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Is BAS and PAYG the same?

Can someone please explain the differences between BAS and PAYG and how they work?

Top voted answer
Amanda Hoffmann - Certified Bookkeeper, BAS Agent

Amanda Hoffmann - Certified Bookkeeper, BAS Agent, Owner / Manager ★ Certified Bookkeeper ★ BAS Agent at My Office Books - Virtual Bookkeeper & BAS Agent

Top 10% Accounting

BAS

If you are a business registered for GST you will be required to lodge a Business Activity Statement. This statement will include PAYG for staff and PAYG instalments along with other taxes like Fringe Benefits Tax, Fuel Credits or Wine equalization Tax.

See https://www.ato.gov.au/business/business-activity-statements-(bas)/ for more details. 

 

PAYG

Pay as you go relates to :

Employee wages

PAYG Instalments

 

PAYG

You do not have to be registered for GST but employee staff.

As such, a Business Activity Statement will not be applicable. You will need to still declare and submit Single Touch Payroll (STP) for your employees.

Link on the ATO for more details https://www.ato.gov.au/Business/PAYG-withholding/

 

PAYG INSTALMENTS

If your company/business made a profit in any financial year, the Australian Taxation Office will require you the following year's tax liability in advance. 

Link on the ATO for more details https://www.ato.gov.au/General/PAYG-instalments/

Hatty Bell

Hatty Bell, Executive Assistant at Country Road Group

Thanks so much for this @Amanda Hoffmann - Certified Bookkeeper, BAS Agent . Really useful information there! 

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Eloah Paes Ramalho

Eloah Paes Ramalho, Community Manager at SavvySME

@Andrew Oldham and @Kirsty Fox  curious to read what you would add.

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