Business Activity Statement Presentation

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Business Activity Statement Presentation

  1. 1. Business Activity Statement (BAS ) & Goods & Services Tax (GST) By, RAJEEV NEELAY
  2. 2. What is BAS? <ul><li>The Business Activity Statement (BAS) is a form submitted to the Australian Taxation Office (ATO) by all Australian businesses to report their taxation obligations. </li></ul>
  3. 3. What Does it Include ? <ul><li>Business Activity statement Include : - </li></ul><ul><li>Goods & Services Tax (GST). </li></ul><ul><li>Pay As You Go Withholding (PAYGW). </li></ul><ul><li>Pay As You Go Installments (PAYGI). </li></ul><ul><li>Fringe Benefits Tax (FBT). </li></ul><ul><li>Wine Equalization Tax (WET). </li></ul><ul><li>Luxury Car Tax (LCT). </li></ul>
  4. 4. Who should use a Business Activity Statement? <ul><li>All entities with any of the tax obligations and entitlements (i.e. – GST, Wine equalization tax , Luxury car tax , PAYG , FBT ) must complete an activity statement at the end of each tax period or reporting period. </li></ul><ul><li>If you do not have a GST , Wine equalization tax , Luxury car tax the ATO will send you an Installment Activity Statement. </li></ul>
  5. 5. Payment Period <ul><li>Payment period will be one of the following . </li></ul><ul><li>Monthly. </li></ul><ul><li>Quarterly. </li></ul><ul><li>Annual . </li></ul>
  6. 6. Lodging BAS <ul><li>If your annual turnover is less than $20 million, you can lodge your activity statement quarterly or monthly to report your GST </li></ul><ul><li>Quarterly tax periods are periods of three months ending on . </li></ul><ul><li>30 September. </li></ul><ul><li>31 December. </li></ul><ul><li>31 March. </li></ul><ul><li>30 June . </li></ul><ul><li>Monthly tax periods end on the last day of each calendar month. </li></ul>
  7. 8. Index <ul><li>Goods & Services Tax (GST). </li></ul><ul><li>Pay As You Go Withholding (PAYGW). </li></ul><ul><li>Pay As You Go Installments (PAYGI). </li></ul><ul><li>Fringe Benefits Tax (FBT). </li></ul><ul><li>Wine Equalization Tax (WET). </li></ul><ul><li>Luxury Car Tax (LCT). </li></ul>
  8. 9. Background of Goods & Services Tax <ul><li>The Goods and Services Tax (GST) is a Value Added Tax (VAT) on the supply of goods and services in Australia. The GST rate is 10% in Australia . </li></ul><ul><li>It was introduced by the Federal Government From 1 July 2000. </li></ul><ul><li>Prior to the GST, Australia operated a Wholesale Sales Tax (WST) which imposed a tax on wholesales of goods. </li></ul>
  9. 10. How it Applies <ul><li>GST will be charged on the supply of all goods and services where the supply is made by a business . </li></ul>
  10. 11. Registration for GST? <ul><li>You must register for GST if you are in business and your GST turnover is at or above the registration turnover threshold of $75,000 per year. </li></ul><ul><li>You may choose to register if the turnover of your enterprise is below the registration turnover threshold. </li></ul>
  11. 12. GST-free supply <ul><li>The following are examples of GST-free supplies . </li></ul><ul><li>Most health and medical care services. </li></ul><ul><li>Most educational services . </li></ul><ul><li>Most food for human consumption (other than prepared foods, confectionary, snacks, ice-cream, biscuits, alcohol, soft-drinks and certain other drinks). </li></ul>
  12. 13. Cont…. <ul><li>International travel and transport. </li></ul><ul><li>Certain dealings with land. </li></ul><ul><li>Exports of goods or services or other things if certain requirements are met. </li></ul><ul><li>Certain activities of charities and related bodies . </li></ul>
  13. 14. Calculation of GST <ul><li>1. General Ledger </li></ul><ul><li>2. BAS & IAS Statement </li></ul><ul><li>3. Journal Entries </li></ul>
