BAS and reporting
Nil BAS
A nil BAS is a Business Activity Statement lodged with zero amounts because the business had no GST sales, purchases or other reportable activity during the period.
A nil BAS is a statement lodged with zeros at the relevant labels because there was no activity to report in the period. It might apply to a new business that has registered but not yet traded, a seasonal business in a quiet period, or a business that is winding down. If you are registered for GST and are required to lodge, you generally still need to lodge even when nothing happened.
Lodging a nil BAS is simple, but it should still be accurate. It is only appropriate where you genuinely had no sales, no purchases with GST credits, no wages paid and no other amounts to report. If you had even a single sale or a purchase that you intend to claim, it needs to be reported. A nil statement does not mean no records, and you should keep evidence supporting the nil position.
The ATO may allow a nil BAS to be lodged through online services, through your accounting software or sometimes by phone, depending on your circumstances. Check the options available to you. Make sure you use the correct period and confirm that the statement has been received. Keep a note of the confirmation for your records.
A common misunderstanding is that a business with no income does not need to lodge. The obligation comes from your registration, not your trading level. If you do not need to be registered, for example because your turnover is below the threshold and you registered voluntarily, you may be able to cancel your GST registration. If you do plan to continue, remember to keep lodging.
Failing to lodge, even when you owe nothing, can lead to a failure to lodge penalty. It also leaves outstanding statements on your account, which may affect refunds, loans and your standing with the ATO. If you are no longer trading, consider cancelling your registrations properly rather than letting the lodgments lapse.
Another point to watch is the difference between a nil BAS and a BAS with only a credit. If you only made purchases, you might report GST credits and be entitled to a refund, which is not a nil statement. Retain your records for five years. This is general information only, so confirm your situation with the ATO or a registered tax professional.
Worked example
Kyle registers for GST in August while he builds a website for his new consulting business. He makes no sales and has no purchases with GST until November. His September quarter BAS shows $0 at total sales, $0 at GST on sales, $0 at purchases and $0 at GST credits. He lodges the nil BAS before the 28 October due date and keeps the confirmation.
Practical tips
- Only lodge a nil BAS if you truly had no reportable sales, purchases or wages in the period.
- Remember the lodgment obligation comes from your registration, so lodge even when business is quiet.
- If you have stopped trading, cancel your registrations rather than letting nil statements pile up.