Definition
A BAS (Business Activity Statement) is the form Australian businesses registered for GST lodge with the Australian Taxation Office to report and pay GST, PAYG withholding, PAYG instalments, and other taxes. Most small businesses lodge it quarterly. The GST figures come from the tax invoices you issued and received in the period.
Also called: Business Activity Statement, Quarterly BAS
BAS in practice
Quarterly BAS is usually due on the 28th of the month after the quarter ends, with the December quarter due on 28 February. Lodging through a registered tax or BAS agent can give you more time.
On the BAS you report GST on sales, GST credits on purchases, and the net amount payable or refundable. Depending on turnover, you report GST on a cash basis, when payment is received, or on an accrual basis, when you invoice.
Businesses with GST turnover of $20 million or more must lodge monthly, and some voluntarily registered small businesses can report GST annually.
Example
In the September quarter, a Brisbane plumber issues invoices including $8,000 of GST and pays $2,300 of GST on supplies. Her BAS, due 28 October, shows $5,700 of GST payable.
Frequently Asked Questions
Do I need to lodge a BAS if I am not registered for GST?
Generally no, unless you have PAYG withholding or instalment obligations. Once you register for GST, at $75,000 turnover or voluntarily, you must lodge a BAS for every period.
What happens if I lodge my BAS late?
The ATO can charge a failure to lodge penalty and general interest on unpaid amounts. If you cannot pay on time, lodge anyway and contact the ATO about a payment plan.
Related terms
- GST GST (goods and services tax) is a broad consumption tax applied to most goods and services, functioning like VAT.
- ABN An ABN, or Australian Business Number, is an 11-digit number that identifies a business to the Australian government and other businesses.
- Input tax credit An input tax credit is the VAT or GST a registered business paid on its own purchases, which it can deduct from the VAT or GST it collected on its sales.
- Tax invoice A tax invoice is an invoice that meets the legal requirements for the buyer to claim a tax credit, typically under a VAT or GST system.
- Cash basis Cash basis accounting records revenue when payment is actually received and expenses when they are actually paid.
- Accrual basis Accrual basis accounting records revenue when it is earned and invoiced, and expenses when they are incurred, regardless of when cash changes hands.
This page is for general information only and is not legal, tax, or financial advice. Rules change and vary by location, so consult a qualified lawyer or accountant about your situation.