Business in Australia (ABN):: Difference Between BAS v IAS

Hello, this is your tax accountant, P&C Tax Professionals.

I’m sure many of you have heard of the term Business Activity Statement (BAS) and/or Instalment Activity Statement (IAS), especially if you are currently managing and operating a business. In today’s blog post, we will seek to provide you with a brief overview of the difference between BAS and IAS by going through each of these terms individually.

What is a Business Activity Statement (BAS)?

If you are a business that is registered for GST, you are required to lodge a business activity statement (BAS) by the specified due date which depends on the business’ GST turnover.

Basically, your BAS will assist you in reporting and paying your:

> Goods and Services Tax (GST)

> Pay As You Go (PAYG) instalments

> PAYG withholding tax, as well as

> other taxes such as luxury car tax, wine equalisation tax, and fuel tax credits.

So, this is how it works: when you initially apply and register for an Australian Business Number (ABN) and GST, the ATO will automatically send you a BAS report when the time comes to lodge your BAS for the relevant period. Your BAS reports will be generated and available to view through the ATO online services portal.

Even if you have nothing to report for the relevant period, you would still need to lodge your BAS but instead as a nil BAS.

Your GST reporting and payment cycle will be based on your GST turnover as follows:

> Quarterly – if GST turnover is <$20 million and you have not been told to report monthly

> Monthly – if GST turnover is >$20 million

> Annually – if you have voluntarily registered for GST which means that your GST turnover is <$75,000 ($150,000 for not-for-profit organisations).

What is an Instalment Activity Statement (IAS)?

An instalment Activity Statement (IAS) is a report that is generated by the ATO for those of you who are not registered for GST but who are required to report PAYG instalments, PAYG Withholding, ABN Withholding, and/or FBT Instalments.

If we compare this with the BAS, we can describe BAS as a more comprehensive statement that covers multiple tax reporting requirements, while IAS is focused mainly on the PAYG instalments.

Therefore, if you are in need of assistance with getting your BAS and/or IAS sorted out, you should consult with a registered tax/BAS agent (such as P&C Tax Professionals) who will be able to assist you in lodging your activity statements. For additional enquiries or questions, please do not hesitate to contact us via our official Facebook Page (P&C Tax Professionals – Australia) or alternatively, send us an email to pnctax@naver.com.

Thank you and bye for now!