If you’re running a business in Australia, you’ve probably heard of the Business Activity Statement, or BAS for short. It’s not just another piece of bureaucratic jargon; it’s a crucial part of managing your finances.
BAS is like a financial report card that Aussie businesses must submit regularly to the Australian Taxation Office (ATO). In this article, we’ll dive into the world of BAS, unraveling its purpose, how it works, and why it matters to your business.
Whether you’re a seasoned entrepreneur or just starting, understanding BAS will help you stay on top of your tax obligations and keep your business financially healthy.
What Exactly Is A Business Activity Statement (BAS)
Think of a BAS as a financial report card for your business, but instead of grades, it’s all about your taxes.
From my experience working with Australian business owners, I’ve found that many initially confuse BAS with income tax returns. Let me clear this up right away: BAS does not report income tax. Rather, it’s a consolidated form that Australian businesses submit to the Australian Taxation Office (ATO) to report and pay several tax obligations in one go.
The beauty of BAS is its consolidation of multiple tax requirements:
- Goods and Services Tax (GST)
- Pay As You Go (PAYG) withholding amounts
- PAYG income tax installments
- Other taxes like luxury car tax, wine equalization tax, and fuel tax credits
When I explain BAS to ProfitBooks clients, I describe it as a streamlined approach that significantly reduces their administrative burden. Instead of filing separate reports for each tax obligation, they get one form to rule them all. Pretty convenient, right?
Business Activity Statement (BAS) Sample Lodgement
Information You Need To Lodge BAS
Lodging your company’s business activity statement is a task, but an easy one.
You should keep track of the GST you’ve gathered from your sales and the GST you’ve paid on your purchases. While you don’t have to send in your tax invoices when you submit your BAS, it’s important to keep them handy, just in case the ATO wants to check them later.
Since your BAS might be used for various tax purposes, you might also need to share more details about your business, its earnings, and any staff you have on board.
It is recommended that you read about the business activity statement on the official ATO website.
Who Needs to Lodge a BAS?
In my decade of working with Australian businesses through ProfitBooks, I’ve noticed this is where confusion often begins. Here’s the straightforward answer:
You must lodge a BAS if:
- Your business is registered for GST (mandatory when annual turnover exceeds $75,000, or $150,000 for non-profit organizations)
- You have PAYG withholding obligations (i.e., you have employees)
- You’re claiming fuel tax credits
- You operate a taxi or ride-sharing service (regardless of turnover)
I remember working with a small craft business owner who thought she was exempt because her revenue was “only” $85,000. She was quite surprised when I explained that she had passed the GST threshold and needed to register—and subsequently lodge BAS returns.
This simple oversight could have resulted in substantial penalties!
Even if your turnover is below the threshold, you might have voluntarily registered for GST (which some businesses do to claim GST credits or appear more professional to larger clients).
In that case, you’ll need to lodge a BAS as well.
If you’re unsure about your specific situation, I always recommend checking the official ATO guidelines or speaking with a registered BAS agent.
Am I Eligible For Business Activity Statement (BAS)?
In Australia, most businesses are eligible to lodge a Business Activity Statement or BAS.
If you’re running a business that is registered for the Goods and Services Tax (GST), which is generally required if your annual turnover is $75,000 or more (or $150,000 or more for non-profit organizations), you’ll need to submit a BAS.
Additionally, businesses operating as sole traders, partnerships, companies, or trusts are also typically required to lodge BAS.
However, it’s crucial to check with the Australian Taxation Office (ATO) or a tax professional to ensure your specific business meets the eligibility criteria and stays compliant with BAS requirements.
Before you read further on how to lodge a BAS in Australia, we recommend that you read our guide on the taxes that businesses have to pay in Australia.
This will help you get a better understanding of how the taxation system works in the land down under.
How To Prepare Your BAS
Over the years, I’ve helped hundreds of Australian business owners streamline their BAS preparation. Here’s the process I recommend:
- Set up a proper accounting system.
I’ve seen too many businesses struggle with manual calculations or basic spreadsheets. Modern accounting software (like ProfitBooks) automatically tracks GST on sales and purchases, categorizes transactions correctly, and generates BAS-ready reports. This alone can save you hours of work and dramatically reduce errors.
- Maintain real-time records
The most stressed-out business owners I meet are those who leave everything until the last minute. By recording transactions daily or weekly in your accounting system, you’ll have most of the work done before BAS season even arrives.
- Reconcile your accounts
Before preparing your BAS, reconcile your bank accounts, accounts receivable, and accounts payable to ensure all transactions are properly recorded. I’ve found this reconciliation process catches about 90% of potential errors before they become problems.
- Review GST classifications
One of the most common mistakes I see is incorrect GST classification. Not all sales are taxable, and not all purchases include claimable GST. Take time to verify that your transactions are correctly coded.
