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Average cost of BAS compliance rapidly declining

Average cost of BAS compliance rapidly declining

Recently released tax statistics show the average cost of complying with the Business Activity Statement has significantly decreased from the previous financial year.

Tax&Compliance Adrian Flores 27 April 2018
— 1 minute read

The ATO’s taxation statistics for 2015-16 show that, out of the forms where the time box was filled in, the average amount of time required to complete the BAS for 2016-17 was 1.4 hours, with a cost of compliance index of 58.

By comparison, the average time needed to fill the BAS in 2015-16 was 2.1 hours, with a cost of compliance index of 89.

The cost of compliance index is measured relative to 2001-02, when in that first financial year the average time to complete the BAS was measured, with an index of 100.

According to market segment, average time spent on BAS compliance was lower in both the micro segment and the small/medium segment, with 1.3 and 1.6 average hours spent respectively.  

By comparison, businesses in the large segment, entities with annual turnover greater than $250 million, spent 1.8 hours on average on BAS compliance.

Other taxation forms showed little to no change in terms of compliance costs. The average time needed to complete the Fringe Benefits Tax (FBT) from in 2016-17 was 11 hours, unchanged from the previous financial year.

In addition, the cost of compliance index for the FBT form in both financial years was the same at 91.

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Average cost of BAS compliance rapidly declining
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