20 September 2018

What is an Instalment Activity Statement?

An IAS or Instalment Activity Statement, is a form used by taxpayers who are not registered for Goods and Services Tax (GST). It is also the form required to be lodged by entities that prepare a quarterly Business Activity Statement, but are required to remit their Pay As You Go (PAYG) withholding tax on a monthly basis because they are a medium withholder.

The IAS is a pre-printed document issued by the Australian Taxation Office every month, which summarises the amounts of PAYG instalments, PAYG withholding and ABN withholding.

If you withhold more than $25k per year, you must do this every month. If the amount is in excess of this amount, it can be done through the BAS. Withholders of large amounts have to remit statement seven days after the payment of wages or fees.

The ATO has a dedicated section about the IAS and lodgement time frames. If you are stressed out at tax time, Dexterous Group can help to make all the necessary preparations so you can focus on your business.

Who uses Instalment Activity Statement?

If you own a business or are individual that deals with PAYG Instalments, PAYG withholding, and/or Fringe Benefit Tax Instalments, and you aren’t registered for the GST you will need to lodge IAS’s. There are instances, for example if you are a trustee, where you are required to fill out both business activity statements and IAS forms.

Where do I get the forms from?

The Australian Taxation Office will send all your IAS documents well ahead of completion deadline. This will allow you plenty of time to complete it and have it lodged before the due date. You will also notice that some parts of the form will have already been filled out with some of your personal information in order to save you some time.

Tips to stay on top of your obligations

  • Keep all your paperwork up to date and easily accessible.
  • Even if there is nothing to report, you must still lodge your Instalment Activity Statement on time.
  • Plan ahead of time and ensure your IAS is completed ahead of time.
  • Make sure that you aren’t late with lodgement and/or payments to the ATO or you will be subject to late fees and charges.
  • Make sure the form has been signed and dated before submitting your IAS.
  • You only need to lodge a single copy of your IAS per reporting period.
  • Contact the ATO and get them to send you out a new form if you make a mistake on your IAS.
  • Keep copies of your IAS.

Getting the right advice

These recommendations will help you better understand your IAS obligations, but you could also take the simpler option of letting an accountant do it for you. Contact the Dexterous Group Team today to find out more about our packages and how we can tailor an affordable solution to your needs so you can concentrate on growing your business.

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