As a business owner in Australia, there are various financial responsibilities that you need to be aware of. One of these is the Instalment Activity Statement (IAS). If you're new to the world of business taxes, understanding what an IAS is and how it impacts your business can seem overwhelming. In this article, we'll break down what an IAS is and how it affects you.
What is an IAS?
An IAS, or Instalment Activity Statement, is a form used by the Australian Taxation Office (ATO) to report and pay your business's income tax, PAYG (Pay As You Go) instalments, and other taxes. It's issued quarterly is simpler than a Business Activity Statement (BAS). On the IAS, the ATO tells you what your GST instalment amount is and if applicable, what your PAYG instalment amount is.
Key Components of an IAS
To better understand how an IAS works, let's take a closer look at its key components:
PAYG Instalments: PAYG instalments refer to the amounts you need to pay in advance towards your expected income tax liability for the current financial year. These instalments are based on either your business's gross income or the instalment rate advised by the ATO.
Businesses that are not registered for GST, and individuals who are required to pay PAYG instalments or PAYG withholding (such as self-funded retirees), use this form to pay PAYG. The ATO will tell you what your GST instalment amount is and if applicable, what your PAYG instalment amount is.
IAS Key Dates
The instalment amounts will be payable as follows.
July – September Quarter is due 28 October
October – December Quarter is due 28 February
January – March Quarter is due 28 April
April – June Quarter is due 28 July
Seek Professional Help
While understanding and filing an IAS can be manageable for many business owners, others might find it complex or time-consuming. We recommend you seek help from a trusted Tax Agent, like Numeric Accounting & Advisory.
At Numeric Accounting, our team of experienced professionals can help you navigate through various tax obligations, including the IAS. We understand the nuances of IAS reporting, including the various sections, calculations, and reporting requirements. We can guide you on accurate reporting, identifying eligible credits, and ensuring timely lodgment to keep your business compliant with ATO requirements.
Wrapping Up
Understanding the Instalment Activity Statement (IAS) is vital for Australian business owners. By comprehending its components and following the step-by-step guide, you can fulfil your tax obligations efficiently. If you ever find yourself in need of expert guidance, Numeric Accounting & Advisory is here to assist you every step of the way.
Remember, staying on top of your financial responsibilities not only keeps you compliant but also sets a solid foundation for your business's growth and success. So embrace the world of IAS with confidence, and take control of your business's financial journey!
For personalised guidance, please get in touch with us.