2018 FINALIST

Accounting Firm of the Year

2018 FINALIST

Fast-Growing Firm of the Year

2018 FINALIST

Small Business Adviser of the Year

2018 FINALIST

Tax and Compliance Firm of the Year

Client Testimonial

In May 2017, we transitioned our day to day accounting to Accumulus Advisory to provide us with an external CFO function. Previously, we had managed our accounts in-house and financial information was, at best, approximate. Since Accumulus has managed our day to day and end of year accounting, our business has been transformed. We now have up to date information, which can be relied upon to be accurate, and know exactly how we are doing financially at any given time. The cost of this service is comparable to the cost of our previous accounting processes. Accumulus is responsive to our needs and our day-to-day contact is approachable, reliable and accurate. We would highly recommend this service to other businesses.

Stuart and Anjali Donaldson

Polyweld Pty Ltd

Leading Business Tax Experts In Melbourne

ACCUMULUS OFFERS THE FOLLOWING SERVICES

Leading Business Tax Experts In Melbourne

ACCUMULUS OFFERS THE FOLLOWING SERVICES

BAS, GST, IAS & PAYG

GST

Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. Generally, businesses and other organisations registered for GST will:

  • include GST in the price they charge for their goods and services
  • claim credits for the GST included in the price of goods and services they buy for their business.
If you run a business or other enterprise and have a GST turnover of $75,000 or more ($150,000 or more for non-profit organisations), or you provide taxi travel (including ride-sourcing) – you need to:

How GST works

If you are a business, you use a BAS to:

  • Report and pay the GST your business has collected
  • Claim GST credits.

Download HOW GST WORKS illustration

BAS

If you are a business registered for GST you need to lodge a business activity statement (BAS).

Your BAS will help you report and pay:

  • goods and services tax (GST)
  • pay as you go (PAYG) instalments
  • PAYG withholding tax
  • other taxes.

When we register you for an Australian business number (ABN) and GST, the Australian Taxation Office will send you a BAS when it is time to lodge.

  • You can lodge your BAS electronically, by mail or for nil lodgments on the phone. You can pay electronically, by mail or in person at Australia Post.
  • Lodging and paying your BAS on time helps your business run smoothly.

The due date for lodging and paying is displayed on your BAS. If the due date is on a weekend or public holiday, you can lodge and pay on the next business day.

Quarterly reporting

QuarterDue Date
Q1 - July, August & September 28 October
Q2 - October, November & December 28 February
Q3 - January, February & March 28 April
Q4 - April, May & June28 July

If you lodge via a tax agent you may get an additional 4 week extension for quarters 1,3 and 4.

PAYG

PAYG - or Pay As You Go - is a staff related tax, which means it is deducted from the gross wage of staff it is applicable on and submitted to the ATO by means of the BAS (discussed above) or IAS (see below). It is deducted as a certain percentage of the staff’s wage and paid to the ATO with your monthly or quarterly reports.

As an employer, you have a role to play in helping your payees meet their end-of-year tax liabilities. You do this by collecting pay as you go (PAYG) withholding amounts from payments you make to:
  • your employees
  • other workers, such as contractors, that you have voluntary agreements with
  • businesses that don't quote their Australian business number (ABN).

A few things to remember:

  • You must register for PAYG withholding before you are first required to withhold an amount from a payment.
  • If you cease to be an employer you should cancel your PAYG withholding registration.
  • Before you enter into a work agreement or contract, you need to check that the worker is legally allowed to work in Australia.
  • PAYG withholding is different to payroll tax. Payroll tax is a state tax.
    • As a payer, you may need to withhold amounts from payments you make to your workers, other businesses and other payees, and send the withheld amount to us.

Withholding by employers

Your withholding obligations depend on whether your worker is an employee or contractor. If your worker is:

  • an employee, you generally have to withhold amounts from payments you make to them
  • a contractor, you generally do not withhold amounts from payments you make to them (unless they request withholding by entering into a voluntary agreement with you).

