Detailed Examination of BAS, PAYG, and GST: A Finance Assignment

This assignment provides a comprehensive analysis of Business Activity Statements (BAS), PAYG instalments, and GST regulations. It includes a GST worksheet with calculations for various sales and purchases, a lodgement schedule for BAS with due dates and agent concessions, and a detailed explanation of monthly PAYG instalments, including a weekly net pay calculation and a PAYG instalment summary. The assignment further explores the importance of staying updated with GST legislations, outlining research methods and professional consultations for staying informed about changes in the Australian tax system. The document references relevant literature on tax avoidance, pension reform, and entrepreneurship dynamics, offering a practical understanding of financial reporting and tax compliance.

CARRY OUT BUSINESS
ACTIVITY AND
INSTALMENTS ACTIVITY
TASKS

TABLE OF CONTENTS
QUESTION 1.............................................................................................................................1
GST Worksheet for Business activity statements..................................................................1
Lodgement schedule for BAS................................................................................................3
QUESTION 2.............................................................................................................................5
Monthly PAYG instalment.....................................................................................................5
Lodgement requirements of PAYG section in BAS...............................................................6
QUESTION 3.............................................................................................................................7
How to keep up to date with the changes takes places in the legislations of Goods and
services tax, reporting authority. What kind of research conducted by an individual and
consultation with the professional..........................................................................................7
REFERENCES...........................................................................................................................9

QUESTION 1
GST Worksheet for Business activity statements
Particulars G1 G2 G3 G4 G5 G6
G
7 G8 G9
Sales of goods in
Australia
19192
7.00
Freight on domestic
Sales
5450.0
0
Sales to Argentina
20659.
00 20659
International freight
and insurance 0n
exports
1010.0
0
1010
.00
Domestic Freight on
export to Argentina
&Portugal 555.00 555
Service fees earned in
Australia
13218.
00
Residential rent
received
10588.
00
10588
.00
Sales of old Furniture
10984.
00
Interest received on
investments from
CIT bank
1220.0
0
1220.
00
Sale of machinery
6421.0
0
Shop rent received
37223.
00
Sales to Uruguay
25474.
00 27877
Repairs to goods
returned to customer
in Argentina 780.00
780.0
0
Deposit received in
advance
3258.0
0 4800
Total
32876
7.00
49871
.00
1010
.00
16608
.0
67489
.00
2612
78
29
7
2615
75
237
80
(G10+G1
1)
(G13+G1
4+G15)
(G12-
G16)
(G17+
G18)
G19
/11
G10 G11 G12
G
13
G1
4
G
15 G16 G17
G
1
8 G19 G20
Purchase of Trading
Stock
112
897
17
37
Purchase of new
Motor Vehicle
2408
7.74
39
21
1

Residential Rent
(Expense) 9577
95
77
office rental
2986
1
Business Journal
Subscription 239
Interest Paid on
Mortgage
1669
3
16
69
3
Bank Fees 2356
23
56
Purchase of new
office Equipment
221
20
New Motor Vehicle
Insurance 692 55
Electricity Expense
1146
9
Delivery Truck
Repair
221
8
New Motor Vehicle
Repair
135
8 0
Delievery Truck
Insurance 3292
Water Rates 4124
41
24
Land Rates 3554
35
54
Parking Fines 88 88
Telephone
Expenses
1354
0
Building Insurance 3536
Office Stationery
Purchased
331
1
Advertising
expenses
2989
8
Drawings
1000
0
Credit Card
merchant fees 1890
Returned outwards
37
6
Wages and salaries
2309
06
141
904
3958
02.7
5377
06.7
95
77
28
84
0
40
65 42482
495
225
49522
5
450
20
Adjustments Increases Decrease
Sales Return 780
Discount Received 1737
Debtor Bankrupt 2380
2

