Taxpayers who are not registered for GST are required to report their tax obligations on an Instalment Activity Statement (IAS) rather than a Business Activity Statement (BAS). Generally, IAS is calculated to report all obligations and entitlements relating to FBT instalments, PAYG withholdings and instalments, and deferred company and fund instalments. Employers who use an IAS will generally lodge their IAS quarterly, except for employers with annual withholding obligations of more than $25,000 – they are required to report and pay monthly.
The IAS is mainly for individual taxpayers (including trustees) with investment income to report their obligations to the ATO. Investment income includes rental, dividend and interest income. The form can be used to report obligations for:
- PAYG instalments
- PAYG amounts withheld from payments
- FBT instalments
- Deferred company instalments
Some taxpayers are still required to complete both a BAS and an IAS where, for example, a family business is run through a trust.
