As the fiscal year draws to a close, it is imperative for businesses to uphold their commitments, specifically in accurately and punctually lodging their business activity statements (BAS). At Accounts Nextgen, we recognize the significance of adhering to deadlines and delivering precise financial information. In this article, we will elucidate the crucial dates for BAS lodgment and address prevalent queries concerning errors and amendments.
Failure to lodge your BAS promptly can lead to penalties, the magnitude of which is contingent on your entity’s size and the duration since the lodgment deadline.
- Small entities: Incur a penalty of one unit for every 28 days (or part there of) that the return or statement is overdue, capped at 5 penalty units.
- Medium entities: Face double the penalty units, categorized as medium withholders for PAYG withholding or entities with assessable income or current GST turnover exceeding $1 million and less than $20 million.
- Large entities: Encounter a penalty multiplied by five, defined as large withholders for PAYG withholding or entities with assessable income or current GST turnover of $20 million or more.
- Significant entities: For significant global entities, the base penalty amount is multiplied by 500, pertaining to failure to lodge (FTL) penalties for those that neglect to submit a required form after 1 July 2017.
Q: How can I rectify mistakes on my BAS?
A: Prompt rectification of errors on your BAS is crucial. Differentiating between correcting mistakes and making adjustments is vital.
- Mistakes: Inaccurate amounts reported during submission, such as typographical errors or misclassification of taxable and GST-free sales or purchases, can be corrected in the next BAS or by modifying the original BAS, depending on the type and extent of the error.
- Adjustments: If accurate reporting was initially made but subsequent events alter the reported GST amounts, adjustments can be made in the next BAS. However, significant changes may necessitate the filing of an amendment form.
Q: Can I apply for a two-week lodgement concession for my activity statements?
A: The two-week lodgement concession is applicable to activity statements for standard quarters ending 30 September, 31 March, and 30 June with an original due date of the 28th of the subsequent month. Nevertheless, it does not apply to monthly activity statements, monthly GST payers with quarterly PAYG instalments, head companies of consolidated groups, large business clients with substituted accounting periods, or clients with a different original due date.
At Accounts Nextgen, our commitment lies in assisting businesses with their accounting requirements. As the lodgment deadline for the final BAS approaches, it is crucial to stay well-informed about significant dates and understand the process of rectifying any errors. Should you require professional accounting services or have inquiries regarding BAS lodgment, feel free to reach out to us. We are dedicated to helping you ensure compliance and maintain precise financial records for your business.