BAS Boo-boos And What To Do

‍If you’ve made a mistake on your Business ActivityStatement (BAS) – never fear, it is usually an easy fix! There’s always a few ways around it, depending on your circumstances so read on and see which might apply to you.

Paid too much GST?

It’s always nice when the mistake goes in your favour, and if you’ve noticed that you have overpaid GST on a previous BAS, the ATO gives you four years to correct it (from the date the incorrect BAS was lodged).Simply pick up the additional GST refund in a future BAS and the ATO will consider you all squared up.

Sometimes picking up the GST adjustment on a future BAS can be easier than amending a prior period BAS (more on this later) so when you do have this option, its usually the most simple option.  

Paid too little GST?

It happens, but it’s not the end of the world either. You’ll still need to make the adjustment on one of your nextBAS lodgements, but for this scenario it’s dependant on your turnover …

• If your annual turnover is less than $20 million, the adjustment must be made (and paid) within 18 months.

• If your annual turnover is MOREthan $20 million, the adjustment must be made (and paid) within 12 months of the mistake

Generally speaking it’s easier to correct a GST error on a later activity statement rather than revising the incorrect one, but it’s worth speaking with the Attune team if you’re in this situation to ensure you’re not liable for penalties or general interest charges before taking any serious action.

So, having said that we should briefly touch on …

Amending a prior period BAS

If you’ve fallen outside the adjustment period and you are required to amend a prior period BAS please reach out to the Attune team for assistance. It’s important to act fairly quickly after you realise there’s a need for adjustment.

If you have access to your statements online, you can follow the ATO instructions (here),but if there’s already a need for amendment it may be worth getting sound advice and help in doing what’s required rather than potentially creating further issues – it’s part of what we’re here for after all!  

In addition to that the ATO may impose general interest charges or penalties upon lodgement of the amended BAS, which we could assist you with navigating if the situation arises.

If you’re looking for tailored, strategic advice when it comes to your business and personal finances, or indeed an expert to manage them for you, give the Attune team a call on 1300 866113 or send us an email to start the conversation.

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