Itax Solutions ®
New Taxation Reporting System
Note for Feb 2001 changes and options See ATO Reference
What is an IAS ? This replaced the provisional tax system, basically requiring payment on account of business, partnership, trust or property income (rent, dividends or interest. Annual or quarterly statements are required with payment of an amount calculated by the ATO or varied by you.
How Does it apply to me ?
Threshold Amount for System to apply
If your last years tax was less than a threshold (call to check) you may not be caught by the system.
Lodgement of IAS may be Annual generally provided the person or entity is not registered for GST .
The Business Activity Statement incorporates GST-related information, various other taxes, including Luxury Car Tax, Fringe Benefits Tax, Wine Equalisation Tax and PAYG instalments and PAYG withholdings.
Threshold Amount for GST Registration - $ 50,000 Annual Turnover
BAS Lodgement Cycle Thresholds and Options
Accounting Method for GST
are due 21 days after the end of each instalment quarter during the income year.
Due dates, subject to available Tax Agent extensions :
(Extensions may apply but please check with this Firm)
BAS Basic Preparation Notes
Goods and Services Tax
Input tax credits are only available when a tax invoice is held.
If the entity has elected to adopt accruals basis, GST must be remitted in relation to any supplies where an invoice has been issued, or any consideration has been received for the supply. Taxpayers reporting on a cash basis will remit GST in relation to any cash received within a period in relation to taxable supplies.
Generally, small and medium withholders will pay PAYG withholdings electronically, unless other arrangements have been made. Large withholders must pay PAYG withholdings electronically.
The first important step is to calculate instalment income.
If a partner in a partnership, or a beneficiary of a trust be very careful in applying or varying the ATO rate correctly, as the concept of instalment income is not straight-forward. -Call for help.
Penalties apply when a varied rate is used, and it is less than 85% of the lower of the rate provided by the Tax Office and a ‘benchmark rate’.
instalments will appear on quarterly BASs only. Taxpayers that are required to lodge a BAS on a monthly basis will report PAYG instalments on every third BAS.
Taxpayers that are required to pay PAYG instalments and are not registered for GST will be required to complete an Instalment Activity Statement (IAS).
Fringe Benefits Tax instalments
Boxes beginning with ‘F’ represent the Fringe Benefits Tax (FBT) section of the BAS. The Fringe Benefits Tax instalments section must be completed by taxpayers with an annual FBT liability exceeding $3,000. Taxpayers required to lodge monthly BASs will report their FBT liabilities on every third BAS.
Changes to PAYG and GST Announced in February 2001
Please see "Overview of Changes to PAYG and GST"
Australian Taxation Office website www.ato.gov.au
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questions or comments about this web site.