Small Businesses vulnerable on GST Posted on November 22, 2019
The BAS (Business Activity Statement) form is relatively simple to complete. Recent figures show that 50% of small businesses take care of it themselves. With recent legislation holding business directors personally liable for GST compliance, it is beneficial to seek the support of an accountant to check the details and navigate the complexity.
Figures by the ATO (2016-2017 data) show that 9 in 10 small businesses seek an accountant’s support for tax compliance and only 1 in 2 small businesses seek accountant’s help for BAS lodgements. This implies a potential underestimation of the complexity of GST compliance and may expose some small businesses in an audit.
If you aim to complete your BAS on behalf of your business, we recommend some upfront time with your accountant to thoroughly check GST compliance and liability.
Your GST reporting and payment cycle will be:
- Quarterly if your GST turnover is less than $20 million – next due date is 28 February
- Monthly if your GST turnover is $20 million or more – next due date is 21st of the month
- Annually if you are voluntarily registered for GST with a GST turnover under $75,000 ($150,000 for non-profits) – due date is 21 October.
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