In the agricultural industry a little planning can make things much easier at BAS time. Record keeping and accurate bookkeeping will make BAS preparation and lodgement flow smoothly, and the process will quickly become stress free.
BAS Quarterly Periods
The Quarterly BAS Periods and Lodgement Dates for 2018 are:
Quarter 3 January to March 2018 28 April 2018
Quarter 4 April to June 2018 28 July 2018
Quarter 1 July to September 2018 28 October 2018
Quarter 2 October to December 2018 28 February 2019
Tax invoices, purchases orders, and receipts should be kept on file. This includes any purchases of livestock, machinery, wine making products, crops, fertilisers, and sprays. Records can include tax invoices, receipts and bank statements.
If you trade as a Sole Trader or Partnership you are required to keep your records for 5 years from date of lodgement, Companies are required to keep their records for 7 years from date of lodgement.
Cloud based software makes it easy to track your software and prepare your quarterly BAS returns. We work with popular accounting software systems including Xero and MYOB. As your accountant, Murray Nankivell can log into the software to prepare your BAS, check entries, run reports and more. Electronically scanning receipts into your accounting software is possible - and highly recommended!
Simple BAS Lodgement
If you have a GST turnover of less than 10 million dollars there is less GST information for you to report on for your BAS.
You only need to report the following labels:
- G1 Total Sales
- 1A GST on Sales
- 1B GST on purchases
There is no longer a requirement to report:
- G2 Export sales
- G3 GST free sales
- G10 Capital purchase
- G11 Non-capital purchases
Pay as You Go income tax instalments are calculated and lodged at the same time as your BAS. All BAS and PAYG instalments should be lodged before your annual return is lodged. If your income differs significantly each quarter, the PAYG instalments can be adjusted to reflect this. Speak to us for more information on how to best organise PAYG instalments for your rural property.
Timing Your Purchases
Timing your purchases will make for better cashflow for your agricultural business if feasible. Of course, it is not always possible to purchase new equipment to fall in line with the ATO BAS lodgement periods, particularly in the case of machinery breakdowns.
If you are planning new purchases bear in mind the timeframe that it takes to claim back your GST. For example, if you buy new machinery on 5 April 2018 for $75,000 excluding GST, you will need to pay $7,500 of GST (10%).
This $7,500 cannot be claimed until lodging the April to June 2018 BAS. If the machinery were purchased on 27 June 2018 however there would be a lesser waiting period to claim back the GST that you have spent.
Fuel Tax Credits
Keep records showing the type and amount of fuel purchased and record for what purpose the fuel was used and in which vehicle.
For example, was the fuel used while travelling on a public road, for tending crops or clearing land?
Wine Equalisation Tax (WET)
If you are a wine manufacturer you will usually have a Wine Equalisation Tax liability. You will be required to collect this tax and pay the ATO if you supply wine within Australia.
A little preparation each week can save you hours, or even days of preparation at BAS time. For more information on simple BAS preparation for the agricultural industry, contact us today. We have been helping those in agriculture to minimise their tax and improve their profit for almost 80 years.
We're all about helping people succeed financially and in all areas of life. If you, a friend or loved one would like additional advice on how you can make BAS time simple, please email me on firstname.lastname@example.org or phone us on 8765 7777.
About the Author - Kirsty Grady