Running a charity or not-for-profit (NFP) in Australia? Then you’ll have to deal with an activity statement to report and pay your tax obligations. For most organisations, this comes in the form of a business activity statement (BAS), which covers goods and services tax (GST), PAYG instalments, PAYG withholding, and, sometimes, fringe benefits tax (FBT) instalments.
The Australian Taxation Office (ATO) issues a personalised activity statement showing only the obligations that apply to your organisation, and you have to lodge for every reporting period, even if the amount is nil.
What you report
Which taxes?
Depending on your structure and registrations, your BAS/Instalment Activity Statement can include GST, PAYG instalments, PAYG withholding and FBT instalments. Some entities will lodge an IAS if they don’t report GST.
How often?
Your NFP will report monthly, quarterly or annually. Monthly reporters lodge and pay by the 21st day of the following month. Quarterly BAS due dates are Q1 (Jul–Sep) 28 Oct, Q2 (Oct–Dec) 28 Feb, Q3 (Jan–Mar) 28 Apr, and Q4 (Apr–Jun) 28 Jul.
If a due date falls on a weekend or public holiday, you can lodge on the next business day. Tax agents and approved electronic lodgers can take advantage of later lodgment concessions, so always check what applies to you.
Annual GST reporters (eligible organisations on annual cycles) lodge and pay annually – the annual GST return is due with your income tax return, or by 28 February if you don’t need to lodge an income tax return.
Quarterly BAS due dates
| Quarterly | Period | Due Date |
|---|---|---|
| Q1 | Jul-Sep | 28 Oct |
| Q2 | Oct-Dec | Feb 28 |
| Q3 | Jan-Mar | 28 Apr |
| Q4 | Apr-Jun | 28 Jul |
Top tip: Concessional and/or later lodgment dates apply for some electronic lodgers and clients who use tax agents.
Lodging online
Most NFPs lodge activity statements online. You can use Online services for business or your tax agent to lodge activity statements, as well as to revise any previous periods and view your overall history. The ATO also has handy tips for preparing and lodging BAS, and breaks down your payment options if you can’t pay tax in full on the due date.
Professional support matters, especially if your activities change or you register for new taxes. A registered tax agent can help you get prepared and manage communications on behalf of your organisation.
What to have ready for each period
Precise financial statements will make BAS processing much faster and error-free. So before you submit your paperwork, make sure you:
- Reconcile bank accounts and GST so the figures are true to your financial position.
- Check PAYG instalments and withholding are correct, including salary/payroll changes for employees and volunteers receiving honoraria.
- Look into whether you’re on cash or accrual for GST, and that you’ve included all services and transactions during the period.
If you find a mistake after lodgment, you can revise your BAS online. If you can’t figure that out in time, speak with the ATO as soon as possible to discuss your needs, including things like payment plans or interest options.
Are BAS and ACNC annual reporting different?
Yes, BAS and ACNC annual reporting are different. Your BAS/IAS obligations are tax requirements set out by the ATO. Separately, registered charities have to meet annual reporting requirements to the ACNC. This involves lodging an Annual Information Statement each year (and, for medium and large charities, an annual financial report that must be reviewed or audited).
Size is based on revenue, so small charities can usually use cash accounting, whereas medium and large entities must use accrual accounting. Some charities have streamlined arrangements with other regulators or limited exemptions.
Example situations for different not-for-profits
- You’re GST-registered and run fundraising events: Report GST on taxable sales and claim credits on related purchases in the BAS for the reporting period in which they apply.
- You withhold PAYG from staff: Report all amounts withheld in your BAS/IAS and make payment by the due date (monthly or quarterly, depending on your withholding status).
- You pay FBT: If your prior year FBT was above the ATO threshold, you’ll pay FBT instalments with your BAS/IAS and reconcile on your annual FBT return.
BAS tips for NFP entities
Getting activity statements right mostly comes down to creating good habits and sticking to them. A good rule of thumb is to use accounting software like Reckon that can map everything cleanly to your BAS labels so that what you submit matches your ledger. Also, reconcile frequently so your figures match the organisation’s actual financial position.
Next, choose a reporting cycle that fits your cash flow – report monthly if you need more control, or quarterly if that’s just more practical – but never skip a period. Even if there is no activity, you still need to lodge a statement. If you spot an error, revise it online ASAP and discuss your payment options with the ATO if you can’t pay in full by the due date.
Finally, remember that BAS is separate from ACNC annual reporting, and both matter. Wherever needed, use your tax agent to handle all the paperwork so your not-for-profit can spend more time investing resources into what really matters.