- Generate and review BAS report.s
With proper setup, your accounting software should generate BAS reports automatically. Review these carefully, looking for unusual amounts or significant changes from previous periods.
- Lodge your BAS
Once you’re confident in your figures, it’s time to lodge. I’ll cover the lodgment options in detail below.
Procedure To Lodge BAS In Australia
Making sure you submit your BAS (Business Activity Statement) and pay any outstanding amounts on time is crucial.
Now, you’ve got a few choices when it comes to sending in your BAS and reporting stuff like GST, PAYG installments, PAYG withholding tax, and other taxes to the Australian Taxation Office (ATO).
If you’re unaware of the PAYG system in Australia, you can refer to our sole trader tax guide, in which we’ve extensively talked about this.
If you’re looking to get detailed instructions on how to pay your business activity statement, it’s recommended that you refer to the official guide on BAS payment by ATO.
Lodgment Frequency and Due Dates
Based on my experience helping Australian businesses, understanding your lodgment schedule is crucial. Your BAS lodgment frequency is determined by your business size:
Monthly BAS Lodgment in Australia:
- Who: Businesses with GST turnover exceeding $20 million (mandatory)
- Due date: 21st day of the following month
- Key dates for 2025-2026:
- July 2025 BAS: Due 21 August 2025
- August 2025 BAS: Due 21 September 2025
- And so on…
Quarterly Lodgment of BAS
- Who: Most small to medium businesses with turnover below $20 million
- Quarterly BAS Lodgment Key Dates:
– Quarter 1 (July-September 2025): Due 28 October 2025
– Quarter 2 (October- December 2025): Due 28 February 2026
– Quarter 3 (January-March 2026): Due 28 April 2026
– Quarter 4 (April- June 2026): Due 28 July 2026
Annual Lodgment Dates for BAS in Australia:
- Who: Some small businesses with turnover below $10 million (by application)
- Note: Even with annual lodgment, you’ll still make quarterly GST installment payments
- Due date: 31 October (following the end of the financial year)
I’ve noticed many businesses aren’t aware that using a registered BAS agent gives you additional time. For quarterly lodgers, a BAS agent can extend your deadline to the 25th of the second month (e.g., Q1 would be due 25 November instead of 28 October).
What Are The BAS Lodgement Options?
Lodge BAS Online
Many businesses handling their BAS (Business Activity Statement) often choose the electronic path. It offers some clear advantages:
First, it’s flexible. You can submit your BAS when it suits your schedule.
Plus, there’s a handy two-week deferral option. This means you get an extra two weeks to both lodge and pay your BAS, which can be quite helpful.
If you’re due for a refund, going electronic could speed up the process. Who doesn’t want their money faster, right?
Lastly, it’s a great way to avoid errors. You can double-check everything before hitting that ‘submit’ button, ensuring that your numbers match your expectations.
Please go through the official BAS lodgement guide by ATO to know the exact procedure of lodgement specific to your type of business. They have three types of online lodgement options based on the legalities of your company registration type.
Mail Your Business Activity Statement
When it comes to sending in your completed BAS form, you can use the pre-addressed envelope that comes with your BAS package.
If you happen to make a mistake on your paper BAS, don’t fret – you can simply use white-out to correct it.
But if that pre-addressed envelope goes missing, no worries.
You can send your BAS to this address instead:
Australian Taxation Office
Locked Bag 1936
ALBURY NSW 1936
And if you’ve lost or haven’t received your paper BAS in the first place, just give us a call at 13 28 66 to get a copy.
Please keep in mind that mailing isn’t an option if you’re lodging your BAS through an online channel.
Lodge Your Business Activity Statement Via Your BAS Agent
Here’s a useful option: You can have a registered tax or BAS agent handle the lodging, varying, and payment process for you using their preferred electronic platform.
When you go this route:
- Your agent can see any BAS and reminder messages that come your way through their online service.
- You can still check your BAS yourself via Online services for business or myGov, even if your agent is managing it on your behalf.
If you’re interested in finding a registered agent, you can visit the Tax Practitioners Board for assistance.
Lodge BAS By Phone (Especially if you have nothing to report)
If you’ve got nothing to report for the period and need to submit a ‘nil’ BAS, there’s a handy service for that:
You can do it by phone on 13 72 26. It’s automated, so you can call at any time, 24/7.
Just make sure you’ve got your BAS document identification number (DIN) ready when you call.
Penalties for Late BAS Submission: What’s at Stake
In my years working with Australian businesses, I’ve seen how quickly late lodgment penalties can accumulate.
The ATO has strengthened enforcement post-pandemic, with small business debt rising from $26.5 billion in 2019 to over $50 billion in 2023.
