BAS and reporting
Registered BAS agent
A registered BAS agent is a person or firm registered with the Tax Practitioners Board to provide BAS services, such as preparing and lodging BAS, for a fee.
A registered BAS agent is a professional who is registered with the Tax Practitioners Board to provide BAS services. These services include preparing and lodging Business Activity Statements, advising on GST and PAYG withholding, and handling other activity statement matters. Many BAS agents are also bookkeepers, and they are a common choice for small businesses that want help with day-to-day compliance without the cost of a full accounting firm.
Registration matters. Under the Tax Agent Services Act, only registered tax agents and BAS agents can charge a fee for BAS services. A BAS agent must meet requirements for qualifications, experience and conduct, and must maintain professional indemnity insurance and meet continuing professional education. You can check whether a person is registered on the Tax Practitioners Board public register before engaging them.
A BAS agent differs from a registered tax agent. A BAS agent focuses on BAS services, whereas a tax agent can also prepare income tax returns and provide broader tax advice. Some professionals hold both registrations. If you need an income tax return, a tax agent is required, though a BAS agent may work alongside your accountant on your bookkeeping and activity statements.
There are benefits to using an agent. They can often lodge on a later date under the agent lodgment program, which can ease the timing pressure, though payment dates may differ. They can also reduce errors, help you reconcile and code transactions correctly, and communicate with the ATO on your behalf. This is valuable when an issue arises, such as a query about a refund or an overdue statement.
You remain responsible for your tax affairs. Even when you use an agent, the information must come from you, and you should review what is lodged. Give the agent complete records, respond to questions promptly and keep copies of what was lodged. Confirm what the fee covers, whether lodgment is included, and who handles ATO letters. A written engagement agreement is a good idea.
Authorise your agent through the ATO's systems so they can act for you, and review the authority from time to time. Keep your records for five years. This is general information only, so confirm any specific questions with the ATO or a registered tax professional.
Worked example
Mick runs a small electrical business and hates paperwork. He engages a registered BAS agent for $120 a month, after checking the Tax Practitioners Board register. Each quarter he sends invoices and bank feeds, the agent reconciles, prepares and lodges the BAS showing net GST of $3,400, and Mick pays the ATO. He reviews the summary before approval.
Practical tips
- Check the Tax Practitioners Board register before engaging anyone to prepare or lodge your BAS for a fee.
- Agree in writing what the fee covers, including lodgment, reconciliation and dealing with the ATO.
- Review each lodged statement yourself, because you remain responsible for it.