The Business Activity Statement (BAS) explained

What is the BAS?

The Business Activity Statement (BAS) is how you report and pay GST to the ATO. It may also include other tax obligations, such as PAYG withholding and PAYG instalments, depending on your business. For a business that is only registered for GST, the BAS is a short form with a few key figures.

How often do I lodge?

Most small businesses report GST quarterly. Businesses with a larger turnover, and those the ATO directs, must report monthly. Some small businesses can choose to report annually, which suits those with simple affairs who also meet the criteria. The ATO assigns a reporting cycle when you register and you can ask to change it if you qualify.

Quarterly BAS is generally due 28 days after the end of each quarter, with some extended due dates for the quarters that fall at the end of the calendar year when lodging through a registered agent. Because dates can change, always check the ATO due dates page for the current calendar.

The key GST labels

The most important figures are G1, your total sales including GST; 1A, the GST you collected on sales; 1B, the GST credits you claim on purchases; G10, capital purchases; and G11, non-capital purchases. The net amount is 1A minus 1B. If 1A is bigger you owe the ATO that difference; if 1B is bigger you are due a refund.

• G1: total sales (including GST)
• 1A: GST on sales
• 1B: GST credits on purchases
• G10: capital purchases
• G11: non-capital purchases

Lodging and paying

You can lodge through the ATO online services for business, through a registered tax or BAS agent, or through compatible accounting software. Pay by the due date to avoid interest and penalties. Even if you owe nothing and had no activity you must still lodge a nil BAS.

If you cannot pay

If you cannot pay by the due date, lodge on time anyway and contact the ATO about a payment plan. Failing to lodge attracts penalties that are separate from the debt itself, and unpaid amounts accrue the general interest charge.

Reconcile before you lodge

Before lodging, reconcile your bank accounts and check that every taxable sale and every credit claimed is supported by a document. Look for sales entered with the wrong tax code, private expenses mixed in, and duplicate entries.