What Is a BAS and Who Needs to Lodge It?
- johnry8
- Sep 23
- 2 min read
Running a business means keeping track of a lot of moving parts, and tax compliance is one of the big ones. One of the most important forms for Australian businesses is the BAS or Business Activity Statement.
If you’re registered for GST or pay Wages, you’ll need to lodge a BAS regularly. But many business owners find it confusing or stressful, especially when juggling everything else.
This guide will help break it down clearly. Whether you're new to business or just need a refresher, understanding your BAS helps you stay on the right side of the ATO, avoid penalties, and manage your cash flow better.
What Is a BAS?
A Business Activity Statement is a form you submit to the ATO to report and pay for certain taxes, including:
Goods and Services Tax (GST)
Pay As You Go (PAYG) withholding
PAYG instalments
Other taxes like fringe benefits or wine equalisation tax, if they apply
Think of it as a snapshot of your business’s tax obligations for a specific period.
Who Needs to Lodge a BAS?
If your business is registered for GST, you’re required to lodge a BAS. Generally, that means you have an annual turnover of $75,000 or more ($150,000 for non-profits).
You might need to lodge:
Monthly
Quarterly
Annually
The ATO will tell you how often you're expected to lodge. It’s important to keep up with the schedule to avoid interest charges or penalties.
What Should Be Included in Your BAS?
Here’s what you typically need to report:
GST collected from sales
GST paid on business purchases
Wages paid and PAYG withheld
PAYG instalments based on your business’s income
Make sure your records are up to date and accurate. Even small errors can add up and cause issues later.
Common BAS Pitfalls and How to Avoid Them
From our experience working with small businesses, here are a few things to watch out for:
Avoid lodging late. Missing deadlines can mean fines or loss of good-standing status. Mark due dates on your calendar or work with a tax agent who can manage it for you.
Reconcile your accounts first. Make sure your accounting software matches your actual business bank statements before lodging.
Don’t guess figures. Always base your BAS on actual data. Estimates can lead to underpayment or overpayment and trigger ATO scrutiny.
Keep documentation. If the ATO ever reviews your BAS, you’ll want to have invoices and receipts on hand to back it up.
Best Practices for BAS Lodgement
Use accounting software that integrates directly with the ATO
Set reminders for your lodgement dates
Review your reports with a bookkeeper or accountant
Stay on top of payroll and GST coding
Even if your business is small, having professional support can help you stay compliant and confident come BAS time.
Not sure if you’re lodging correctly or just want to hand it over to someone you trust?