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Why Predicting Your Tax Liabilities Matters
Why Predicting Your Tax Liabilities Matters
Running a business with proactive financial planning yields several advantages over waiting for your accountant's final report:
1. Eliminates Cash Flow Surprises
1. Eliminates Cash Flow Surprises
2. Protects Your Profit Margin
2. Protects Your Profit Margin
3. Preserves Your Working Capital
3. Preserves Your Working Capital
4. Keeps Your Accountant Focused on Strategy
4. Keeps Your Accountant Focused on Strategy
How to Use Your BAS Tax Liability Calculator
How to Use Your BAS Tax Liability Calculator
This calculator is designed to give you instant visibility over your upcoming ATO activity statement liabilities so you are never caught off guard by a surprise tax bill.
Step-by-Step Guide
Step-by-Step Guide
1. Select Your Quarter & Lodgement Route
Choose the Quarter: Click on the tab corresponding to the quarter you want to review (Q1, Q2, Q3, or Q4). The calendar dates and official ATO due dates will update automatically.
Select Your Lodgement Method: Toggle the "Lodgement Route" button in the top right corner between Self-Lodger Mode and Registered Tax/BAS Agent. This will adjust the deadline display to match your actual statutory due date.
2. Input Your Financial Figures
Pull up your GST Calculation Worksheet and Profit & Loss report from your accounting software (Xero, MYOB, or QuickBooks) for that period and enter the following four core figures:
GST Collected (Sales): Enter the total GST charged on sales invoices raised during the quarter.
GST Paid (Expenses): Enter the total GST included on business expenses, bills, and inventory purchases.
PAYG Withholding (PAYG-W): Enter the total tax withheld from employee wages across all pay runs during the quarter.
PAYG Instalments (PAYG-I): Enter your company’s scheduled income tax prepayment amount for the quarter (as shown on your ATO Activity Statement).
3. Adjust for Prior Payments & Savings
Monthly IAS Already Settled: If you pay tax or withholding on a monthly cycle, enter the amounts you have already remitted for Month 1 and Month 2 of the quarter.
Tax Reserve Cash Savings: Enter the current balance of your business tax reserve account or high-interest savings pot.
4. Review Your Results
Final Payable to ATO: Look at the right-hand sidebar to view your net liability. This is the exact estimated amount required to settle your bill with the ATO for that quarter.
Cash Shortfall / Surplus Indicator:
🟩 Green Banner: Your current tax reserve covers the bill, displaying your remaining cash surplus.
🟥 Red Alert: Shows the exact shortfall amount you need to set aside into your tax account before the due date.
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