Starting a new business brings excitement—and a fair share of obligations. One critical obligation for Australian businesses is lodging a Business Activity Statement (BAS). This regular report to the Australian Taxation Office (ATO) ensures that your Goods and Services Tax (GST), Pay as You Go (PAYG) withholding, and other tax obligations are accurately declared and paid.
Missing deadlines or lodging incorrectly can result in penalties, interest charges, and unnecessary stress. This guide breaks down exactly when and why you need to lodge your BAS, using a clear, step-by-step structure.
What Is a BAS and Why Does It Matter
A Business Activity Statement (BAS) is a form business use to report and pay various tax obligations, including:
- GST collected on sales and claimed on purchases
- PAYG withholding from employee salaries
- PAYG instalments for tax on business income
- Other taxes, such as fuel tax credits or wine equalisation tax, if applicable
Lodging a BAS keeps your tax affairs transparent and up to date. It also helps you manage cash flow by scheduling regular payments rather than facing a lump sum at tax time.
Who Must Lodge a BAS?
Not every business is required to complete a BAS. You need to lodge one if:
- You are registered for GST (mandatory once your annual turnover exceeds $75,000, or $150,000 for nonprofit organisations).
- You have employees and must withhold income tax under PAYG.
- You pay PAYG instalments based on estimated income tax.
- You need to report other taxes to the ATO (e.g., fuel tax credits).
BAS Reporting Periods and Deadlines
Your BAS reporting period depends on your business’s size and needs:
1. Quarterly:
The most common frequency. Deadlines are 28 days after the end of each quarter
2. Monthly:
Required if your GST turnover exceeds $20 million or at your election to help manage cash flow; due 21 days after each month’s end.
3. Annually:
Option for very small businesses with annual GST turnover under $75,000 and no PAYG withholding—you may lodge once a year, due 28 February.
Check ATO communications or your BAS agent’s advice to confirm your lodgement cycle.
How to Know When to Start
1. Register for an ABN and GST:
When you register for GST, the ATO assigns you a BAS reporting cycle.
2. Monitor turnover:
As soon as you predict or reach the $75,000 turnover threshold, register for GST.
3. Watch your mailbox and email:
The ATO will send reminders indicating when your first BAS is due.
Preparing and Lodging Your BAS
1. Gather records:
Collect invoices, receipts, payroll summaries, and any other transaction documents for the period.
2. Use accounting software:
Platforms like Xero, MYOB, or QuickBooks automatically calculate GST and generate BAS data.
3. Review figures carefully:
Confirm that sales, purchases, and withholding amounts are correct.
4. Lodge online or via a BAS agent:
You can submit through the ATO Business Portal, your accounting software, or an agent authorised by you.
5. Pay any amounts owing:
Ensure payment by the due date to avoid penalties.
Conclusion
Meeting your BAS obligations punctually and accurately is a hallmark of professional financial management. By understanding your requirements, choosing the right tools, and planning, you will avoid costly mistakes and focus on growing your business with confidence.