What Is A BAS Service?

Introduction

Having a clear understanding of what does and does not constitute a BAS Service is at the very heart of the matter for most bookkeepers.

A knowledge of whether the services you provide, or intend on providing, are BAS Services will shape the courses of action that you take to comply with the legislation.

Legislative Definition

BAS Services are defined by the Tax Agent Services Act. 

A “BAS service” is a ‘tax agent service’ that relates to:

• ascertaining liabilities, obligations or entitlements of an entity that arise, or could arise, under a ‘BAS provision’; or
• advising an entity about liabilities, obligations or entitlements of the entity or another entity that arise, or could arise, under a BAS provision; or
• representing an entity in their dealings with the Commissioner of Taxation in relation to a BAS provision;
   
  and
   
• that is provided in circumstances where the entity can reasonably be expected to rely on the service for the purpose of satisfying liabilities or obligations that arise, or could arise, under a BAS provision and/or to claim entitlements that arise, or could arise, under a BAS provision.

A ‘BAS provision’ includes:

• GST law;
• wine equalisation tax law;
• luxury car tax law;
• fuel tax law;
• fringe benefits tax law (relating to collection and recovery only);
• pay as you go (PAYG). 

Exemptions

BAS Services can only be provided by a Registered BAS Agent unless:

• you are an employee who is providing BAS services to your employer; or
• you are registered as a tax agent; or
• you are a customs broker licensed under Part XI of the Customs Act 1901 and the BAS service relates to imports or exports to which an indirect tax law applies; or
• you are permitted to provide the BAS service as a legal service under a state or territory law that regulates legal practice and the provision of legal services, and you provide the BAS service in the course of acting for a trust or deceased estate as trustee or legal personal representative; or
• you are permitted to provide the BAS service as a legal service under a state or territory law that regulates legal practice and the provision of legal services, and the BAS service does not involve the preparation or lodgement of a return or a return-like statement such as a BAS, instalment activity statement, superannuation guarantee statement or pay as you go withholding payment summary statement.

What Bookkeeping Services are BAS Services?

The legislation itself does not contain examples. However, the Tax Practitioners Board has compiled an Information Sheet entitled “What is a BAS Service". Appendix A to this Information Sheet contains examples of a number of bookkeeping services and whether, in the opinion of the Board, they constitute a BAS Service.

It is clear from reading the Information Sheet that the concept of a BAS Service is intended to capture most mainstream bookkeeping tasks except those where:

• the service is general in nature and not factual to a client’s circumstances (e.g. classroom training);
• the task does not involve the exercise of judgment or expertise over areas such as GST, PAYG-Withholding, etc. (e.g. bank reconciliations and mere data entry);
• the task involves acting under the instruction of another party such as a registered BAS Agent.