your tax responsibilities.
For personalised advice and assistance with your tax affairs, including BAS lodgment and payment, we invite you to speak with our team of experienced tax experts. Our professionals are well-versed in tax regulations and can provide tailored guidance to help you navigate the process smoothly.
Contact us today to schedule a consultation and ensure that your tax obligations are managed effectively.
Frequently Asked Questions
A BAS is a Business Activity Statement. It is a tax return that reports your income, GST, and other taxes.
The frequency at which you need to lodge a Business Activity Statement depends on your business’s size and turnover.
You can find more information about the due dates for lodging and paying your BAS on the ATO’s website.
Missing the deadline can result in penalties and interest charges. It’s important to pay on time.
Yes, the ATO provides an online platform for convenient lodgment and payment.
Some businesses may have a different lodgment schedule based on specific circumstances. It’s essential to understand your reporting requirements.
A tax professional can ensure that you’re following the correct procedures, meeting deadlines, and staying compliant with tax obligations.
Lodge your tax return today
Odin Tax helps you lodge your Australian tax returns from overseasLodge Now