A BAS, or business activity statement, is the form the ATO issues to a business so it can report and pay GST, tax withheld from wages, PAYG instalments and other activity statement amounts for a reporting period. If you are registered for GST, the ATO generates your statement automatically at the end of each cycle, and you must lodge it even in a quarter with no sales and no purchases.
This guide is written for sole traders, partnerships, trusts and company directors who handle their own reporting or want to understand what their bookkeeper is preparing. It covers who has a reporting obligation, what each labelled field is asking for, how to choose and change a reporting cycle, which lodgement channel gives you the most time, and the records the ATO expects you to keep behind every figure. Practical trade-offs, not just definitions, sit under each heading.
- A BAS is the activity statement the ATO issues so a business can report GST, wage withholding, PAYG instalments and similar amounts for a set period.
- You only need to lodge a BAS if you are registered for GST or have another activity statement obligation, such as tax withheld from wages.
- Quarterly reporting is the most common cycle, with quarterly statements generally due on the 28th of the month after the quarter ends, except the December quarter which falls in late February.
- Lodging online or through a registered agent usually attracts a later due date than paper, so your channel choice affects your deadline as well as your workload.
- Keep tax invoices, payroll records and bank reconciliations for five years so the figures on each statement can be traced back to source records.
A business activity statement is a single return that bundles several separate tax obligations into one form. The ATO pre-fills your details and the labels that apply to your registrations, so two businesses can receive very different statements. The exact fields depend on what you are registered for: GST, PAYG withholding, PAYG instalments, fuel tax credits, wine equalisation tax or luxury car tax amounts. A business that does not collect GST but does withhold tax from wages receives an instalment activity statement instead.
| Label | What the ATO is asking for |
|---|---|
| G1 | Total sales for the period, including GST |
| 1A and 1B | GST on sales and GST credits on purchases |
| W1 and W2 | Gross wages paid and tax withheld from them |
| T7 | PAYG income tax instalment for the period |
Fringe benefit arrangements let an employer provide non-cash benefits such as a work car, a novated lease or entertainment instead of extra salary, which can make a package more attractive without lifting gross wages. The trade-off is a separate FBT return and, for some employers, FBT instalments that appear on the activity statement rather than the annual BAS labels most businesses use.
Two timing points matter. GST credits on benefits you provide are claimed in the period the expense is incurred, so the ATO expects the credit and the benefit to line up. FBT runs on its own year ending 31 March, which does not match your GST quarters.
For example, if you owe a quarterly amount for the September quarter, the statement is generally due on 28 October, and the December quarter is due 28 February. PAYG amounts withheld from cash wages still apply as normal alongside any benefits. Our business operations tax deductions guide explains how employment on-costs are treated.
The GST collect and credit figures for benefits should still be reconciled to your ledger before lodgement, since FBT reporting runs on its own calendar.
Most activity statement errors come from a handful of repeatable habits rather than complex law. The fixes below cost less time than an amendment.
- Claiming GST credits without a valid tax invoice. For purchases over $82.50 including GST, the ATO requires a tax invoice before you claim.
- Claiming the full amount on GST-free or input-taxed items. Basic food, most health services, bank fees and residential rent do not carry GST.
- Treating a wage payment as a business expense only. If you withhold from wages you also have a PAYG obligation on the same BAS.
- Reporting the net amount you owe instead of the gross figures each label asks for.
- Assuming a nil period means you do not need to lodge. A nil statement still has to be reported.
- Mixing private spending into business purchases, then having to unwind the GST credit later.
Reconcile your bank feed to the closing balance before you finalise, and the amount of GST you collect will match your records.
A business activity statement is lodged by reconciling your accounts, entering the figures against the ATO labels, then submitting the completed form and paying any balance by the due date. Work through the sequence below rather than typing figures straight from a bank balance.
- Reconcile every bank and card account for the period so no transaction is missing or duplicated.
- Review your GST coding report and correct anything sitting in the wrong tax code.
- Check payroll totals against your single touch payroll reports before you lodge a BAS with wage labels.
- Enter the figures, then compare them to the prior period for anything that has moved sharply.
- Lodge a BAS through your chosen channel and save the receipt identification number.
- Pay the amount owing, or set up a payment plan with the ATO on 1300661508 if you cannot pay in full.
You can lodge a BAS late and still lodge it yourself, but interest and failure to lodge penalties may apply.
A registered BAS agent is worth engaging when your GST coding involves judgement rather than data entry. Mixed GST-free and taxable sales, imports, property transactions, employee benefits and hire purchase arrangements are the usual triggers. Only a registered tax or BAS agent may charge a fee to prepare and submit your statement, and registration can be checked on the Tax Practitioners Board register.
