For most business owners, the document-related work seems to be more complex than running their businesses. The task of filing the BAS Returns is one of those important activities, and it is best handled by professional BAS returns services in Melbourne.Business Activity Statements are reports that you submit to the Australian Taxation Office (ATO) to report your business’s tax obligations. It includes GST, PAYG (Pay As You Go) withholding, and other related taxes. However, there have been some recent changes in the BAS returns, and if you lack proper knowledge, it can be challenging to keep up with the new requirements.
Things You Should Know About The New Changes in BAS Returns
Let us discuss the new changes in BAS returns and what you need to know to navigate them successfully. Simultaneously, let us also learn how professional BAS returns services in Melbourne can help:
1. Changes in the Reporting Frequency
The ATO has recently added changes in the reporting frequency for BAS Returns Services. Earlier, businesses that had an annual turnover of less than $20 million were required to submit their BAS returns on a quarterly basis. However, starting in 2021, businesses with an annual turnover that is less than $10 million will have to submit their BAS returns on a monthly basis. So, basically, businesses will have to report their GST, PAYG withholding, and other taxes every month instead of every quarter. To avoid errors, it is best to contact the experts at BAS Returns Services in Melbourne.
2. The Addition of Simpler BAS
Another crucial change in BAS returns is the introduction of Simpler BAS. It is a more streamlined version of the BAS return and will only require businesses to report their GST information. However, this change is strictly applicable to businesses with a turnover of less than $10 million. The ATO has introduced Simpler BAS to reduce the reporting burden on small businesses. These small businesses therefore can easily comply with their BAS obligations.
3. Changes in Reporting Methods
Changes have also been made to the way businesses can report their BAS returns. Previously, businesses could report their BAS returns through the ATO’s online portal, paper forms, or through their registered tax agent. Later, the businesses were enabled to report their BAS returns through the ATO’s online portal or through their registered tax agent. It was basically aimed at promoting digital channels and reducing the use of paper forms.
4. Changes in GST Calculation
Just the way the Simpler BAS has been introduced, there are also changes in GST calculation for businesses. Under Simpler BAS, businesses only reported their total sales and GST collected on sales. It has been declared that they will no longer need to report GST on purchases or export sales. However, it is still important for businesses to keep records of their GST on purchases and export sales for their tax obligations.
How The Cash Flow is Impacted
The drastic change in reporting frequency from quarterly to monthly has significantly impacted a business’s cash flow. Businesses are now making GST payments every month and it can be a strain on their cash flow. It is essential for businesses to plan and budget accordingly to avoid any financial crisis.
Why seek Professional Help from BAS Returns Services
Both big and small businesses can find it challenging to travel the difficulties of putting up with the new changes. Hence it is best to seek professional help from a registered tax agent and make sure that your BAS Returns Services are accurate and compliant with the ATO’s requirements.
If you want to avoid any potential penalties from the ATO, get in touch with Ezy Tax. We have knowledgeable and certified professionals who can help you in navigating through all changes and challenges in the process.
Contact us to get reliable and error-free BAS Returns Services in Melbourne today!