Tax guide: Managing BAS & PAYG

BAS is a form that businesses in Australia use to report and pay a number of tax obligations to the Australian Taxation Office (ATO). It includes reporting on GST, PAYG withholding tax, and other tax obligations.

Estimating BAS involves calculating your GST liability based on your sales and purchases for a specific period (quarterly for most businesses). You need to total the GST you’ve collected on sales (output tax) and deduct the GST you’ve paid on purchases (input tax credits). Sole traders can use accounting software like Sole to automatically generate BAS reports, simplifying the process and ensuring accuracy in their tax reporting.

PAYG (Pay As You Go) instalments are quarterly payments made towards your expected income tax liability. As a sole trader, you estimate your year’s income and pay the ATO’s instalments. These payments help you manage your tax obligations throughout the year and avoid a large tax bill at EOFY (End of Financial Year).

Sole automates BAS preparation by integrating GST tracking into its accounting and business management platform. By accurately recording and categorizing GST transactions throughout the year, Sole simplifies BAS reporting. Users can generate detailed GST reports and easily transfer data to the ATO’s BAS portal, ensuring compliance and efficiency.