The Complete Guide to BAS for Australian Businesses

What is a BAS?

A Business Activity Statement (BAS) is a form submitted to the Australian Taxation Office (ATO) to report your tax obligations. If your business is registered for GST, you must lodge a BAS -- either monthly or quarterly depending on your turnover.

Who Needs to Lodge?

Any business registered for GST must lodge a BAS. You are required to register for GST if your annual turnover is $75,000 or more ($150,000 for not-for-profit organisations). Even if your turnover is below this threshold, you can choose to register voluntarily.

What Your BAS Covers

Your BAS can include several components depending on your circumstances:

• GST -- The difference between GST collected on sales and GST paid on purchases.
• PAYG Withholding -- Tax withheld from employee wages and payments to contractors who have not quoted an ABN.
• PAYG Instalments -- Prepayments of your own income tax obligation.
• Fuel Tax Credits -- Credits for fuel used in machinery, heavy vehicles, and certain other business activities.

How to Calculate GST

GST in Australia is a flat 10%. To calculate the GST component of a GST-inclusive price, divide by 11. For example, on a $110 sale, the GST component is $10. You report total sales, GST on sales, total purchases, and GST on purchases. The net amount is what you owe or are owed.

Common BAS Mistakes

The most frequent errors include claiming GST on items that are GST-free (such as basic food, education, and medical services), double-counting transactions that appear in both bank feeds and manual entries, and failing to reconcile before lodging. Always reconcile your bank accounts and review your GST report before submitting.

Lodgement Deadlines

Quarterly BAS is due 28 days after the end of each quarter. Monthly BAS is due on the 21st of the following month. If you use a registered BAS or tax agent, you may be eligible for extended deadlines.

How Kumry Helps

Kumry prepares your GST and BAS figures from the transactions you have recorded. Before you lodge, reconcile the whole period, sort out any uncategorised items, check the tax codes and keep a note of who approved the figures. A signed record in Kumry doesn’t show that your records are complete or your tax is right. Kumry doesn’t lodge your BAS: you or your registered agent lodge it with the ATO.