Purchases for personal use 3921.26
good return 376
2113 7081.26
-4968.26
Lodgement schedule for BAS
Due date for lodging the business activity statements by an individual in a particular
financial year as specified due date is to be followed by an individual. Any due date lies on
public holiday, and then an individual can lodge the return on the succeeding business day as
this relief is given to all the users (Biddle, Fels & Sinning, 2017). Two kinds of reporting a
mode of business activity statements has available for an individual such as quarterly returns
or monthly returns.
Quarter Due date
July, August and September 28 October
October, November and December 28 February
January, February and March 28 April
April, May and June 28 July
Another option of return filling available with an individual is of monthly reporting
business activity statements by preparing activity statements of the business on 21st day of the
month succeeding the taxable period. Special option available for association bodies under
the deferral option on their December activity statement of the business concern will be
issued on 21st February as additional option to pay the return after monthly due date of 21st
day of the month after the taxable period (Fullarton, 2017).
Under the special program an individual has one option to lodge the business returns
by filing their business activity statements as the agent of the business owner get concessional
due dates while paying the returns. An agent is a person who acts on the behalf of the owner
of the firm as the owner of the firm gives written consent to other individual to act in their
own place in absence of the owner itself. Agent will enter with the mutual agreement with the
owner of the firm to take any decisions of selling, purchasing of properties, signing business
papers as the enterprise owner gives signing authority to act in the favour of the owner to
manage and supervise the business in the absence of the owner. As the agent gets all the
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powers and duties to act on the behalf of the owner, Australian taxation officer grants special
power in the firm of concessional due dates for filling the business activity statements
(Anderson, Ramsay, Welsh & Hedges, 2017).
One of the option available for normal business owner is to file their business return
using monthly option on the 21st of the following month as being an agent of an entity they
are not getting any additional right as the business owner and an agent both can file their
return electronically using the same due date. In December activity statement the due date is
21st January but an agent can file their return on 21st February by availing their special benefit
(Bateman & Liu, 2017).
There are real benefits an agent can get to pay the business activity statements using
quarterly returns are mention as below:
Quarterly Lodgement Original due date BAS concessional due date
for agent
Quarter 4
2016-17
28 July 2017 25 August 2017
Quarter 1
2017-18
28 October 2017 25 November 2017
Quarter 2
2017-18
28 February 2018 Not available
Quarter 3
2017-18
28 April 2018 26 May 2018
Quarter 4
2017-18
28 July 2018 25 August 2018
QUESTION 2
Monthly PAYG instalment
Weekly net pay calculation
Particulars Gross pay Tax Help Offset
Total
WHO
Net
Pay
G. Adelle 1491 330 119.28 1020 -570 2061
A. Kelim 1954 433 156.32 0 589 1365
M. Dower 3693 818 0 0 818 2875
M. Billsby 964 214 0 0 214 750
4

C. Adriano 1430 317 114.4 0 431 999
M. Lophe 3581 794 0 1579 -785 4366
R. Quantis 2637 584 211 0 795 1842
F. Kurpik 2254 499 180 1994 -1314 3568
A. Jorren 1629 361 0 803 -442 2071
19633 4351 781 5396 -264 19897
Monthly Tax
Withheld = -1320
Monthly gross pay
7455 W2 9903.4584 9903
9770 W4 2839/1.1*49% 1265
18465 W5 W2+W4 11168
4820
7150
17905
13185
11270
8145
98165
PAYG Installment
Gross Pay 328767
+ Dividend 0
- GST 23780
304987
less: GST
Sale of old furniture 9985.455
Sale of machinery 6421
Electrician 2839
T. York 11409 30654
Installment Income 274333
5