There are two practical advantages. An agent generally receives a concessional lodgement date, and their compliance work includes a second review of your invoice coding and GST treatment before the bas form is finalised. The cost is the fee plus the time to hand over clean records. If your obligation is a single GST label and nothing else, self-lodging is usually reasonable. The ATO business line on 1300650286 can confirm your registrations.
Three channels are available, and the one you choose changes your deadline. Online services for business and software using standard business reporting both allow you to lodge electronically and generally attract an extra two weeks for quarterly statements. Paper has the earliest due date and no validation checks.
- Online services for business: free, pre-filled, and shows your account balance and prior lodgement history.
- Accounting software: pulls figures straight from your ledger, which reduces transposition errors when you lodge your BAS.
- Paper bas form: posted to you by the ATO, suitable if you have no reliable internet access.
If you withhold from wages, your software channel also keeps payroll and activity statement figures aligned. Businesses that need to lodge nil statements can report a nil result by phone.
Gather the following before you open the form, because stopping halfway is where errors creep in.
- Your ABN and myGovID or Digital ID credentials linked through Relationship Authorisation Manager.
- The document identification number printed on the bas form or shown online.
- Reconciled bank, loan and credit card statements for the full period.
- Tax invoices for purchases where you claim a GST credit.
- Payroll summaries showing gross wages and the tax you withhold.
- Any prior period adjustment or correction you still have to report.
Set aside the closing figures from last period too, since comparing them is the fastest sanity check before you lodge your BAS. Businesses that also need to lodge income tax instalments should confirm the ATO instalment rate shown on the statement rather than estimating. You can lodge once these items reconcile, and our tax deduction calculators show how each deductible figure is worked out.
GST reporting follows registration, not profit. The ATO requires GST registration once your GST turnover reaches $75,000, or $150,000 for a not-for-profit body. Taxi, ride-sourcing and limousine drivers must register for GST from their first dollar of turnover, regardless of size. Once registered, you need to lodge an activity statement BAS for every period until the registration is cancelled.
Below the threshold, GST registration is voluntary. The basic trade-off is that registering lets you claim GST credits on purchases but adds a compliance cycle and means charging GST on every taxable transaction. Businesses selling mainly GST-free goods often still register to recover credits.
PAYG obligations sit separately. You may have no GST but still lodge for PAYG withholding on wages, or lodge for PAYG instalments on business income.
Your reporting cycle depends on GST turnover. The ATO sets monthly reporting for businesses with GST turnover of $20 million or more, quarterly for most others, and allows annual reporting for some voluntarily registered businesses under the threshold. You can ask to move to a more frequent cycle at any time, and changes generally take effect from the start of a quarter.
Monthly reporting means twelve lodgements instead of four, but it smooths cash flow and returns credits faster if you carry heavy expense or capital purchase activity. Quarterly suits businesses with steady invoice volumes. Annual reporting keeps paperwork low but means you submit one large figure and hold the GST you collect for longer, which takes discipline. PAYG withholding cycles are set by the size of the amounts you withhold and can differ from your GST cycle, so check both before you lodge your BAS.
Reporting obligations follow your registrations, the figures follow your reconciled records, and the due date follows your cycle and lodgement channel. Keep invoices and payroll records for five years. Deductit shows the ATO rule and formula behind each deduction calculation, so your supporting workpapers are traceable rather than estimated.
What is BAS in Australia?
A BAS in Australia is the activity statement the ATO issues to report GST, wage tax withheld, PAYG instalments, fuel tax credits and similar amounts for a period. The ATO pre-fills only the labels that match your registrations, so your statement lists the specific obligations you hold. A statement covering nothing but wage tax is issued as an instalment activity statement instead.
What date is BAS due in Australia?
Quarterly statements are generally due on 28 October, 28 February, 28 April and 28 July, with the December quarter given extra time over the holiday period. Monthly statements are due on the 21st of the following month. Lodging electronically or through a registered agent usually adds around two weeks to quarterly dates.
Do I need to do BAS as a sole trader?
A sole trader needs to lodge one only if they are registered for GST or have another activity statement obligation, such as tax withheld from an employee's wages, which is the same test that decides who needs to lodge in any structure. A sole trader under the $75,000 threshold with no employees generally reports business income in the annual tax return instead.
What is the difference between BAS and GST?
GST is the 10 per cent tax itself; the BAS is the form used to report it. The statement also carries PAYG and other amounts, so the two are not interchangeable. What to include in a BAS statement is set by your labels: a statement will include GST on sales and purchases at 1A and 1B, plus any wage withholding and instalment amounts.
Do I need to charge GST if I earn under $75000?
Under $75,000 you do not have to register or charge GST, and you cannot claim GST credits. If you register voluntarily you must charge GST on taxable sales and lodge for every period. Compare this against the small business deductions you can already claim, then lodge accordingly.
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