If you’re running a business in Australia, chances are you’ve heard about BAS — but what exactly is it? And why does everyone make such a fuss about it?
Let’s break it down in everyday language, and by the end, you’ll feel confident about handling your BAS like a pro.
So, What is BAS?
BAS stands for Business Activity Statement.
It’s a form that businesses must fill out and send to the Australian Taxation Office (ATO) to report their taxes. Sounds scary? It’s not as bad as it sounds — I promise!
Basically, through your BAS, you let the government know how much money you owe in GST, PAYG withholding, PAYG instalments, and other business taxes.
Think of BAS as a kind of scorecard where you show the tax office how your business is doing.
Anecdote:
When I started my first café in Melbourne, the thought of lodging my BAS gave me sleepless nights. But once I got the hang of it (and found the right accountant!), it became as routine as making a flat white.
Who Needs to Lodge a BAS?
You must lodge a BAS if:
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Your business is registered for Goods and Services Tax (GST).
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You have a turnover of $75,000 or more annually.
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You employ staff and need to withhold tax.
If you’re not sure whether this applies to you, the best thing you can do is check the ATO’s guidelines or chat with an expert like Perfect Accounting — they can guide you without all the confusing jargon.
How Often Do You Have to Lodge a BAS?
Depending on the size of your business, you may need to lodge your BAS:
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Monthly — if your GST turnover is $20 million or more.
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Quarterly — for most small to medium businesses.
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Annually — if you voluntarily registered for GST and your turnover is under $75,000.
Most businesses file quarterly, which isn’t too bad once you get a good system in place!
What Information Goes into a BAS?
Here’s what you typically need to report:
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GST collected on sales.
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GST paid on purchases.
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PAYG withholding amounts for your employees.
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PAYG instalments if you’re pre-paying income tax.
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Other taxes like Fuel Tax Credits if they apply.
Pro Tip: Always keep your invoices and receipts organized. Trust me, it makes BAS time a thousand times easier.
Step-by-Step Guide: How to Lodge Your BAS
Now, let’s walk through the basic steps you’ll need to lodge your BAS:
Step 1: Keep Good Records
Throughout the year, make sure you record every sale and every expense.
Use accounting software like Xero or MYOB.
Step 2: Work Out Your GST
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Add up all the GST you collected.
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Add up all the GST you paid on business expenses.
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Subtract the second from the first — that’s the GST you either owe or get back!
Step 3: Calculate Your PAYG Obligations
If you have employees, work out how much tax you withheld from their wages.
Step 4: Complete Your BAS Form
You can fill it out online via the ATO’s Business Portal, through your myGov account linked to the ATO, or via your accountant.
Step 5: Lodge and Pay (If Needed)
Make sure you submit the form and pay any amounts due by the deadline.
Step 6: Keep Copies
Always keep a record of your lodged BAS forms for at least 5 years, just in case the ATO comes knocking.
Why Is Lodging BAS Important?
Ignoring or messing up your BAS can lead to:
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Penalties and fines from the ATO
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Cash flow problems
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Unnecessary stress!
Plus, lodging on time keeps your business reputation clean and gives you peace of mind.
Common BAS Mistakes to Avoid
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Forgetting to include all income.
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Claiming GST credits without valid tax invoices.
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Missing the due date.
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Miscalculating GST on non-taxable sales (like exports).
Anecdote:
A mate of mine once forgot to lodge his BAS on time three quarters in a row. Not only did he cop late fees, but it also made it hard for him to get a business loan later. Lesson learned: treat your BAS seriously!
Need Help? Let Perfect Accounting Handle It for You!
Managing your BAS can be overwhelming, especially when you’re busy growing your business. That’s where Perfect Accounting steps in.
Perfect Accounting offers:
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BAS preparation and lodgment services
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Tailored tax advice to minimize what you owe
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Friendly, plain-English explanations — no confusing tax-speak
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Reliable reminders so you never miss a deadline
With their expert team, you can stop worrying about tax forms and get back to doing what you love.
Trust Perfect Accounting to make BAS simple, stress-free, and even… dare we say, enjoyable!
“Perfect Accounting has been an absolute lifesaver for my business. Now, BAS time feels like just another tick on my to-do list.” — Happy Customer
Final Thoughts
Handling your BAS doesn’t have to be scary.
With a little understanding, good record-keeping, and the right support, it can become just another part of running your successful business.
When in doubt, remember: you’re not alone. Experts like Perfect Accounting are just a phone call away, ready to make your tax journey smooth and stress-free.
FAQ
What happens if I lodge my BAS late?
The ATO can charge penalties and interest. It’s best to lodge even if you can’t pay immediately.
Can I do BAS myself or should I hire an accountant?
You can do it yourself, but hiring a professional like Perfect Accounting ensures accuracy and peace of mind.
What if I make a mistake in my BAS?
You can usually fix small mistakes in your next BAS. For bigger errors, you may need to amend your form or contact the ATO.
