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What is a Business Activity Statement (BAS) and does your business need to lodge them?
Plan your expenses and deductions strategically each year
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Maintain accurate and organized financial records for easy reporting
Talk to a tax professional for expert guidance
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Use accounting and tax software to make management easier
What Is a BAS?
If you run a business in Australia and you're registered for GST, you've probably come across the termBAS. Here's a simple rundown of what it actually is and what you need to know about it.
What Does BAS Stand For?
BAS stands for Business Activity Statement. It's a form that GST-registered businesses lodge with theATO to report and pay several types of tax, all in one go.
What Does a BAS Actually Cover?
A BAS is mainly used to report:
- GST you've collected on sales, and GST you've paid on business purchases
- PAYG withholding – the tax you withhold from employee wages
- PAYG instalments – prepayments towards your own income tax
- In some cases, other obligations like fringe benefits tax, fuel tax credits, luxury car tax or wine equalisation tax
Most small businesses only deal with GST and PAYG withholding, so don't worry if the other items don't apply toyou.
Do You Need to Lodge a BAS?
You only need to lodge a BAS if you're registered for GST. GST registration becomes compulsory once yourbusiness turnover reaches $75,000 per year ($150,000 for not-for-profits). If you're under that threshold, you can register voluntarily, but you don't have to.
How Often Do You Lodge?
How often you lodge depends on your GST turnover:
- Quarterly – the most common option, for businesses with a turnover under $20 million
- Monthly – compulsory once turnover hits $20 million or more (some businesses choose this voluntarily for smoother cash flow)
- Annually – only available if you've voluntarily registered for GST and your turnover is under $75,000
For most small businesses lodging quarterly, the standard due dates are:
- July to September quarter – due 28 October
- October to December quarter – due 28 February
- January to March quarter – due 28 April
- April to June quarter – due 28 July
If you lodge through a registered tax or BAS agent, you usually get a couple of extra weeks beyond these dates (the December quarter is the exception – no extension applies there, since the standard due date already accounts for the holiday period).
If you lodge monthly, your BAS is due on the 21st of the following month.
What If You Have Nothing to Report?
You still need to lodge. Even if you had no sales, no purchases and nothing happened that quarter, you're required to lodge a nil BAS by the due date. Skipping it can still result in a penalty, even though there's nothing to pay.
What Happens If You Lodge Late?
The ATO can apply a Failure to Lodge penalty for every 28-day period your BAS is overdue, and interest accrues daily on any unpaid amount. If you know you're going to miss a deadline, it's always better to contact the ATO (or your accountant) before the due date rather than after.
How Do You Lodge a BAS?
Most businesses lodge online through the ATO Business Portal, MyGov (for sole traders) or directly through accounting software like Xero. You can also lodge through a registered tax or BAS agent, who can prepare and submit it on your behalf.
The Bottom Line
A BAS is simply how the ATO keeps track of the GST and PAYG amounts moving through your business. Once you understand what's being reported and when it's due, it becomes a routine part of running your business rather than something to dread each quarter.
If you're ever unsure about your BAS obligations or want someone to take it off your plate, a registered BAS or tax agent can manage the whole process for you.
