Common BAS errors

1. Businesses that are registered or required to be registered for Goods and Services Tax [GST] and PAYG Withholding need to prepare a BAS.
2. Activity statements are personalised to each business and any options which they may have chosen at the time of registration. Items which taxpayers may need to disclose include:
   
   • GST;
   • PAYG Instalments;
   • PAYG Withholding;
   • Wine equalisation tax;
   • Fringe benefits tax; and
   • Luxury car tax.
   
3. The Tax Office has published a list of common errors made by businesses when submitting their BAS and provided explanations on how to rectify these errors.
4. Some of the common mistakes frequently made include:
   

   Problem	Solution
   Including wages and superannuation contributions as purchases at label G11.	Wages should be reported at W1. Superannuation contributions do not need to be disclosed.
   Including dollars and cents.	Only whole dollars need to be shown on the BAS. Avoid cents, decimals, commas, symbols or words.
   Not including the sale of a business.	The sale price of a business, including any GST, must be reported at G1. When it is a GST-free sale of a going concern, the amounts still need to be disclosed at G1 and at G3. If it is taxable, include GST at 1A.
   Not reporting amounts withheld from payments when an ABN has not been quoted.	If an ABN has not been quoted, you must report amounts withheld from payments at label W4.
   Lodging activity statements after your FBT return.	If you pay FBT by instalments, all BASs must be lodged inclusive of the BAS for the FBT year ending March 31 before your FBT return is lodged. Allows undelayed processing of your FBT account.

   
   Click here to access the full list of common BAS errors.

Common BAS errors

Businesses that are registered or required to be registered for Goods and Services Tax [GST] and PAYG Withholding need to prepare Business Activity Statements (BAS) periodically to report and pay a number of their tax obligations.

 

Activity statements are personalised to each business and any options which they may have chosen at the time of registration. Items which taxpayers may need to disclose include:

• GST;
• PAYG Instalments;
• PAYG Withholding;
• Fringe benefits tax; and
• Luxury car tax

The Tax Office has published a list of common errors made by businesses when submitting their BAS and provided explanations on how to rectify these errors.

 

Some of the common mistakes frequently made include:

 

Problem	Solution
Including wages and superannuation contributions as purchases at label G11.	Wages should be reported at W1. Superannuation contributions do not need to be disclosed.
Including dollars and cents.	Only whole dollars need to be shown on the BAS. Avoid cents, decimals, commas, symbols or words.
Not including the sale of a business.	The sale price of a business, including any GST, must be reported at G1. When it is a GST-free sale of a going concern, the amounts still need to be disclosed at G3. If it is taxable, include GST at 1A.
Claiming GST credits for purchases used for private purposes.	GST can only be claimed for business expenses. If a purchase was used for both business and private purposes, GST credits need to be apportioned.
Leaving the variation code unexplained.	When varying a GST or PAYG instalment amount, a reason for the variation must be disclosed at G24 (for GST) or T4 (for PAYG).

 

The Tax Office has also released a 2 minute video on how to avoid these common mistakes when completing your BAS. Click here to access the video.

Click here to access the full list of common BAS errors.