What is BAS? A Guide for Australian Small Business Owners

What is BAS? If you're running a small business in Australia, you've likely come across the term BAS. It stands for Business Activity Statement, and it's a fundamental part of managing your business taxes and staying compliant with the Australian Taxation Office (ATO). For many business owners, especially those just starting out, BAS can seem confusing at first, but understanding what it is, when to lodge it, and what it covers can make tax time a lot less stressful.

Here’s everything you need to know about BAS in plain English.

What is a Business Activity Statement (BAS)?

A BAS is a form that businesses use to report and pay several types of taxes to the ATO. If your business is registered for Goods and Services Tax (GST), you're required to lodge BAS regularly. The BAS helps the ATO keep track of your tax obligations, and it ensures you’re paying (or claiming back) the right amount of tax.

When you fill out your BAS, you’ll report things like:

• GST collected and paid
• PAYG (Pay As You Go) withholding
• PAYG instalments
• Other taxes like Fringe Benefits Tax (FBT), Wine Equalisation Tax (WET), and Luxury Car Tax (LCT), if they apply to your business

Who needs to lodge a BAS?

If your business is registered for GST, meaning your annual turnover is $75,000 or more ($150,000 for non-profit organisations), then lodging a BAS is mandatory. Even if you’ve had a quiet quarter or haven't made any sales, you still need to submit your BAS to report that.

When do you need to lodge your BAS?

Most small businesses lodge their BAS quarterly, although some businesses lodge monthly or annually, depending on their size and ATO requirements. The ATO will notify you of your due dates, but typically:

• Quarterly BAS is due 28 days after the end of the quarter
• Monthly BAS is due on the 21st of the following month

If you lodge your BAS through a registered tax or BAS agent, you may be eligible for extended deadlines.

What do you need to include in your BAS?

A typical BAS form will include sections to report:

• GST on sales and GST on purchases
• Total sales and export sales
• PAYG withholding (if you pay employees)
• PAYG instalments (your income tax instalments)
• Other relevant taxes if applicable

The exact sections on your BAS will depend on what you're registered for with the ATO.

How do you lodge your BAS?

You can lodge your BAS:

• Online through the ATO’s Business Portal
• Through your myGov account (linked to the ATO)
• Via your bookkeeper, tax agent, or BAS agent
• By mail, using a paper form (although this is becoming less common)

Lodging online is usually faster and gives you more time to correct any errors.

Why is BAS important?

Accurate and timely BAS lodgement is critical for a few reasons:

1. Avoiding penalties – Late or incorrect BAS lodgement can lead to interest charges and penalties from the ATO.
2. Cash flow management – BAS helps you stay on top of your tax obligations so you’re not caught off guard when it’s time to pay.
3. Claiming GST credits – If your business purchases goods or services with GST, you can claim that back via your BAS.

Tips to make BAS easier

• Keep good records: Use accounting software like Xero, MYOB or QuickBooks to track your income, expenses, and GST throughout the period.
• Set aside tax money: Instead of scrambling to find funds at BAS time, allocate a portion of your income to a tax savings account.
• Work with an accountant: A registered tax or BAS agent can ensure your BAS is accurate and submitted on time, and they can help you with tax planning.
• Don’t leave it to the last minute: The earlier you prepare, the more time you have to fix any errors or organise payments.

Need help with your BAS?

At Wotton & Co, we work with small and family-owned businesses across South Australia to take the stress out of tax time. Whether you need help preparing your BAS, managing cash flow, or understanding your GST obligations, our experienced team is here to support you.