What is a BAS Agent?

If you have owned a business before, you have likely heard of a BAS Agent. BAS Agents assist with your BAS when required. But what do they actually do?

For further information regarding BAS Agents, as well as BAS services that we offer on the Sunshine Coast, give Bottom Line Control a call on (07) 5471 7077.

What does BAS stand for?

BAS stands for ‘Business Activity Statement’.

What is a BAS?

A Business Activity Statement helps to both report and pay a business’:

Goods and Services Tax (GST).
Pay As You Go (PAYG) instalments.
PAYG withholding tax.
Other taxes.

Learn more about BAS on the Australian Taxation Office site - ato.gov.au

What is a BAS Agent?

A BAS Agent is a fully licenced and registered professional who assists with BAS services.

To become a BAS Agent, you must apply to the Tax Practitioners Board (TPB) and pay a registration fee. If you are approved, your registration period will be for a minimum period of 3 (three) years.

What does a BAS Agent do?

A BAS Agent can advise a client, provide various levels of information and/or can represent a client to the Australian Taxation Office in relation to a range of BAS services. These include:

GST.
Payroll, including the withholding of tax amounts and associated reporting requirements.
Other PAYG Withholding amounts such as no ABN, Interest & Dividend.
Payment of income tax via PAYG Instalments.
Wine Tax, Fuel Tax, and Luxury Car Tax.
Fringe Benefits Tax (FBT) payments.
Taxable Payments Annual Reporting system.
The Superannuation Guarantee system.

BAS Agents can also assist with the design, setup and implementation of business compliance systems, advise how various relevant areas of law affect them and review client operations in this regard to ensure compliance.

Why engage a BAS Agent?

Although you can do your BAS yourself, there are a range of benefits in hiring a BAS Agent to complete your BAS for you:

They are educated on the relevant regulations and legislation when it comes to your BAS.
They have experience and knowledge in preparing documentation effectively and efficiently.
They know how to check that your BAS is correct and everything has been reconciled correctly, including GST, PAYG, wages, and superannuation.
They are required to complete ongoing study and education to remain registered,
If you lodge your BAS and it is incorrect, you can potentially be fined. BAS Agents are however covered by the Safe Harbour laws, adding extra protection.
They must abide by a Code of Conduct, ensuring they are professionals, confidential, honest, competent and independent. You can report a BAS Agent to the TPB if you believe they are breaching this Code.
They are required to have minimum qualifications, including extensive hours of experience, proper insurance, professional membership and ongoing study.
They get a longer time to lodge documents than you do alone.

Can a bookkeeper help with BAS?

A bookkeeper can not assist with BAS services unless they are appropriately registered and licenced. If a bookkeeper is a registered BAS Agent, they can assist with your BAS services legally.

Examples of BAS services

Examples of BAS services include:

Applying to the Registrar for an ABN on behalf of a client.
Coding transactions, tax invoices and transferring data onto a computer program for clients through processes that require the interpretation or application of a BAS provision.
Confirming figures to be included on a client’s activity statement.
Completing activity statements on behalf of an entity or instructing the entity which figures to include.
Providing advice about or confirming the withholding tax obligations for the employees of a client.
Services declared to be a BAS service by way of a legislative instrument issued by the TPB.
Preparing and providing an income statement that may include reportable fringe benefits amounts and the reportable employer superannuation contributions.
Registering or providing advice on registration for GST or PAYG withholding.
Services under the Superannuation Guarantee (Administration) Act 1992 to the extent that they relate to a payroll function or payments to contractors.
Determining and reporting the superannuation guarantee shortfall and associated administrative fees.
Dealing with superannuation payments made through a clearing house.
Completing and lodging the Taxable payments annual report to the ATO on behalf of a client.
Sending a TFN declaration to the Commissioner on behalf of a client.
Providing a payroll service which involves interpreting and applying a BAS provision, including reporting of employee payroll information through the use of STP enabled software.
Undertaking a payroll compliance review, providing an assessment and/or opinion whether the client is compliant with one or more BAS provisions.
Determining eligibility, providing advice and assisting eligible clients to elect to participate in the JobKeeper Payments scheme.
Determining eligibility, providing advice and assisting eligible clients in relation to their Cashflow boost entitlements.

Services that are not a tax agent service of BAS service include:

Installing computer accounting software without determining default GST and other codes tailored to the client.
Coding transactions, tax invoices and transferring data onto a computer program for clients through processes that do not require the interpretation or application of a BAS provision.
General training in relation to the use of computerised accounting software not related to client's particular circumstances.
Preparing bank reconciliations.
Entering data without involvement in or calculation of figures to be included on a client's activity statement.
Transmitting data to the Commissioner through single touch payroll (STP) enabled software, where the data transmission does not require the interpretation or application of a BAS provision.

This BAS services list is courtesy of the Tax Practitioners Board.