Home – New Forums Starting your journey BAS+Annual GST+ Business return

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  • #973132
    tahera
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    Hi guys,
    i have a confusion over these basic terms…i know its crazy….

    BAS=GST paid-GST received (do we consider PAYG tax here? i think so, but do you add it to GST collected and minus it from GST paid?)
    Annual GST= what is this…. i am not clear…
    Business return….is this the same as individual return and company return?

    I have been reading the ATO website for the last four hours maybe that is why i lost the basic terms of GST….or i should get my tea with a break and rethink to get the sense behind these terms.
    but thanks anyways….
    cheers

    #1059944
    VehicleMods
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    BAS = Business Activity Statement which purely deals with GST activities and reporting how much GST you must remit.

    It’s been quite a few years since I paid employees but I used a payroll system that did it all for me and at the end of the month I remitted the withholding to the ATO and employee super to the super fund. It took no time at all.

    The other withholding to worry about is if you pay somebody who does not have a ABN who is not an employee. You have to deduct tax at the highest marginal tax rate. Your payroll system will look after this.

    So basically the rule is, you only pay somebody who is an employee or who provides you with a tax invoice quoting an ABN and life is simple.

    It is however possible to generate income as part of a hobby (say writing for a craft magazine) and the income can be treated as tax free in some circumstances. In that case, you need to complete an ATO form called “Statement by a Supplier” and tender it with your invoice so the magazine does not deduct the withholding tax (at the highest marginal tax rate).

    #1059945
    JanF
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    tahera, post: 73935 wrote:
    Hi guys,
    i have a confusion over these basic terms…i know its crazy….

    BAS=GST paid-GST received (do we consider PAYG tax here? i think so, but do you add it to GST collected and minus it from GST paid?)
    Annual GST= what is this…. i am not clear…
    Business return….is this the same as individual return and company return?

    I have been reading the ATO website for the last four hours maybe that is why i lost the basic terms of GST….or i should get my tea with a break and rethink to get the sense behind these terms.
    but thanks anyways….
    cheers

    The BAS covers more than just GST collected less GST paid. It also includes PAYG tax deducted from payroll and some other taxes (FBT, Wine Equalisation tax).

    Annual GST is a summary of your BASs for the year.

    The ATO has info on BASs here: http://www.ato.gov.au/businesses/pathway.aspx?sid=42&pc=001/003/099&mfp=001/003&mnu=44961#001_003_099

    Hope this helps

    #1059946
    King
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    The BAS covers more than just GST collected less GST paid. It also includes PAYG tax deducted from payroll and some other taxes (FBT, Wine Equalisation tax)

    No it does not.

    BAS is just about GST – this is the worksheet if you wish to point out where PAYG etc comes in.

    The PAYG is a different document entirely.

    #1059947
    MyGreatIdea
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    sorry King, but actually it does :)

    The worksheet you’ve attached is simply for the GST calculation portion of the BAS. The ATO customises BAS forms for each business. For example, if you have no employees, no FBT, no company tax to pre-pay, then your form will simply show the GST components to complete. This could be why you haven’t seen PAYG etc on the BAS return?

    Wendy

    #1059948
    King
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    I have a separate form for PAYG (covering me)

    #1059949
    tahera
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    • Total posts: 20
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    Thanks to everyone for talking time out to reply.
    It seems i am clear now on GST component (BAS).

    In terms of Annual GST, is this overall BAS, or its only for those business who report BAS yearly (which i don’t think so).
    Am i right thinking that Annual GST is the same as end of financial year reconciliation? if there are any adjustment during the year we clear that in regards to GST?

    Also can we include any invoice from previous dates into any quarter, like someone asked me that he has some invoices which he did not include in his old BAS, can he include it into his current one?

    Can someone also please confirm if Business return is also needed after even if you did all your BAS by the business and if so is this the same as Individual tax return and company return which only TAX agent can do not BAS Agent?

    thank you

    #1059950
    tahera
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    King, post: 73980 wrote:
    No it does not.

    BAS is just about GST – this is the worksheet if you wish to point out where PAYG etc comes in.

    The PAYG is a different document entirely.

    Hey king, i could not find the PAYG on the worksheet you attached?

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