BAS and reporting
Lodgment
Lodgment is the formal submission of a tax document, such as a BAS or income tax return, to the ATO, and it is a separate obligation from paying any amount owing.
Lodgment simply means submitting a required tax document to the ATO. It applies to the Business Activity Statement, income tax returns, fringe benefits tax returns and other forms. The Australian spelling is lodgment, and you will see it throughout ATO guidance. A document is not lodged until it has been received by the ATO through an approved channel.
Lodgment is separate from payment. You can lodge a BAS and not pay, or pay and forget to lodge. Both can cause problems. The failure to lodge penalty applies when a return is late, while the general interest charge applies to unpaid amounts. Treat the two as separate tasks on your checklist, each with its own due date and confirmation.
There are several lodgment channels. Business owners can lodge online through the ATO's online services or through accounting software that connects to the ATO. Tax agents and BAS agents lodge on behalf of clients using their own systems. A small number of forms can still be lodged on paper. The most efficient and reliable options are electronic, and they also create a clear record that the document was received.
Accuracy matters at lodgment. Once you submit a BAS or return, the ATO will treat the figures as your declaration. If you find a mistake, you can generally amend the document, but it creates extra work and can lead to interest or penalties on any shortfall. A quick review of totals against your records before you lodge catches most errors.
Lodgment obligations can continue even when there is nothing to report. A registered business that had no sales may still need to lodge a nil statement. If you are closing a business or cancelling registration, you will usually need to lodge final documents. Ignoring lodgment does not make the obligation go away, and lodgment history is monitored by the ATO.
Always keep proof of lodgment, such as the receipt number or confirmation screen, with your records. Retain supporting documents for five years. If you cannot lodge on time because of illness, disaster or other serious reasons, contact the ATO early. This is general information only, so confirm your obligations with the ATO or a registered tax professional.
Worked example
Grace's BAS for the quarter is due on 28 October. She prepares it on 20 October, showing net GST payable of $1,800. She lodges through her accounting software and receives a confirmation number, which she saves in the BAS folder. She then pays the $1,800 using the ATO's reference. Lodgment and payment are two separate actions, and she completes both before the due date.
Practical tips
- Save the confirmation or receipt number every time you lodge, since it is your proof the ATO received the document.
- Treat lodging and paying as two separate tasks with separate checks.
- If you cannot lodge on time, contact the ATO before the due date rather than after.