What is BAS & how to lodge it online?
Everything you need to know about BAS and how Reckon One can help.
What is BAS?
Aย Business Activity Statement (BAS) is a form that businesses must submit to the Australian Taxation Office (ATO) in order to report and pay their tax liabilities. A large part of BAS is related to GST.
Your BAS can also include PAYG withholding and instalments, wine equalisation tax, fuel tax credit and fringe benefit tax if these apply to your business.
How does BAS relate to GST?
When you complete a BAS form you are essentially reporting the goods and services tax amount youโve collected on your sales minus any that youโve paid on your purchases, with the difference being your refund or what you owe to the ATO.
For example:
- Your business charges $50 for your goods or services so your customer will be charged $55. The additional $5 is the GST that needs to be paid to the ATO.
- If your business buys supplies, you will be charged 10% in GST, which you can claim back from the ATO as a credit.
Make sure to keep an accurate record of your business activity (receipts and tax invoices) to calculate your GST correctly.
Who has to lodge a BAS statement online?
If your small business is registered for GST you need to lodge a Business Activity Statement.
You must register for GST if:
- Your business has a GST turnover (gross income minus GST) of $75,000 or more per financial year
- Your non-profit organisation has a GST turnover of $150,000 or more per financial year
- You are a taxi driver and ride-sharing driver no matter what your turnover is
BAS lodgement due dates
If your business has an annual turnover of $20 million or less, you can choose to lodge BAS reports monthly or quarterly. Businesses with turnover above this threshold must generally report monthly.
| Monthly | Lodgement Date |
|---|---|
| January – December | 21st of the following month |
| Quarterly | Lodgement date |
| July, August, and September | 28 October |
| October, November, and December | 28 February |
| January, February, and March | 28 April |
| April, May, and June | 28 July |
Choosing a method to complete your BAS Statement
There are two methods that are offered by the ATO to work out your GST:
- Calculation worksheet method
- Accounts method
The method you choose to complete and submit your BAS will depend on your business size, complexity, accounting skills, the time you can allocate to BAS preparation, and personal preferences.
Identifying your accounting basis to complete a BAS Statement
Accrual or cash basis? Thereโs a few accounting basis decisions youโll need to make to undertake your BAS and general accounting. The way you choose to do your accounting will also come into play when you submit your regular BAS.
GST calculation worksheet & BAS Statement Example
BAS statement example
Business Activity Worksheet
This worksheet helps you calculate GST amounts for your BAS form.
How to do a BAS statement
There are three main steps to completing your BAS:
1. Prepare your information
Reconcile your accounts to ensure that all your information is accurate and up-to-date. This involves collating your business transactions such as receipts, invoices and ensuring they match your accounting information and there are no discrepancies.
2. Calculate your totals and enter figures
Now that your information is accurate itโs time to calculate your totals. You can do this via a report in your accounting software or adding up all your numbers if you use a manual method (see GST calculation worksheet). Once you have your totals, transfer them to your BAS form.
3. Lodge and update
There are three main ways to lodge your BAS:
Mail a hard copy of your BAS form to the ATO. Lodge BAS statement online through the ATOโs Business Portal. You can also engage a BAS or Tax agent lodge for you.
Whichever option you choose make sure you save a copy of your BAS statement and update your accounting information with your figures.
Reckon makes lodging your BAS easy
Run the Reckon One โActivity Statement (BAS)โ report that will help you generate the exact figures to enter onto your business activity statement form. Save and mark as lodged to help you stay organised. All Reckon accounting products are Simpler BAS enabled including Reckon One.
Download your free Business Activity Statements guide
BAS Guide
This guide will lead you through everything you need to know about BAS, how it works, what it includes, how to complete it, and when you should submit.
Frequently asked questions
What happens if you lodge BAS late?
If you fail to lodge your BAS on time, you may incur late penalties and interest charges from the ATO. In extreme cases, serial offenders may face legal action.
To avoid missing a BAS due date, businesses should:
- Set reminders for due dates (monthly or quarterly) to avoid missing a lodgement.
- Maintain organised accounting records of invoices and receipts
- Use accounting software to track GST
- Work with a registered BAS agent or tax agent if additional support is needed
Do sole traders need to lodge BAS?
Yes, a sole trader must lodge a BAS if they are registered for GST.
Many sole traders choose to register for GST once their annual turnover approaches the threshold, while others may voluntarily register earlier to claim GST credits on business purchases.
A sole trader may also need to report:
- PAYG instalments
- Fuel tax credits
- Other business tax obligations depend on the nature of their services and industry
Should you lodge monthly or quarterly BAS?
Businesses that earn $20 million or more (above the threshold) must report monthly. Businesses below the threshold default to quarterly but can opt in to lodge monthly instead โ it entirely depends on preference.
Some businesses prefer a monthly BAS to better manage monthly GST reporting and spread out tax payments across the financial year to help with cash flow. Other businesses choose quarterly reporting to reduce admin time.
Businesses that earn below the GST registration threshold ($75,000) but have voluntarily registered for GST may also be eligible to lodge annually by the 31st October.
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