To check if your worker is an employee or contractor, you need to review the whole working arrangement. The easiest way is to use our decision tool.

Employee/contractor decision tool

IAS

The taxation world is littered with acronyms and the IAS is one of them. But what does it mean?

An IAS or Instalment Activity Statement, is a form used by taxpayers who are not registered for Goods and Services Tax (GST). It is also the form required to be lodged by entities that prepare a quarterly Business Activity Statement, but are required to remit their Pay As You Go (PAYG) withholding tax on a monthly basis because they are a medium withholder.

The IAS is a pre-printed document issued by the Australian Taxation Office every month, which summarises the amounts of PAYG instalments, PAYG withholding and ABN withholding.

If you withhold less than $20k per year, you must do this every month. If the amount is in excess of this amount, it can be done through the BAS. Withholders of large amounts have to remit statement seven days after the payment of wages or fees.

Who uses Instalment Activity Statement?

If you own a business or are individual that deals with PAYG Instalments, PAYG withholding, and/or Fringe Benefit Tax Instalments, and you aren’t registered for the GST you will need to lodge IAS’s. There are instances, for example if you are a trustee, where you are required to fill out both business activity statements and IAS forms.

Where do I get the forms from?

The Australian Taxation Office will send all your IAS documents well ahead of completion deadline. This will allow you plenty of time to complete it and have it lodged before the due date. You will also notice that some parts of the form will have already been filled out with some of your personal information in order to save you some time.

Tips to stay on top of your obligations

  • Keep all your paperwork up to date and easily accessible
  • Even if there is nothing to report, you must still lodge your Instalment Activity Statement on time
  • Plan ahead of time and ensure your IAS is completed ahead of time
  • Make sure that you aren’t late with lodgement and/or payments to the ATO or you will be subject to late fees and charges
  • Make sure the form has been signed and dated before submitting your IAS
  • You only need to lodge a single copy of your IAS per reporting period
  • Contact the ATO and get them to send you out a new form if you make a mistake on your IAS
  • Keep copies of your IAS.

Getting the right advice

These recommendations will help you better understand your IAS obligations, but you could also take the simpler option of letting an accountant do it for you. Contact the Accumulus team TODAY to find out how we can tailor an affordable solution to your needs so you can concentrate on growing your business.

GST

Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. Generally, businesses and other organisations registered for GST will:

  • include GST in the price they charge for their goods and services
  • claim credits for the GST included in the price of goods and services they buy for their business.
If you run a business or other enterprise and have a GST turnover of $75,000 or more ($150,000 or more for non-profit organisations), or you provide taxi travel (including ride-sourcing) – you need to:

How GST works

If you are a business, you use a BAS to:

  • Report and pay the GST your business has collected
  • Claim GST credits.

Download HOW GST WORKS illustration

BAS

If you are a business registered for GST you need to lodge a business activity statement (BAS).

Your BAS will help you report and pay:

  • goods and services tax (GST)
  • pay as you go (PAYG) instalments
  • PAYG withholding tax
  • other taxes.

When we register you for an Australian business number (ABN) and GST, the Australian Taxation Office will send you a BAS when it is time to lodge.

  • You can lodge your BAS electronically, by mail or for nil lodgments on the phone. You can pay electronically, by mail or in person at Australia Post.
  • Lodging and paying your BAS on time helps your business run smoothly.

The due date for lodging and paying is displayed on your BAS. If the due date is on a weekend or public holiday, you can lodge and pay on the next business day.

Quarterly reporting

QuarterDue Date
Q1 - July, August & September 28 October
Q2 - October, November & December 28 February
Q3 - January, February & March 28 April
Q4 - April, May & June28 July

If you lodge via a tax agent you may get an additional 4 week extension for quarters 1,3 and 4.

PAYG

PAYG - or Pay As You Go - is a staff related tax, which means it is deducted from the gross wage of staff it is applicable on and submitted to the ATO by means of the BAS (discussed above) or IAS (see below). It is deducted as a certain percentage of the staff’s wage and paid to the ATO with your monthly or quarterly reports.