Failure to Lodge (FTL) Penalties
The penalties are structured based on business size and delay duration:
| Days Late | Small Business (under $10M) | Medium Business ($10M-$20M) | Large Business (over $20M) |
| 1-28 days | $330 | $660 | $1,650 |
| 29-56 days | $660 | $1,320 | $3,300 |
| 57-84 days | $990 | $1,980 | $4,950 |
| 85+ days | $1,650 | $3,300 | $8,250 |
These penalties are non-deductible and compound with General Interest Charges (GIC), which are currently at 11.38% annually.
I once worked with a business owner who ignored BAS for three quarters. By the time they came to me for help, they faced over $5,000 in penalties alone. This is not including the actual tax owed!
The critical takeaway: Even if you can’t pay, lodge on time. This prevents FTL penalties and keeps options open for payment arrangements.
Common BAS Errors and How to Fix Them
Through ProfitBooks, I’ve helped businesses identify and correct numerous BAS errors. Here are the most common ones I see:
- GST Misclassification
Error: Treating GST-free items (like basic food, exports, or health services) as taxable or vice versa. Solution: Set up proper tax codes in your accounting software and review ATO guidelines on GST-free supplies.
- Incorrect Wage Reporting
Error: Listing gross wages under GST label G11 instead of W1. Solution: Use separate payroll accounting modules to isolate PAYG data.
- Cash Transaction Oversights
Error: Forgetting to include cash sales or petty cash purchases. Solution: Implement a daily reconciliation process for all cash transactions.
- Rounding Errors
Error: BAS requires whole-dollar figures; cents trigger rejection. Solution: Configure your accounting software to round to whole dollars for BAS reporting.
- Mixed Accounting Methods
Error: Switching between cash and accrual accounting without ATO approval. Solution: Choose one method and stick with it consistently.
If you discover errors after lodgment:
- For minor errors (under $10,000): Adjust on your next BAS
- For significant errors: Submit a revised BAS through the same lodgment channel
Industry-Specific BAS Considerations
One area I’ve noticed lacks coverage in most guides is industry-specific BAS requirements. Through my work with various Australian sectors, I’ve gathered some insights:
Construction Industry
- GST on progress payments can get complicated—the timing of when to report GST differs based on contract terms
- Builder’s warranty insurance often has special GST treatment
- Track materials separately from labor for proper GST calculation
Hospitality
- Take-away food vs. dine-in has different GST implications
- Staff meals and complimentary items have specific GST rules
- Alcohol has different tax requirements than food
E-commerce and Digital Services
- International sales may be GST-free but require special documentation
- Imported digital services have unique GST requirements
- Dropshipping arrangements need careful GST consideration
Professional Services
- Long-term contracts may have special GST timing issues
- Professional development expenses have specific GST rules
- Home office expenses require careful allocation for GST claims
Strategic BAS Planning
Through my work with ProfitBooks, I’ve helped Australian businesses transform BAS from a compliance burden into a strategic financial tool.
Here’s how:
- Cash Flow Management
Align major purchases with your BAS cycle.
If you know you’ll have a large GST liability in a particular quarter, consider timing significant business purchases in that same quarter to offset some of the GST payable.
I worked with a retail client who reduced their cash flow pressure by scheduling their store renovation to coincide with their highest sales quarter. The GST credits on renovation expenses partially offset the high GST collected on sales.
- Timing Your BAS Lodgment
While you should always lodge by the deadline, you have flexibility within that timeframe. If you’re expecting a refund, lodge as early as possible. If you owe money, consider lodging closer to the deadline (but never late!) to maximize your cash flow.
- Technology Integration
This is where I’ve seen the biggest improvements for my Australian clients. Modern cloud accounting software like ProfitBooks can do the following:
- Automatically calculate GST on transactions
- Generate BAS-ready reports with a single click
- Integrate with bank feeds for accurate record-keeping
- Flag potential GST classification errors before they become problems
One client reduced their BAS preparation time from two full days to just 45 minutes after implementing ProfitBooks’ automated GST tracking.
Wrapping Up: Where’s My BAS in Australia?
How you choose to lodge your business activity statement affects how you receive your statements. If you opt for Online business services, your next statement will be accessible there.
When you use ATO’s online services, we’ll send you an email notification 21 days before the due date, letting you know when your BAS becomes available. Just ensure your contact details are current.
It’s worth noting that a single electronic lodgment can alter the way your next BAS is issued. After your online submission, your business activity statement or BAS in Australia will be sent electronically.
Preparing your business activity statement requires a lot of financial tracking, especially keeping track of taxes, invoices, payroll, and much more.
ProfitBooks is a great solution for tracking all your finances in one place!
As a cloud accounting software, ProfitBooks travels with you, wherever you work. We’d recommend you give it a try and get a 100% FREE account now!
Also Read:
Australian Business Number (ABN) Guidelines
What Taxes Do Small Businesses Pay In Australia?
What Is VAT or GST In Australia?