T1 274333
T2 18.76%
T11 51465
BAS SUMMARY
1A 23780 1B 20695
4 11168 5B
5A 51465 6B
6A 14223
8A 100636 8B 20695
Amount Refundable 79941 Payable
Lodgement requirements of PAYG section in BAS
Pay as you go tax is a unique concept in which tax is applicable on the amount spent
by an individual in a particular financial year will also be taxed under their hands. There are
two modes to file the PAYG income tax returns using instalment method and instalment rate
method to file the return on all the expenses incurred by an individual in a financial year.
Instalment amount is determine by an entity by using all the investments included in a
business and all the investment income received by an individual to assessed the income tax
return received (Karimi, 2017).
On another hand, actual income earned by an individual is multiply with different
rates to ascertain the actual amount of PAYG amount through instalment rate method.
QUESTION 3
How to keep up to date with the changes takes places in the legislations of Goods and
services tax, reporting authority. What kind of research conducted by an individual and
consultation with the professional.
Goods and services tax is a single tax applicable on all the purchase and sale of goods
and services by eliminating another complimentary taxes such as excise duty, value added tax
and custom duty as the burden of single tax imposed on all the customers instead of all other
taxes. An business individual keep track on all the changes takes places in the external market
related to GST by taking updates from the website of Australian taxation to get rid of all the
changes takes places in the outside environment.
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By reviewing the website of www.ato.gov.au, two changes have monitored in the
goods and services tax in the Australia to reduce the overall taxable obligations on an entity.
An enterprise always tries to reduce their tax obligations by paying all the taxes in advance to
secure the overall earnings of the firms after paying all the expenses as the expenses will
helps in decreasing the total tax liability of an entity (Bakhtiari, 2017).
 GST tax applicable on imported services and digital products- This change has
applicable in the Australia from 1st July 2017 to apply this rule from new financial
year by winding up the previous rules and regulations. This change shows the
extension of areas of covering up under the goods and services taxes which, in turn,
increasing the tax revenues of the government and also helps in controlling the
importing of goods to safeguard the potential of the domestic business users. It
includes buying of imported services by an individual in the Australia from other
countries and all the digital products. A digital product includes various things such as
movies, music, applications, games, and kindle books, online architectural and legal
services (Somerset, 2017). If an individual and business user meets the threshold limit
of $750000 then they are required to register under the GST law and pay the GST on
the overseas supplies.
 GST on low value imported goods- This change come into existence on 1st July
2018 under which sales of lower value goods imported by the customers from outside
the Australia comes under the tax obligation of GST. Total value of goods imported in
the Australia is less than the value of Australian dollar 1000 then these goods will be
exempted from the tax liability.
Secondary research study has used in identifying all the changes takes places in the
eternal environment about the GST legislations. It is essential to gather information
regarding changes takes places in the GST rules and regulations by using internet as one
of the helpful medium. Through internet website of the Australian taxation is used to
update an individual’s knowledge regarding all the changes. Primary research is not
suitable as it is not suitable enough to visits the Association bodies and takes their
interview on the current matter (Cassidy, 2017). Through email and electronically mode,
advanced taxation experts can be contact to know their opinion on the changes in the GST
rules. An entity can reduce their tax obligations by taking experts views of all the taxation
experts in knowing their tax liability.
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REFERENCES
Anderson, H. L., Ramsay, I., Welsh, M. A., & Hedges, J. (2017). Phoenix Activity:
Recommendations on Detection, Disruption and Enforcement.
Bakhtiari, S. (2017). Entrepreneurship Dynamics in Australia: Lessons from Micro-Data.
Bateman, H., & Liu, K. (2017). Pension reform: Australia and China compared. Economic and
Political Studies, 1-19.
Biddle, N., Fels, K., & Sinning, M. (2017). Behavioural Insights and Business Taxation: Evidence
from Two Randomized Controlled Trials.
Cassidy, J. (2017, January). A GST with GRRRRRR: Legislative responses to GST tax avoidance in
Australia and New Zealand. In Australasian Tax Teachers Association Conference 2017.
Fullarton, L. (2017). Artful Aussie Tax Dodger: 100 Years of Tax Reform in Australia. Columbia
University Press.
Karimi, S. (2017). Beyond the Welfare State: Postwar Social Settlement and Public Pension Policy in
Canada and Australia. University of Toronto Press.
Somerset, J. W. (2017). Defining a financially sustainable independent school in Australia (Doctoral
dissertation, Queensland University of Technology).
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