Question 1

What is the difference between a Bookkeeper , a BAS Agent and a Tax Agent?

Accepted Answer

A: A BAS Agent is a professional who is authorised to prepare and lodge business activity statements (BAS) and other tax-related services on behalf of businesses, including any other reporting obligations under the Australian Taxation Office (ATO) legislation.

What A Bas Agent Can Do

A BAS Agent is issued a licence (registration) that says they can advise a client, and provide certainty to a client or represent that client to the ATO in relation to:

• All Goods and Services Tax (GST) matters (collected or paid).
 • Wine Equalisation Tax (WET).
 • Fuel Tax Credits (FTC).
 • Luxury Car Tax (LCT) matters.
 • Fringe Benefits Tax (FBT) – collection and recovery only.
 • All aspects of payroll that relate to the withholding of tax amounts and the reporting of those amounts to the employee and the ATO.
 • Services under the Superannuation Guarantee (Administration) Act 1992 to the extent that they relate to payroll functions or payments to contractors, including determining and reporting Superannuation Guarantee (SG) Charge (SGC) shortfall amount and any associated administrative fees.
 • All aspects of completing and lodging the Taxable Payments Annual Report (TPAR) to the ATO, on behalf of a client.
 • All aspects of other Pay as you go (PAYG) withholding (PAYGW) amounts; e.g. no Australian Business Number (ABN), interest and dividend.
 • All aspects of the payment of income tax via PAYG instalments (PAYGI).
 • Applications to the Register for an ABN, on behalf of a client.

In addition, a registered BAS Agent may:
 • Design and set up compliance systems in respect to business and the BAS provisions.
 • Advise a business on how the above areas of law affect them with respect to business and the BAS provisions.
 • Review a business operation in relation to these areas of law.
 • Review reports to verify their accuracy for the correct application of BAS provisions (GST, WET, LCT, FTC, PAYGW, SG, TPAR and the payment of PAYGI and the payment of FBT instalments).
 • Provide certainty to the client that they are getting it right.
Note: These tasks cannot be done by a Bookkeeper who is not a registered agent.

What A BAS Agent Can’t Do

• Advise, ascertain, and represent a client to the Commissioner of Taxation in other tax matters (such as income tax).
 • Interpret the income tax provisions and advise a client how that is to apply to them. (A BAS Agent can implement the advice or a system prescribed by either the external Tax Agent or maybe the business themselves, but not if the business ‘relies’ on them for the advice and certainty.)

A Tax Agent can also advise and complete these tasks and other areas of taxation law.

Read more about the risks of using unregistered preparers here:

https://www.tpb.gov.au/risks-using-unregistered-preparers (https://www.tpb.gov.au/risks-using-unregistered-preparers)

Question 2

If I don’t need all the services you offer, can I just choose one or two?

Accepted Answer

Absolutely!  We tailor our services to suit YOU.  No matter how big or small the task.

Question 3

My business is not located in Ballarat – will that be an issue?

Accepted Answer

Many of our clients are located in other locations around Victoria and other states.  All of our work can be completed remotely.

Question 4

Can you help me register for GST and PAYG Withholding?

Accepted Answer

Yes we can!

Question 5

Why do I need to use Client to Agent Linking – it was never a requirement for my previous Bookkeeper/Accountant?

Accepted Answer

Starting from the 13 November 2024, all entities possessing an Australian Business Number (ABN), except for sole traders, will have to nominate a new Tax or BAS Agent in ATO Online Services for Business before that Agent is allowed to access ATO information. Nothing should change or be required for existing Agents.

Read more about Client to Agent Linking here:
https://www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/agent-nomination/how-to-nominate-your-registered-agent (https://www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/agent-nomination/how-to-nominate-your-registered-agent)

Question 6

What is Single Touch Payroll? Is it mandatory?

Accepted Answer

Single Touch Payroll (STP) is an Australian Government initiative to streamline employers' reporting to government agencies.

With STP you report employees' payroll information directly to the ATO each time you pay them through STP-enabled software. Payroll information includes:

• salaries and wages
 • pay as you go (PAYG) withholding
 • superannuation liability information.

STP started on 1 July 2018 for employers with 20 or more employees and 1 July 2019 for employers with 19 or fewer employees and is a mandatory obligation.

From 1 January 2022, the data collected through STP was expanded (known as STP Phase 2) to collect additional payroll information.

All employers should now be STP reporting and transitioned to STP Phase 2 reporting unless covered by a deferral or exemption.

If you are new to employing, you will need to start reporting now through STP Phase 2 enabled software as soon as you start paying your employees to avoid any penalties.

Read about STP reporting here in detail:

https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/single-touch-payroll/what-is-stp (https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/single-touch-payroll/what-is-stp)

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