What is BAS & How to Lodge it in Australia?
Starting a business as a sole trader or struggling to stay on top of your taxes? Lodge your BAS on time first. It can be confusing and stressful, and mistakes can cost you penalties. Here, you will learn how to simplify your BAS lodgment online or through other methods and keep your business compliant without the headache, and calculate your BAS with our easy and instant GST BAS Estimator.
What is BAS?
The Business Activity Statement (BAS) is a form from the ATO that helps you report your business taxes. On it, you’ll include the GST you’ve collected from sales, GST credits from purchases, and other obligations like PAYG withholding or instalments. Depending on your turnover, you lodge BAS monthly, quarterly, or yearly. Lodging is easy; you can do it online through the ATO BAS portal, myGov, or get a BAS agent to do it for you.
Is BAS related to GST?
Many people are still confused about BAS and GST returns, and often mix them up, but they’re not the same thing. A GST return only covers GST, which is a sales tax on goods and services, while BAS is more detailed. It captures GST, PAYG, and sometimes even fringe benefits tax (FBT), providing the ATO with a complete snapshot of your business.
Calcuate GST With our GST Calculator.
For GST Registration visit our page GST Registration in Australia.
Who needs to lodge BAS?
If your business makes $75,000 or more in turnover ($150,000 for non-profits), it’s required to lodge BAS. If you withhold PAYG from wages, you also need to lodge. Smaller businesses under the threshold can still register voluntarily, which can be handy if you want to claim GST credits on expenses.
GST Reporting Cycles Lodgment & Deadlines
Staying on top of your BAS lodgement dates is crucial to avoid late fees and interest. Here’s a clear breakdown of when your monthly, quarterly, and annual BAS is due according to the ATO.
Frequency | Who Lodges? | When It’s Due | Example |
Monthly BAS | Big businesses with turnover $20M+ (or anyone who chooses monthly) | 21st of the following month | July BAS → 21 Aug |
Quarterly BAS | Most small & medium businesses (< $20M turnover) | 28 days after each quarter (Dec quarter is special → due 28 Feb) | Q1 (Jul–Sep) → 28 OctQ2 (Oct–Dec) → 28 FebQ3 (Jan–Mar) → 28 AprQ4 (Apr–Jun) → 28 Jul |
Annual BAS (GST return) | Small businesses registered voluntarily (≤ $75k turnover, ≤ $150k for non-profits) | With your tax return → usually 31 Oct, or 28 Feb if no tax return is needed | 2024–25 BAS → 31 Oct 2025 |
How & Where to Lodge Your BAS?
Lodging your Business Activity Statement (BAS) doesn’t have to be complicated. The Australian Taxation Office (ATO) has made it easier with several secure, mostly paperless options. Here’s a breakdown:
ATO Online Services for Business
If you run a company or partnership, you can lodge BAS online directly through the ATO Online Services for Business. You’ll need a myGovID to log in. This portal helps you to prepare, lodge, and track your BAS all in one place.
myGov (for sole traders & small businesses)
Sole traders can use their myGov account linked to the ATO. Once connected, you can view your BAS, fill it out, and lodge online. It’s simple and works well if you manage your own tax.
Accounting Software (SBR-enabled)
If you are using accounting software like Xero, MYOB, or QuickBooks, you can lodge BAS directly through the system using Standard Business Reporting (SBR). This saves time because the software automatically calculates GST and PAYG details and sends them directly to the ATO.
Through a Registered BAS or Tax Agent
Not confident doing it yourself? A registered BAS or tax agent can lodge on your behalf. Agents often get extended deadlines, which can be handy if you’re running behind.
Paper BAS Lodgement (rare)
Paper forms are mostly being phased out, but in some cases, the ATO may still allow them. However, online is faster, safer, and gives you instant confirmation.
Tip: Lodging BAS online not only saves time but also helps you keep better records and reduces errors.
Paying GST & Settling Your BAS with the ATO
How to Pay GST Through BAS?
The ATO provides multiple secure payment options to pay GST:
- BPAY You can pay directly via internet banking using the ATO’s biller code and your BAS payment reference number.
- Credit or Debit Card You can use the Government EasyPay system with Visa, MasterCard, or Amex (a small card fee applies).
- Direct Debit or Bank Transfer. You can set up a direct debit in ATO Online Services or transfer funds using ATO’s bank details, which include your PRN.
What Happens if BAS Is Not Lodged or Paid on Time
If you can’t pay the full amount straight away, the ATO provides flexible options. You can apply for a payment plan online (via myGov or Online Services for Business) or through your registered BAS/tax agent. This allows you to pay in instalments and stay compliant while protecting your business cash flow.
