In this video, business coach Hugh Bowman from ActionCOACH Geelong explains the key components of a Business Activity Statement (BAS) and why understanding it is essential for business owners. A BAS is a report that businesses submit to the government to account for three main tax components: 1. Goods and Services Tax (GST) GST is the tax collected on sales (typically 10%) minus the GST paid on purchases. The final amount payable depends on the difference between collected and paid GST. Businesses often see higher GST obligations in the final quarter of the year when work volume increases before Christmas. 2. Withholding Tax This is the tax deducted from employees’ wages before they are paid. If a business increases staffing or incurs high overtime costs, withholding tax will also rise accordingly. 3. Company Instalment Tax This is a forecasted tax amount based on the business’s previous taxable profit. The government … Read more