What is an IAS or Instalment Activity Statement?

The taxation world is littered with acronyms. In fact, it can seem like a language all of its own.

So, what is an IAS? It’s a query our clients often ask and it continues to be a popular FAQ on our blog. Here, Dexterous Managing Director and Founding Partner, Nick Urry, explains and whether you need to pay attention to it for your business.

What is an IAS?

An IAS, or Instalment Activity Statement, is a pre-printed document issued monthly by the Australian Taxation Office (ATO) which summarises the amounts of Pay As You Go (PAYG) instalments, PAYG withholding and ABN withholding.

Who uses an Instalment Activity Statement?

You need to lodge an IAS if you own a business or are an individual that isn’t registered for GST and deals with:

  • PAYG instalments
  • PAYG withholding
  • and/or Fringe Benefit Tax instalments.

It is also the form required to be lodged by entities that prepare a quarterly Business Activity Statement (BAS), but are required to remit their PAYG withholding tax on a monthly basis because they are a medium withholder. There are instances, for example; if you are a trustee, you are required to fill out both BAS and IAS forms.

If you withhold more than $25k per year, you must lodge every month. If your figures are in excess of 25k, it can be done through the BAS. Withholders of large amounts must remit statements seven days after the payment of wages or fees.

If tax and accounting isn’t your strong suit, Dexterous can help. We have 15 years of taxation experience and a team proficient in managing these requirements. Meanwhile, you can focus on other areas of your business.

Where do I get the forms from?

The Australian Taxation Office will send them to you in advance. This allows you plenty of time to complete it and have it lodged before the due date.

When do I need to lodge them?

The ATO has a dedicated section for IAS lodgement time frames. They are due monthly.

Tips to lodge your IAS

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

Get the right advice

The easiest way to manage your taxation requirements is to entrust an accountant to 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.