If you’ve just started a business, BAS is probably one of those terms you’ve heard a few times without really knowing what it involves.
In simple terms, a Business Activity Statement (BAS) is how you report certain tax obligations to the ATO during the year. Depending on your business, that could include GST, PAYG withholding and PAYG instalments.
The first BAS can feel a bit overwhelming because there are different labels, figures and tax categories to deal with. But once your bookkeeping is up to date and you know what each section is asking for, it becomes much more straightforward.
What Is a Business Activity Statement?
A BAS is a way to report certain business taxes to the ATO throughout the year.
For most small businesses, GST is the main part.
If you’re registered for GST, you’ll usually charge GST on taxable sales. At the same time, you may be able to claim back the GST you’ve paid on eligible business expenses.
Say you run a landscaping business. You charge customers GST for your work, but you’re also paying GST when you buy materials, tools and other supplies. Your BAS looks at both sides and determines whether you have GST to pay or are entitled to a credit.
It’s also worth knowing that BAS and your annual tax return are not the same thing. BAS deals with certain tax obligations during the year, while your tax return looks at your overall taxable income for the financial year.
Who Needs to Lodge a BAS?
Having an ABN doesn’t automatically mean you need to lodge a BAS.
The main reason most businesses lodge one is that they’re registered for GST.
GST registration is usually required when your turnover reaches $75,000. For not-for-profit organisations, the threshold is $150,000.
There are some exceptions. Taxi, limousine and ride-sourcing businesses may need to register for GST regardless of how much they earn.
You can also choose to register for GST even if you’re below the normal threshold.
Depending on how your business operates, your BAS might also include PAYG withholding or PAYG instalments.
What Do You Report on a BAS?
What you need to report depends on your business, but these are the areas most business owners encounter.
GST
This is where you report things like your sales, the GST you collected and the GST credits you’re claiming on eligible purchases.
If you’re using the ATO’s simpler BAS reporting method, you’ll commonly see:
G1 – Total sales
1A – GST on sales
1B – GST on purchases
This is where good bookkeeping makes a big difference. If everything has been entered and coded properly during the quarter, preparing the BAS is much easier.
PAYG Withholding
If you employ staff and withhold tax from their wages, you may need to report those amounts on your BAS.
The important thing to remember is that this is money you’ve withheld from payments made to employees or certain other payees.
PAYG Instalments
PAYG instalments are different.
These are payments made towards the tax you’re expected to owe on your own business or investment income.
So, in simple terms: PAYG withholding is tax you withhold from someone else’s payment, while PAYG instalments go towards your own expected tax bill.
How Often Do You Need to Lodge a BAS?
Not every business lodges BAS on the same schedule.
You may lodge monthly, quarterly or annually, depending on your circumstances.
If you lodge monthly, your BAS is usually due on the 21st of the following month. Businesses with GST turnover of $20 million or more are required to report GST monthly.
Many small businesses lodge quarterly. The usual due dates are:
July to September - 28 October
October to December - 28 February
January to March - 28 April
April to June - 28 July
Your actual due date may differ, particularly if a registered agent is lodging it for you.
If you’ve voluntarily registered for GST and your turnover is still below the registration threshold, you may also be able to report annually.
Cash vs Non-Cash GST Reporting
This part sounds more complicated than it really is.
With the cash method, GST is generally reported when money actually changes hands. So you report GST when a customer pays you, and you generally claim GST credits when you pay for a purchase.
With the non-cash method, the timing is usually based on when an invoice is issued or received, or when payment happens, whichever comes first.
Not every business can use the cash method, so it’s worth checking which method applies to you rather than assuming.
What Should You Have Ready Before Preparing Your BAS?
The easiest BAS is the one you’ve been preparing for all quarter without realising it.
If your bookkeeping is current, there shouldn’t be a mad rush at the end of the reporting period.
You’ll usually need:
Sales and income records
Expense and purchase records
Tax invoices
Bank transactions
GST information
Payroll records
PAYG withholding details
PAYG instalment information
Up-to-date accounting records
Before lodging, it’s also worth reconciling your bank accounts and checking that transactions have been given the right GST treatment.
Most business records must be retained for 5 years, although some have longer retention requirements.
Common BAS Mistakes to Avoid
Most BAS mistakes aren’t caused by complicated tax law. They happen because something has been missed or coded incorrectly in the bookkeeping.
A few common ones are:
Claiming GST when the supplier didn’t charge GST
Using the wrong GST code
Leaving sales out
Claiming private expenses through the business
Lodging before the accounts are reconciled
Mixing up PAYG withholding and PAYG instalments
If you realise something is wrong after you’ve already lodged, don’t just leave it and hope it sorts itself out.
Some mistakes can be fixed on a later BAS. Others may mean you need to revise the BAS you already lodged. What you need to do depends on the type and size of the error.
Can You Lodge BAS Yourself?
Yes, you can.
Many business owners lodge their own BAS through the ATO’s online services, especially when the business is small and the bookkeeping is fairly simple.
But once you add employees, more complicated GST transactions, overdue BAS, messy bookkeeping or past mistakes, it can become harder to know whether the numbers are right.
That’s usually where getting a registered tax or BAS agent involved can save a lot of time and avoid problems later.
Make BAS Easier by Staying Organised
The biggest mistake is leaving everything until the BAS deadline.
If your bookkeeping is kept up to date during the month or quarter, preparing BAS becomes far less stressful. Keep your invoices, reconcile your bank accounts and make sure transactions are being treated correctly for GST as you go.
That way, when BAS time comes around, you’re checking the numbers rather than trying to rebuild months of records.
It’s also worth noting that from 1 July 2026, falling behind costs more: the failure-to-lodge penalty is now $364 per 28-day period overdue, and late payment interest charges are no longer tax-deductible.
Need Help With Your BAS?
If BAS is taking longer than it should, or you’re not completely sure the figures are right, it may be worth getting someone to look it over.
At Clear Tax, we help Australian businesses with BAS, GST, bookkeeping and their broader tax obligations.
Whether it’s your first BAS, you’re a beginner, or you simply want to understand the process better, our step-by-step guide on how to lodge BAS online can walk you through it from start to finish.
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