Nobody loves paying tax. But as a small business owner, this is a reality. One that should be dealt with upfront rather than being put on the backburner. Many business owners find themselves avoiding the submission of their Business Activity Statement (BAS) leading to unnecessary penalties and headaches. Here is everything you need to know about the BAS and how to ensure you are always covered and in control.
What is the Business Activity Statement?
The BAS is a form required by the Australian Taxation Office (ATO) for all registered businesses. By law, every business is required to report all tax obligations. This includes GST, pay as you go withholding (PAYGW), pay as you go instalments (PAYGI), goods and services tax (GST), fringe benefits tax (FBT), wine equalization tax (WET) and luxury car tax (LCT). (That’s a lot of acronyms! And explains the overwhelm felt by small business owners.) Once submitted, the ATO provides a tailored BAS to each business outlining upcoming tax requirements.
What happens if I don’t lodge my BAS on time?
In a word- penalties. So even if you can’t actually pay yet, make sure you meet the relevant deadlines to avoid even more unnecessary costs.
What are the time frames?
|The due date for each quarter (2019)|
|1 – July, August and September||28 October|
|2 – October, November and December||28 February|
|3 – January, February and March||28 April|
|4 – April, May and June||28 July|
What happens if my business can’t pay?
The ATO is well within their rights to impose fines for late payers. As of 1 July 2017 failure to lodge on time results in a $210 fine. This amount can be repeated every 28 days up to five 28 day periods. However, if you can’t pay on time, you do have options.
Payment options and opportunities
Be on time
Your first port of call is to lodge with the ATO on time. This also safeguards you from personal liability down the line.
Ask for assistance
You may be surprised at how flexible the ATO can actually be. If you owe less than $20 000 you may be able to cut a deal. So always ask! If it’s more than that, the ATO also provide these payment plans. So be sure to have a thorough scan to see if you are eligible. What remains important is that you ‘play the game’ by staying in touch and up to do date with the ATO. This will keep your account in good standing and may assist with deals down the line.
What other options do I have to pay for my Business Activity Statement?
There is always Merchant Financing. This is a quick working capital solution designed for retail businesses. If your business operates with an EFTPOS terminal, has been in business for over six months, and has an average monthly turnover of over $5000, you can apply for up to $500,000. Best of all funds can be received within 48 hours. Jaco Gunter, MD of Beyond Merchant Capital says, “We want to empower entrepreneurs with the working capital they need to keep the focus on what they do best: Running their business! With our working capital solution, BAS needn’t be an unnecessary distraction.” The Beyond Merchant Capital Pay-As-You-Trade system processes repayments through a business’s EFTPOS terminal system as a small-agreed percentage of every card transaction. Rendering repayment (and tax obligations) virtually painless!” The important thing is that you are empowered with knowledge and funds that will keep your business moving forward.
For more information on accessing finance to ease your tax burden, speak to Lending Specialist today.
Speak with a lending specialist today about funding the growth of your business.