
This column is being provided as key points of information, highlighting general business and compliance management points that may be of interest for Member Businesses. (Always refer to ATO websites or nominated Tax Agent for clarification of information and how or if, it may be applicable to your Business or self).
Is your business BAS-ready?
Now is a great time to make sure your business is ready to meet upcoming business activity statement (BAS) due dates. The BAS applies if you run a business that’s registered for GST. You’ll need to report and pay using a monthly or quarterly BAS, and may report and pay GST annually, depending on your business turnover and other circumstances.
When you register for an Australian business number (ABN) and GST, the ATO will automatically send you a BAS when it’s time to lodge. This will help you report and pay your business’s GST, pay as you go (PAYG) instalments, PAYG withholding tax and other taxes and credits.
You can lodge your own BAS online using ATO Online Services (which may make you eligible for extra time to lodge), or directly from some business and accounting software. Payment is generally due by the same date as lodgment. Alternatively, you can have your registered tax agent or BAS agent lodge and handle payments on your behalf, which can also mean you get extra time to lodge.
To make your BAS as stress-free as possible, it’s important to:
- keep records of all sales, fees, expenses, wages and other business costs;
- keep appropriate records, such as stocktake records and logbooks to substantiate motor vehicle claims;
- reconcile sales with bank statements;
- use the correct GST accounting method; and
- keep all your tax invoices and other GST records for five years.
Finally, remember that you (or your agent) always need to lodge a BAS by its due date, even if your business has nothing to report for the period. You can lodge a “nil” BAS online or by phoning the ATO’s automated reporting service.
ATO data-matching: “lifestyle” assets and your business
The ATO has announced or extended a number of data-matching programs recently, including the lifestyle asset data-matching program. Data will be acquired from insurance providers for 2023–2024 to 2025–2026 for specified classes of asset where the asset value is equal to or exceeds nominated thresholds. The assets and thresholds covered are:
- caravans/motorhomes: $65,000;
- motor vehicles including cars, trucks and motorcycles: $65,000;
- thoroughbred horses: $65,000;
- fine art: $100,000 per item;
- marine vessels: $100,000; and
- aircraft: $150,000.
Some of the tax risks relevant to businesses that the ATO is keen to address are the:
- omission or incorrect reporting of income and/or capital gain;
- incorrect claiming of GST credits;
- omitted or incorrect reporting of FBT; and
- use of assets by self-managed super funds (SMSFs) in breach of the law.
The ATO estimates that between 650,000 and 800,000 policy records will be obtained each year, with 250,000 to 350,000 matched records relating to individuals.
(Information as provided by KS Black and Co’, Chartered Accountants and Tax Agents to BIA Ltd, https://www.ksblack.com.au)