What Does BAS Mean for Your Australian Business?

The Business Activity Statement (BAS) is a tax form businesses submit to the Australian Taxation Office (ATO) to report and pay various tax obligations. It consolidates different tax requirements into a single document, playing a central role in Australia’s tax compliance framework. Businesses commonly use the BAS to report on Goods and Services Tax (GST), Pay As You Go (PAYG) withholding, and also PAYG instalments.

Understanding the Business Activity Statement

The Business Activity Statement (BAS) serves as a comprehensive declaration for reporting and paying various tax obligations in Australia, primarily the Goods and Services Tax (GST). Businesses registered for GST are generally required to lodge a BAS, as this mechanism allows them to report GST collected on sales and claim credits for GST paid on purchases.

Registration for GST becomes mandatory when a business’s annual turnover reaches or exceeds $75,000. For non-profit organizations, this threshold is higher, at $150,000.

Once registered for GST, businesses gain the ability to claim “input tax credits.” These credits represent the GST paid on goods and services acquired for business operations, effectively reducing the net GST payable to the ATO. The BAS helps reconcile the GST collected on sales with the GST paid on purchases, determining whether a business owes money to the ATO or is due a refund. The frequency of BAS lodgment—monthly, quarterly, or annually—depends on a business’s GST turnover, with most small businesses lodging quarterly.

What to Report on a BAS

The Business Activity Statement (BAS) requires businesses to report specific financial information and tax obligations, ensuring compliance with Australian tax laws. A central component is the Goods and Services Tax (GST), where businesses report GST collected from sales and GST paid on purchases. The difference determines the net GST payable to or refundable from the ATO. Accurate record-keeping of all sales and purchases, including whether GST was applied, is essential for correctly completing this section.

Another item on the BAS is Pay As You Go (PAYG) withholding. If a business has employees, it must withhold a portion of their wages as tax and report these amounts on the BAS. The withheld amounts are then remitted to the ATO, contributing to the employees’ or contractors’ annual income tax liabilities.

Businesses also report Pay As You Go (PAYG) instalments on their BAS. These are regular prepayments of a business’s expected income tax liability for the financial year. The ATO calculates these instalments based on previous tax returns, and businesses can choose to pay a fixed amount or a percentage of their income. This system helps businesses manage their income tax obligations by spreading payments throughout the year.

Beyond GST and PAYG, a BAS can include other taxes relevant to specific industries or business activities. For instance, businesses involved in the wine industry may report Wine Equalisation Tax (WET). Luxury Car Tax (LCT) also applies to certain high-value vehicles. Businesses eligible for Fuel Tax Credits, which provide a credit for the fuel tax included in the price of fuel used for business activities, also claim these through their BAS.

Lodging and Deadlines

Once financial information is compiled and calculations completed, businesses lodge their Business Activity Statement with the Australian Taxation Office (ATO). Several methods are available for submission, providing flexibility. The most common approach is lodging online through the ATO’s Online services for business portal, which offers a secure and efficient way to submit the statement. This digital method often provides benefits such as faster refunds and assistance in avoiding common errors.

Businesses can also choose to lodge their BAS through a registered tax agent or BAS agent. Engaging an agent can offer advantages, including extended lodgment and payment deadlines for most quarterly BAS statements, typically an extra four weeks. Alternatively, for those who prefer traditional methods, lodging by mail using a paper form remains an option, though it generally does not come with the same deferrals as online or agent lodgment.

Standard quarterly BAS due dates are the 28th day of the month following the end of the quarter. If a due date falls on a weekend or public holiday, the deadline extends to the next business day.

• For the quarter ending September 30, the BAS is due on October 28.
• For the October to December quarter, the BAS is due on February 28.
• For the January to March quarter, the BAS is due on April 28.
• For the April to June quarter, the BAS is due on July 28.

Monthly BAS lodgers, typically businesses with a GST turnover exceeding $20 million or those with significant PAYG withholding obligations, have a due date of the 21st day of the following month. For businesses that elect to lodge annually, the due date for their BAS and associated payments is generally October 31. After lodging, businesses receive confirmation, and any associated payments due must be made by the specified deadline to avoid penalties.