Let’s get straight to it. What is BAS?
It stands for Business Activity Statement, and if you run a business in Australia, chances are it’s something you’ve either dealt with or need to get your head around. BAS is how the Australian Taxation Office (ATO) keeps track of what your business owes in taxes, what you’ve collected, and what you’re claiming back.
It might seem like just another admin task, but BAS isn’t something to brush aside. If you miss a deadline or make a mistake, you could be hit with penalties or interest charges.
Staying on top of it keeps your business compliant and your finances healthy.
What is a Business Activity Statement?
A Business Activity Statement is a form the Australian Taxation Office sends to businesses so they can report and pay a variety of taxes. The most common one is goods and services tax (GST), but depending on your business, it might also include PAYG withholding, PAYG instalments, fringe benefits tax, luxury car tax, and fuel tax credits.
The frequency you lodge a BAS depends on your situation. Most small businesses report quarterly, but some lodge monthly or annually.
The ATO will let you know what’s required.
Why It’s Worth Paying Attention to BAS
A well-prepared BAS gives you a clearer picture of how your business is performing. It tracks what you’ve earned, what you’ve paid, what tax you’ve collected, and what you might be able to claim back.
It also plays a big part in your cash flow. If you overreport, you might pay more than you should. If you underreport, the ATO will catch it eventually, and that can lead to fines or interest.
Either way, getting it right matters.
Keeping your BAS accurate also makes tax time smoother. When your records are tidy and your reporting is up to date, you’ll avoid last-minute scrambles and reduce the risk of ATO follow-ups.
Sound complicated? Here are the benefits of engaging a BAS agent for your business.
Who Needs to Lodge a BAS?
If your business is registered for GST, you’ll need to lodge a BAS. This applies to sole traders, companies, partnerships, and trusts. In most cases, you’ll need to register for GST when your annual turnover reaches $75,000. For non-profits, the threshold is $150,000.
Even if you’re not charging GST, you might still need to lodge a BAS if you withhold tax from your employees’ wages or pay yourself through PAYG instalments. Some businesses also need to report things like luxury car tax or fuel tax credits, depending on the industry.
If you’re unsure, that’s where a BAS agent or tax agent can step in. They can help you figure out what your obligations are and make sure you’re not missing anything important.
What is BAS Tax?
You might hear people talk about “BAS tax,” but there’s no single tax by that name. It’s just a casual way of referring to all the different taxes included in your BAS.
This could be GST, PAYG withholding, PAYG instalments, fringe benefits tax, fuel tax credits, or luxury car tax. What you report depends on how your business is structured and what it’s registered for.
Should You Use a BAS Agent?
You can lodge your BAS on your own, especially if you use accounting software. But if you’re unsure what to include, have complicated accounts, or just don’t have the time, a registered BAS agent can make the process a lot easier.
They’ll make sure your records are accurate, your lodgement is on time, and your business is claiming what it’s entitled to. They can also help you keep track of due dates, changes to the rules, and any issues with the ATO.
At Advanced Bookkeeping and BAS, we work with businesses across Perth to take the stress out of BAS reporting. We don’t just file forms, we help you stay confident in your numbers and on track with your reporting.
Questions Meet Answers
What is BAS used for?
BAS is used to report and pay the different taxes your business is responsible for. It’s basically how the ATO keeps track of what your business owes, what you’ve already paid, and what credits or refunds you might be entitled to.
Depending on what your business is registered for, this could include things like GST collected from your customers, PAYG tax withheld from employee wages, and even claims for things like fuel tax credits. It’s not just about paying tax, it’s also about making sure your business is claiming what it should and staying compliant with ATO expectations.
Are BAS and GST the same?
They’re related, but not the same thing.
GST, or goods and services tax, is one of the items you report when you lodge a BAS. The BAS is the actual form where you declare not just GST, but also other tax obligations like PAYG withholding and PAYG instalments.
Think of GST as one component of the bigger BAS picture.
If your business is registered for GST, you’ll need to include it in your BAS every time you lodge, but BAS can cover more than just GST.
Do I need to pay BAS?
You don’t exactly “pay BAS,” but you do pay the amounts that are calculated as part of your BAS lodgement. If your BAS shows that you’ve collected more GST than you’ve paid, for example, you’ll need to pay the difference to the ATO. If it shows that you’ve paid more than you’ve collected, you might be due a refund.
Similarly, if you withhold tax from employee wages or make PAYG instalments, those amounts are also payable when you lodge. So while you’re not paying “a BAS,” you are paying the taxes that your BAS helps calculate.
What is in a Business Activity Statement?
Your BAS includes a breakdown of different taxes and obligations your business needs to report. The exact contents can vary depending on your business structure and registrations, but most BAS forms will include the following:
- Goods and Services Tax (GST): reported on both income and expenses
- PAYG withholding: if you have employees and withhold tax from their wages
- PAYG instalments: if you’re prepaying your own income tax
- Fringe benefits tax (FBT) instalments: if your business provides benefits to employees
- Fuel tax credits: if your business is eligible to claim fuel tax back
- Luxury car tax: if your business sells luxury vehicles above the set threshold
Each section of the BAS is clearly labelled so you know exactly what you’re reporting on and what amounts are due.
Is a BAS the same as a tax return?
Not at all. A BAS is a more regular reporting tool, usually monthly or quarterly, while a tax return is submitted annually. Your tax return focuses on your overall income and deductions for the financial year.
The BAS, on the other hand, deals with ongoing tax obligations like GST, PAYG withholding, and other business taxes. You’ll use your BAS to keep the ATO updated throughout the year, and then your tax return gives them the big picture at year-end.
Both are important, but they serve different purposes and timeframes.
Do sole traders need to do BAS statements?
That depends on whether the sole trader is registered for GST. If your annual turnover is $75,000 or more, GST registration is mandatory, which means you’ll need to lodge a BAS. Some sole traders also need to report PAYG withholding if they have employees, or PAYG instalments if they’re paying income tax in advance.
If you’re under the threshold and not registered for GST, you probably won’t need to do a BAS, but it’s always worth checking with a BAS agent or bookkeeper to be sure. Sole traders often assume BAS is only for bigger businesses, but that’s not always the case.
Need Help with Your BAS?
Whether you’re new to business or just tired of wrestling with the ATO portal every quarter, we’re here to help. BAS doesn’t need to be a headache. With the right support, it can be simple, accurate, and done on time.
Chat to us about your BAS and bookkeeping needs today.
