If you are registered for GST in Australia, you are required to lodge a Business Activity Statement — commonly known as a BAS — on a regular basis. For many small business owners, especially those just starting out, the BAS can feel overwhelming. In reality, once you understand what it is and what it requires, it becomes a routine part of running your business.
What Is a BAS?
A BAS is a form you submit to the Australian Taxation Office (ATO) that reports the tax obligations your business has incurred over a specific period. It typically covers:
- GST — the Goods and Services Tax you have collected from customers, minus the GST you have paid on business expenses (called input tax credits)
- PAYG Withholding — the tax you have withheld from employee wages and need to remit to the ATO
- PAYG Instalments — prepayments of your own income tax (for some businesses)
Who Needs to Lodge a BAS?
You must lodge a BAS if your business is registered for GST. You are required to register for GST if your annual turnover is $75,000 or more ($150,000 for non-profit organisations). If you are below this threshold, GST registration and BAS lodgement are optional — but you cannot charge GST or claim GST credits if you are not registered.
How Often Do You Lodge?
Most small businesses lodge their BAS quarterly. The quarters align with the Australian financial year:
- Q1: July – September (due 28 October)
- Q2: October – December (due 28 February)
- Q3: January – March (due 28 April)
- Q4: April – June (due 28 July)
High-turnover businesses (over $20 million) lodge monthly. Some very small businesses may be eligible to lodge annually.
How Do You Lodge?
You can lodge your BAS:
- Online through myGov (linked to the ATO)
- Through your accounting software (Xero, MYOB, and QuickBooks all have built-in BAS lodgement)
- Through a registered BAS agent or accountant
Using accounting software is by far the easiest option for most small businesses — it tracks your GST automatically throughout the quarter and populates your BAS for you.
The Golden Rule: Keep Good Records
Your BAS is only as accurate as the records behind it. Keep every tax invoice for purchases over $82.50 (the threshold for claiming GST credits). Reconcile your bank accounts regularly. Separate your business and personal finances with a dedicated business bank account.
Good record-keeping turns BAS time from a stressful scramble into a straightforward task.
What Happens If You Lodge Late?
The ATO charges a Failure to Lodge (FTL) penalty for late BAS submissions. The penalty accumulates at $313 per 28-day period (or part thereof) that the BAS remains outstanding. It adds up quickly — so always lodge on time, even if you cannot pay the amount owing in full.
If you are struggling to pay your BAS debt, contact the ATO before the due date. They are generally willing to set up payment plans for businesses in genuine difficulty.
Should You Use an Accountant?
If your business is straightforward, you can absolutely lodge your own BAS using accounting software. If your situation is more complex — you have employees, deal in mixed GST supplies, or have other tax obligations — a registered BAS agent or accountant is worth every cent. They can also extend your lodgement deadlines, giving you more time.