GST core
Tax period
A tax period is the length of time covered by each BAS for GST, most commonly a quarter, but it can be a month or a year for some businesses.
A tax period is the block of time for which you report and pay GST. Each tax period ends with a BAS that covers the GST on sales and the credits on purchases for that time. Most small businesses have quarterly tax periods, which means four BAS per year, covering the periods ending in March, June, September and December.
Some businesses report monthly. Larger businesses with high GST turnover are required to report monthly, and smaller businesses can choose to if they prefer more frequent reporting. Monthly reporting can help with cash flow when you are regularly owed refunds or want to keep the amounts payable smaller, though it does mean more lodgments through the year.
Annual tax periods are available in some cases, such as for businesses that are registered voluntarily and have a GST turnover below the registration threshold, and who elect to report annually. An annual option can reduce paperwork, but a business needs to be careful about the amounts to be paid at the end of the year. The annual option may not be suitable for those who rely on regular refunds.
Your tax period is set when you register for GST, and the ATO will usually place you on quarterly reporting unless you are required to report monthly or choose another option. You can ask to change your tax period, for example from quarterly to monthly, by contacting the ATO or using online services, and there are rules about when the change takes effect.
A common misunderstanding is that the tax period is the same as the financial year. It is not. The Australian financial year runs from 1 July to 30 June, but tax periods are shorter and typically run for three months. Another confusion is mixing the tax period for GST with the periods used for PAYG withholding or instalments. They are often reported on the same BAS but can have different periods.
Check your due dates on the ATO online services portal or on your BAS. The due date for a quarterly BAS is generally 28 days after the end of the quarter, with later dates available in some circumstances. Keep up with the lodgments to avoid penalties and interest. This content is general information only, so confirm your tax period and due dates with the ATO or a registered tax professional.
Worked example
A small retailer is registered for GST with quarterly tax periods. The quarter from 1 July to 30 September has GST on sales of $12,000 and credits of $4,500, so the net amount for that tax period is $12,000 - $4,500 = $7,500. This is reported on the BAS for the September quarter, which is generally due 28 days after the quarter ends.
Practical tips
- Check your tax period on your ATO online account so you know your due dates.
- Consider monthly reporting if you regularly receive refunds or want smaller, more frequent payments.
- Update your details with the ATO if your business address or agent changes, so reminders and notices reach the right person.