BAS lodgement is not just another admin task. It is a critical part of running a compliant business in Australia. Yet, many business owners get it wrong, leading to penalties, cash flow issues, or even ATO audits.
Are you reporting GST correctly? Keeping track of PAYG? Ensuring your records match your BAS submissions? If any of this sounds overwhelming, you are not alone.
The key is understanding what is required and avoiding common traps. In this guide, we will break it all down—what BAS is, why it matters, and how to lodge it with confidence.
What is a BAS (Business Activity Statement) and Why Does It Matter?
A Business Activity Statement (BAS) is a form businesses use to report their tax obligations to the Australian Taxation Office (ATO). If your business is registered for Goods and Services Tax (GST), you must lodge a BAS either monthly, quarterly, or annually—depending on your turnover and reporting obligations.
Your BAS covers:
GST – What you collect from customers and what you claim back on purchases.
PAYG (Pay As You Go) Withholding – The tax you withhold from employees’ wages.
PAYG Instalments – Prepaid income tax for businesses.
Other taxes – Including luxury car tax, wine equalisation tax, and fringe benefits tax (if applicable).
Do You Even Need to Lodge a BAS?
Not every business needs to lodge a BAS. The key factor? Whether you are registered for GST. Here is a quick rule of thumb:
- If your business turnover is under $75,000 (or $150,000 for non-profits), GST registration is optional. No GST = no BAS.
- If your business turnover is $75,000 or more, you MUST register for GST and lodge BAS.
- If you are a rideshare driver or taxi operator, you must register for GST and lodge a BAS—even if your earnings are below the threshold.
Common BAS Mistakes That Could Cost You
It is easy to get caught up in the daily grind and overlook small details in your BAS lodgement. But those “small” mistakes can have serious consequences. Here are some of the most common errors businesses make:
Forgetting to report all GST transactions – Missing even a few transactions can lead to underpayment or overpayment.
Confusing GST-free and input-taxed sales – Not every product or service includes GST. Mixing these up could mean claiming incorrect credits.
Incorrectly classifying business and personal expenses – The ATO will not be thrilled if you claim GST credits on personal purchases.
Failing to reconcile BAS with financial records – If your BAS does not match up with your bookkeeping, expect some serious questions from the ATO.
Neglecting PAYG obligations – Forgetting to withhold tax from employees’ wages is a big no-no.
How to Lodge Your BAS (Without the Stress)
Lodging your BAS does not have to be a nightmare. Here are your options:
- Online via the ATO Business Portal – Fast, efficient, and the ATO even gives you an extra two weeks to lodge.
- Through a Registered BAS or Tax Agent – Perfect if you want an expert to handle it and avoid mistakes.
- Paper Lodgement – For businesses that prefer the old-school method (though it is slower and less efficient).
Once lodged, you will need to pay any tax owed via BPAY, credit/debit card, or direct transfer. Missing the deadline? Expect penalties. If you are struggling to pay, contact the ATO ASAP—they might set up a payment plan.
Deadlines You Can’t Afford to Miss
BAS deadlines vary based on your reporting cycle:
Quarterly Lodgers (most small businesses):
- Q1 (Jul–Sep): Due 28 Oct
- Q2 (Oct–Dec): Due 28 Feb
- Q3 (Jan–Mar): Due 28 Apr
- Q4 (Apr–Jun): Due 28 Jul
Monthly Lodgers (larger businesses with $20M+ turnover): BAS is due on the 21st of the following month.
Annual Lodgers: BAS is due 31 Oct (unless you don’t have to lodge a tax return, then it is due in Feb the following year).
If you lodge online, the ATO gives you extra time for quarterly lodgements—so it is worth using the digital option.
Final Thoughts
BAS might seem like just another administrative hassle, but ignoring it can land you in serious trouble. Late lodgements mean fines. Inaccurate reporting can trigger audits. And unpaid taxes? That is a recipe for financial disaster.
So, what is the best way to stay compliant?
Use accounting software – Tools like Xero, MYOB, or QuickBooks can help track your GST, PAYG, and other tax obligations in real-time.
Hire a BAS agent – If you are unsure about BAS, getting professional help can save you time (and potential penalties).
Set reminders – The ATO will not remind you when your BAS is due. Make sure you do not miss deadlines.
Staying on top of BAS means less stress, fewer penalties, and more time to focus on growing your business. If you are not sure where to start, now is the time to get your records in order and take control of your tax obligations.
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