Options if You Can’t Pay BAS in Full
If you can’t pay the full amount straight away, the ATO provides flexible options. You have to follow a few steps. You can apply for a payment plan online (via myGov or Online Services for Business) or through your registered BAS/tax agent. This allows you to pay in instalments and stay compliant while protecting your business cash flow.
Verified source: ATO – How to pay your BAS
BAS Calculation & Reporting
Filling out your BAS form might sound tricky, but it really comes down to reporting two main things: the GST you’ve collected on sales and the GST credits you can claim from business purchases. The difference between these amounts decides whether you pay the ATO or get a refund. This is the core of BAS reporting and what makes it different from a simple GST return. Check our BAS Estimator for GST collected and paid, it is very helpful and can instantly calculate the estimated BAS.
How to Calculate BAS (GST Collected vs GST Credits)
Start by adding up all the GST you’ve charged customers (GST on sales). Next, total the GST you’ve paid on eligible business expenses (GST credits). Subtract the credits from the collected GST; if the number is positive, you owe the ATO; if negative, you may be entitled to a refund.
Step-by-Step Example Calculation
Let’s say your business collected $5,000 GST on sales during the quarter. At the same time, you spent money on supplies and services that included $2,000 GST credits. Subtracting credits from collected GST ($5,000 – $2,000) means you’ll need to pay $3,000 GST to the ATO when lodging your BAS statement.
What Goes into BAS (Beyond GST)
Your BAS isn’t just about GST. Depending on your business, it can also include:
- PAYG withholding – tax withheld from employee wages.
- PAYG instalments – prepayments towards your expected income tax.
- Other taxes and obligations – if your business is registered for them.
This means the BAS form acts as a single report for multiple obligations, making it a key part of how the ATO tracks your business tax compliance. Keeping accurate records of invoices, receipts, and digital files ensures accuracy and makes completing the BAS ATO online portal or tax software much easier.
BAS ATO Portal & Online Tools
Lodging your BAS is much easier today thanks to the ATO’s online tools. Instead of worrying about paperwork, you can manage everything digitally through the ATO BAS Portal, myGov, or with accounting software.
How to Access the BAS Portal via ATO
You can log in to the ATO Business Portal using your myGovID. Once inside, you’ll find your BAS form ready to complete. From there, you can enter figures for GST, PAYG, and any other obligations, then lodge them directly online. The portal also lets you check due dates, past statements, and payment options.
BAS Lodgement Portal vs Tax Software
The ATO portal is simple and free, but many businesses prefer SBR-enabled accounting software like Xero, MYOB, or QuickBooks. Why? Because the software automatically pulls your sales and expense data into the BAS form, saving time and reducing errors. If you’re not confident, you can also lodge BAS through a registered BAS or tax agent.
Record-Keeping Requirements
No matter how you lodge, the ATO requires accurate records. This includes invoices, receipts, payroll reports, and digital records of business transactions. Storing them electronically makes life easier at BAS lodgment time and helps if the ATO asks for evidence later. Keeping tidy records ensures your BAS lodgement is quick, stress-free, and accurate.
Tips to Lodge BAS Accurately
Lodging your BAS can feel stressful, but a few smart habits will make the process smoother and stress-free. The key is preparation, accuracy, and staying on top of due dates.
Avoiding Common Mistakes
Many businesses encounter issues such as misreporting GST, confusing BAS periods, or failing to claim eligible credits. The ATO recommends double-checking all tax invoices, reconciling accounts before you lodge, and ensuring figures match your bookkeeping records.
Setting Up Reminders for Deadlines
Missing a BAS deadline can lead to penalties and interest charges. To avoid this, set up calendar reminders, ATO alerts, or accounting software notifications. The ATO also allows you to check all upcoming due dates directly through the ATO Business Portal.
DIY BAS Lodgement vs Using an Agent
If your business finances are simple, you can lodge BAS yourself via myGov or the ATO portal. However, if your business has complex transactions or payroll, working with a registered BAS or tax agent can save time and ensure accuracy. Agents also get extended BAS lodgement deadlines in many cases, giving you more breathing room.
Frequently Asked Questions
Final Words
Lodging and paying your Business Activity Statement (BAS) is one of the most important parts of staying compliant with the ATO. By understanding how BAS works, from calculating GST collected vs credits, to knowing due dates, payment options, and using tools like the ATO portal or Xero, you can avoid penalties and keep your business finances on track.
You can lodge BAS yourself online, or registered BAS agents or tax professionals can help ensure accuracy and save you stress. Remember to keep clear records, set up reminders for deadlines, and make use of ATO support like payment plans if needed.
In short: stay organised, use the right tools, and seek expert help when required. Doing BAS correctly not only keeps you compliant, but it also gives you a clearer picture of your business’s cash flow and financial health.
For the latest rules and official guidance, always check the Australian Taxation Office (ATO) website.