What To Expect When Your BAS Ends Up In A Refund
As you might be aware by now, Business Activity Statements are, in very simple terms, a summary of GST collected and to be claimed to the ATO, with one offsetting the other. If your GST he ATO will owe you a refund on some of the GST you paid. If you find that you are receiving a refund it is great news. You will be gaining a boost to your cashflow that can be used to help achieve new growth for your business. There are some questions business owners often have about how and when their refund will come.
For any business there are a couple of things that you need to know about when you are expecting a refund from the ATO.
Which account will my BAS refund get paid into?
Generally, your refund will be paid directly into your nominated financial institution account that you have connected with your Australian Business Number (ABN). This account needs to be in an Australian branch and held either in your company, business or trading name, or by a registered tax agent.
If the account you have connected to your ABN is incorrect you may have to change your account details as soon as possible. More on changing account details later.
What payment methods does the ATO use?
The ATO will make a direct Bpay deposit into your nominated financial institution account when the refund has been approved. This will take a few business days (2-4). When you are expecting a refund, it is important that you prepare to wait a few days to even a few weeks before you receive your payment.
Your financial institution may offer Osko or PayID. At the moment the ATO does not offer either PayID or Osko. However, they are looking to expand into new, real-time payment methods into the future. This does mean that payments made by the ATO, for now, will not be in real-time.
What if I need to change my account details?
Sometimes the account details that you have connected to your ABN are no longer correct. It is important to ensure that they are up to date. However, sometimes you are in the middle of changing financial institutions or there are other changes that have made the connected account details outdated.
If you need your account details changed, the easiest and fastest way is to contact BAS Lodge. Through a simple phone call or email we will be able to help then and there. Simply tell us that you need to change your account details, have the new details available, and we will swap you over right before you get your refund. Easy.
If you need more information regarding refunds, payment methods, or updating your account details, feel free to contact BAS Lodge. We are registered tax agents who are able to help answer your questions. Call or email us today!