BAS: what is it and how to lodge it
As a GST-registered business you’ll need to let the government know how much you’ve collected and how much you’ve paid. You do this by completing a business activity statement (BAS).
What is a BAS?
A BAS is a form that you fill out between one and twelve times a year, depending on your business size. The ATO uses the information on your BAS to work out your GST refund or bill. It’s also used for business income tax (if you’re in the pay-as-you-go system), employee income tax, fringe benefits tax, luxury car tax, wine equalisation tax, and fuel tax credits.
Information you will need
You’ll need a record of how much GST you collected on sales, and how much was paid on purchases. You won’t need to submit tax invoices when you lodge your BAS, but you will need to have them on hand. The ATO may ask to see them later.
Because your BAS may also be used for other tax reasons, you will probably need to provide extra information about your business, its income, and any employees. Learn more on the ATO page about business activity statements.
How to lodge a BAS
You can lodge your BAS online:
What are BAS due dates?
How often you complete a BAS – and when you must submit it – depends on how much business you’re doing. And that’s measured by your annual turnover.
More than $20 million annual turnover
Deadlines: You must submit a BAS within 21 days of the month closing.
Less than $20 million annual turnover
- Quarter 1 (July-September) BAS is due on 28 October.
- Quarter 2 (October-December) is due on 28 February.
- Quarter 3 (January-March) is due on 28 April.
- Quarter 4 (April-June) is due on 28 July.
If your turnover is less than $10 million, you may be able to lodge annually – but you’re still required to pay a quarterly instalment of the GST you owe.
Less than $75,000 annual turnover (or $150,000 for non-profits)
Deadline: Submit with income tax return.
If you miss you BAS due date
You may be penalised by the ATO if you blow your BAS deadline without a good reason. Here’s how they calculate the size of the fine.
If your BAS says that you owe GST, then you are generally required to make that payment on the same day. You can pay online, by mail, or in person at Australia Post.
If you can’t afford to pay the GST you owe, you may still be able to avoid a fine by lodging your BAS on time, then working out a payment plan with the ATO.
Getting a GST refund
If you paid more GST than you collected, the ATO will owe you a refund. It will be paid directly into your nominated bank account.
Chapter 7: Where to next? Tools and guides for your business
Find more guides to help you understand GST and BAS, along with handy tools to make it easier. Xero has everything you need to conquer GST and BAS.Read next chapter
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