BAS
The form GST-registered businesses lodge to report GST, PAYG withholding and instalments.
A Business Activity Statement reports and pays several obligations at once: GST collected and paid, PAYG withholding from employee wages, PAYG instalments towards your own income tax, and sometimes fringe benefits tax instalments.
Most small businesses lodge quarterly, though larger ones lodge monthly and some very small ones annually. Due dates fall roughly four weeks after quarter end, extended if you lodge through a registered agent.
The statement is a net calculation. GST credits on purchases reduce what you owe, and in a quarter with major capital purchases the BAS can produce a refund rather than a payment.
Accurate coding through the year is what makes the BAS straightforward. Reconciling bank feeds monthly and correctly classifying GST-free and input-taxed items avoids the scramble of reconstructing a quarter's transactions the week before the deadline.
A quarter with a big purchase
You collect $6,000 of GST but buy $55,000 of equipment carrying $5,000 of GST credits. The BAS nets to $1,000 payable instead of $6,000.
The bit people get wrong
Lodging late attracts failure to lodge penalties even when nothing is owed. Lodging on time and arranging a payment plan is always better than not lodging at all.
Common questions
When is my BAS due?
Quarterly lodgers generally have until 28 days after quarter end, with the December quarter extended to late February. Using a registered agent adds further time.
What if I cannot pay?
Lodge anyway and contact the ATO about a payment plan. Penalties for not lodging are separate from and additional to interest on unpaid amounts.
Can I lodge it myself?
Yes, through the ATO business portal or accounting software. Many businesses use an agent for the extended deadlines and the review of classifications.