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What is BAS (Business Activity Statement)?
What is a BAS statement?
A Business Activity Statement (BAS) is a tax document that reports a business’s various tax obligations to the Australian Taxation Office (ATO). Businesses registered for Goods and Services Tax (GST) are required to submit it monthly or quarterly.
A BAS helps businesses report and pay their tax liabilities accurately. This includes:
- GST: Businesses must report the GST collected on sales and the GST paid on purchases.
- PAYG withholding tax: This involves reporting the tax withheld from employee wages.
- Other taxes: Depending on the business activities, this may include fringe benefits tax, fuel tax credits, luxury car tax, and wine equalisation tax.
When to lodge BAS
Lodging the BAS on time is crucial for compliance with ATO regulations. Late submissions can result in penalties. Therefore, businesses are encouraged to maintain accurate records of their financial transactions throughout the reporting period to facilitate smooth BAS preparation.
Businesses typically lodge their BAS monthly or quarterly, depending on their annual turnover.
Monthly lodgment
Required for businesses with a turnover exceeding $20 million.
Quarterly lodgment
Required for businesses with a turnover of $10 million to $20 million.
Annual lodgment
Available for businesses with a turnover that is less than $10 million, although they still need to make quarterly GST payments.
BAS submission due dates
The BAS due dates vary based on the reporting period:
| Monthly period | Lodgement due date |
|---|---|
| January to December | Every 21st day of the next month |
| Quarterly period | Lodgement due date |
|---|---|
| July to August | Every 28th day of October |
| October to December | Every 28th day of February |
| January to March | Every 28th day of April |
| April to June | Every 28th day of July |
How to lodge BAS
BAS lodgement can be done through three different channels:
Online lodgement
Lodging BAS online is the most common method, allowing businesses to report to the ATO electronically. This method is quick, secure, and convenient since it enables you to lodge at the time that suits you. You get faster refunds and assistance, which can help you avoid mistakes.
You can lodge online through the following:
- ATO Online Services for Business: A secure platform for managing business tax affairs.
- myGov: For sole traders linked to the ATO.
- SBR-enabled Software: Accounting software that allows direct lodgment.
Through a tax or BAS agent
A registered agent can handle the lodgment process on your behalf. They can also access reminder messages from the ATO and manage your BAS submissions efficiently.
By mail
Although less common today, you can still send a completed paper BAS form using the pre-addressed envelope provided in your BAS package. If you make any mistakes, you can correct them with white-out. If you lose the envelope, send your BAS to:
Australian Taxation Office
Locked Bag 1936
ALBURY NSW 1936
It is crucial to lodge your BAS on time to avoid penalties from the ATO. If you cannot pay the full amount owed, ensure that you at least lodge your BAS by the due date and contact the ATO to discuss payment options.