If your business is registered for GST, the Business Activity Statement is the form that keeps coming back — usually every quarter. Most of the stress around BAS comes from two things: not knowing what it covers, and leaving the bookkeeping until the week it is due. Both are fixable.
What a BAS actually reports
- GST — the GST you collected on sales, minus the GST credits on your business purchases. The difference is what you pay (or get refunded).
- PAYG withholding — tax you withheld from employees' wages.
- PAYG instalments — pre-payments towards your own income tax, if the ATO has put you in the instalment system.
- Depending on your business: fuel tax credits, wine equalisation tax and a few others.
When is it due?
Most small businesses lodge quarterly. The standard due date is about four weeks after each quarter ends — but lodging through a registered tax or BAS agent generally gives you extra weeks on most quarters. Monthly lodgers (larger businesses) have tighter deadlines.
Worth knowing: even in a quarter with no activity, a registered business must still lodge — a "nil BAS" takes two minutes, but ignoring it triggers ATO follow-up and possible failure-to-lodge penalties.
The GST mistakes we fix most often
- Claiming GST on things that don't have it — bank fees, residential rent, many insurances (the stamp duty portion), overseas software subscriptions without Australian GST.
- Claiming the full GST on mixed-use purchases — a vehicle or phone used partly for private purposes needs apportioning.
- Cash vs accrual confusion — reporting on a different basis than your registration says.
- Missing GST on unusual income — selling business equipment or a vehicle is still a taxable sale.
- No tax invoice — for purchases over $82.50 you need a valid tax invoice to claim the credit.
How to make BAS painless
- Use cloud software (Xero, MYOB, QuickBooks) with bank feeds switched on — most of the data entry disappears.
- Reconcile monthly, not quarterly. Twenty minutes a month beats a lost weekend.
- Put the GST you collect into a separate savings account as you go — the payment is then a non-event.
- Let your agent lodge — you get the extended deadlines and a second set of eyes on the numbers.
This article is general information only and does not take your personal circumstances into account. It is not tax, legal or financial advice. Speak to a registered tax agent about your own situation before acting.