  14. 15. Index <ul><li>Goods & Services Tax (GST). </li></ul><ul><li>Pay As You Go Withholding (PAYGW). </li></ul><ul><li>Pay As You Go Installments (PAYGI). </li></ul><ul><li>Fringe Benefits Tax (FBT). </li></ul><ul><li>Wine Equalization Tax (WET). </li></ul><ul><li>Luxury Car Tax (LCT). </li></ul>
  15. 16. PAYG System PAYG PAYG Withholding PAYG Installments Means paying tax you withhold from payments to others (i.e. Salaries & Wages) Means paying tax on your own Income (i.e. Investment & Business Income) Regular reporting and remitting of tax to ATO
  16. 17. Index <ul><li>Goods & Services Tax (GST). </li></ul><ul><li>Pay As You Go Withholding (PAYGW). </li></ul><ul><li>Pay As You Go Installments (PAYGI). </li></ul><ul><li>Fringe Benefits Tax (FBT). </li></ul><ul><li>Wine Equalization Tax (WET). </li></ul><ul><li>Luxury Car Tax (LCT). </li></ul>
  17. 18. What is FBT ? <ul><li>Fringe benefits tax (FBT) is a tax payable by employers who provide fringe benefits to their employees or to associates of their employees (typically family members). </li></ul><ul><li>This is separate from Income Tax. </li></ul><ul><li>Even if your organization is exempt from income tax, it may still have to pay FBT . </li></ul>
  18. 19. Tax Rate & Example <ul><li>FBT is paid by the employer at a rate of 46.5% </li></ul><ul><li>Marginal income tax rate (45%) </li></ul><ul><li>Plus the Medicare Levy (1.5%) </li></ul><ul><li>Example – </li></ul><ul><li>If the FBT is $50,000 </li></ul><ul><li>Rate of Tax 46.5% </li></ul><ul><li> $50,000 x 46.5% </li></ul><ul><li>Total Tax = $23250 </li></ul>
  19. 20. How to calculate the taxable value of a car fringe benefit ? <ul><li>There are two methods for calculating Fringe Benefits Tax. </li></ul><ul><li>Statutory formula method (Based on the car’s cost price). </li></ul><ul><li>Operating cost method (Based on the costs of operating the car). </li></ul>
  20. 21. Index <ul><li>Goods & Services Tax (GST). </li></ul><ul><li>Pay As You Go Withholding (PAYGW). </li></ul><ul><li>Pay As You Go Installments (PAYGI). </li></ul><ul><li>Fringe Benefits Tax (FBT). </li></ul><ul><li>Wine Equalization Tax (WET). </li></ul><ul><li>Luxury Car Tax (LCT). </li></ul>
  21. 22. What is wine equalization tax? <ul><li>Wine equalization tax (WET) is a value-based tax which is applied to wine consumed in Australia. </li></ul><ul><li>It applies to assessable dealings with wine (unless an exemption applies) which include wholesale sales, untaxed retail sales and applications to own use . </li></ul><ul><li>The WET rate is 29 per cent of the wholesale sale value. </li></ul>
  22. 23. Index <ul><li>Goods & Services Tax (GST). </li></ul><ul><li>Pay As You Go Withholding (PAYGW). </li></ul><ul><li>Pay As You Go Installments (PAYGI). </li></ul><ul><li>Fringe Benefits Tax (FBT). </li></ul><ul><li>Wine Equalization Tax (WET). </li></ul><ul><li>Luxury Car Tax (LCT). </li></ul>
  23. 24. Luxury Car Tax <ul><li>Luxury car tax (LCT) applies to certain vehicles over the luxury car tax threshold ($57,180 for the 2008–09 year). </li></ul><ul><li>The Government announced in the 2008–09 Budget that it would increase the LCT rate from 25% to 33% from 1 July 2008. </li></ul>
  24. 25. Concessions on LCT: <ul><li>In certain circumstances primary producers and tourism operators will be able to claim a refund of the additional 8% LCT (to a maximum of $3,000) on certain 4 wheel drive or all wheel drive vehicles. </li></ul><ul><li>LCT will not apply to certain fuel efficient cars under the fuel efficient car limit ($75,000 for the 2008–09 year) from 3 October 2008. LCT at the rate of 33% will apply to vehicles above this threshold. </li></ul>
  25. 26. Cont…. <ul><li>25% LCT will apply to contracts entered into for purchases or imports of a luxury car before 7.30pm Australian Eastern Standard Time (AEST) on 13 May 2008 (the date of the Federal Budget announcement to increase the LCT rate). </li></ul>

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