As an employer, you have a role to play in helping your payees meet their end-of-year tax liabilities. You do this by collecting pay as you go (PAYG) withholding amounts from payments you make to:
  • your employees
  • other workers, such as contractors, that you have voluntary agreements with
  • businesses that don't quote their Australian business number (ABN).

A few things to remember:

  • You must register for PAYG withholding before you are first required to withhold an amount from a payment.
  • If you cease to be an employer you should cancel your PAYG withholding registration.
  • Before you enter into a work agreement or contract, you need to check that the worker is legally allowed to work in Australia.
  • PAYG withholding is different to payroll tax. Payroll tax is a state tax.
    • As a payer, you may need to withhold amounts from payments you make to your workers, other businesses and other payees, and send the withheld amount to us.

Withholding by employers

Your withholding obligations depend on whether your worker is an employee or contractor. If your worker is:

  • an employee, you generally have to withhold amounts from payments you make to them
  • a contractor, you generally do not withhold amounts from payments you make to them (unless they request withholding by entering into a voluntary agreement with you).

To check if your worker is an employee or contractor, you need to review the whole working arrangement. The easiest way is to use our decision tool.

Employee/contractor decision tool

IAS

The taxation world is littered with acronyms and the IAS is one of them. But what does it mean?

An IAS or Instalment Activity Statement, is a form used by taxpayers who are not registered for Goods and Services Tax (GST). It is also the form required to be lodged by entities that prepare a quarterly Business Activity Statement, but are required to remit their Pay As You Go (PAYG) withholding tax on a monthly basis because they are a medium withholder.

The IAS is a pre-printed document issued by the Australian Taxation Office every month, which summarises the amounts of PAYG instalments, PAYG withholding and ABN withholding.

If you withhold less than $20k per year, you must do this every month. If the amount is in excess of this amount, it can be done through the BAS. Withholders of large amounts have to remit statement seven days after the payment of wages or fees.

Who uses Instalment Activity Statement?

If you own a business or are individual that deals with PAYG Instalments, PAYG withholding, and/or Fringe Benefit Tax Instalments, and you aren’t registered for the GST you will need to lodge IAS’s. There are instances, for example if you are a trustee, where you are required to fill out both business activity statements and IAS forms.

Where do I get the forms from?

The Australian Taxation Office will send all your IAS documents well ahead of completion deadline. This will allow you plenty of time to complete it and have it lodged before the due date. You will also notice that some parts of the form will have already been filled out with some of your personal information in order to save you some time.

Tips to stay on top of your obligations

  • Keep all your paperwork up to date and easily accessible
  • Even if there is nothing to report, you must still lodge your Instalment Activity Statement on time
  • Plan ahead of time and ensure your IAS is completed ahead of time
  • Make sure that you aren’t late with lodgement and/or payments to the ATO or you will be subject to late fees and charges
  • Make sure the form has been signed and dated before submitting your IAS
  • You only need to lodge a single copy of your IAS per reporting period
  • Contact the ATO and get them to send you out a new form if you make a mistake on your IAS
  • Keep copies of your IAS.

Getting the right advice

These recommendations will help you better understand your IAS obligations, but you could also take the simpler option of letting an accountant do it for you. Contact the Accumulus team TODAY to find out how we can tailor an affordable solution to your needs so you can concentrate on growing your business.

Let our experienced team help you
manage your business taxes this financial year

Proudly Serving Melbourne

Accumulus Advisory has been serving Melbourne for many years. Since opening we have been servicing many of Melbourne’s businesses with our accounting services. These services include tax planning, virtual CFO services, business coaching and advising. We have been servicing many businesses across the city with our accounting solutions, from the lawyers in the city to the small businesses down the road. Here at Accumulus Advisory, we have the skills to help you and your Melbourne business reach it’s full potential.