Running a small business means your to-do list never really ends. Client demands, emails at midnight, cash flow spreadsheets that seem to never end. Then, just when you think you’re on top of things, it’s time to lodge your BAS again.
If your Business Activity Statement makes you groan every quarter, you’re not alone. Here’s what you need to know and how to make it a whole lot easier.
What is a BAS?
A Business Activity Statement (BAS) is a form that GST-registered businesses use to report and pay their taxes to the ATO. It’s how your business tells the ATO what you’ve collected (and paid) on:
- Goods and Services Tax (GST)
- PAYG withholding (if you pay staff or contractors)
- PAYG instalments (if you're prepaying tax on business profits)
- And any other taxes like FBT, fuel tax credits, or wine tax.
It’s customised to your business, based on your size, structure, and industry, but the main goal is to report what you owe (or what you’re owed) so there are no nasty surprises at tax time.
Why does BAS compliance matter?
So, BAS is unfortunately a mandatory thing to do for small businesses, and it involves more than just ticking a box to keep the ATO happy. It’s also about staying on top of your cash flow so you’re prepared to pay your BAS and avoid penalties that hurt more than they need to.
Late lodgements, incorrect claims, and missing records can lead to:
- $330+ in fines every 28 days (for small businesses
- Interest charges on unpaid amounts
- Closer ATO scrutiny
- Loss of GST credits
- Even legal action, like garnishee notices or Director Penalty Notices, if you fall behind on PAYG or super
What do you need to report?
Your BAS is built around your specific tax responsibilities, but here’s what most small businesses typically report:
GST Collected & Credits Claimed
You must report GST collected on your sales, and claim GST credits on your business purchases. The ATO looks at the difference between the two numbers; if you’ve paid more than you collected, you may be eligible for a GST refund.
Watch out for:
- GST-free sales (like exports or some health services)
- Input-taxed supplies (like rent or financial services)
- Discounts, only claim the GST on the discounted price
- Valid tax invoices are needed for claims over $82.50
- Personal use, don’t claim GST on anything not strictly for business
PAYG Withholding
If you have employees (or contractors who ask for tax to be withheld), you need to:
- Withhold income tax from their pay
- Report and remit that amount to the ATO through your BAS.
- Discounts, only claim the GST on the discounted price
- Valid tax invoices are needed for claims over $82.50
- Personal use, don’t claim GST on anything not strictly for business
This helps your team stay on top of their tax and keeps you compliant.
PAYG Instalments
If your business is growing, the ATO might ask you to pre-pay some of your income tax in advance. These PAYG instalments smooth out your tax payments so you’re not hit with a huge bill at year-end.
You can accept the ATO’s suggested instalment amount or calculate your own based on actual income.
When is BAS due?
How often you lodge depends on your GST turnover. Businesses with an annual turnover of more than $20 million are required to lodge their BAS on a monthly basis, with the due date being the 21st of the following month.
For businesses with an annual turnover under $20 million, BAS is generally lodged quarterly, with due dates falling on the 28th day of the month after each financial quarter ends. If your business earns under $75,000 annually, or $150,000 for non-profits, you may be eligible to lodge BAS annually, which is submitted together with your income tax return.
| Turnover | Lodged | Due |
|---|---|---|
Over $20 million | Monthly | 21st of the next month |
Under $20 million | Quarterly (most common) | 28 Oct, 28 Feb, 28 Apr, 28 Jul |
Voluntary GST registration | Annually | 31 Oct or with tax return |
If you’re working with a registered BAS or tax agent (like us at Simplify), you can often get extended deadlines, which is a lifesaver when things get busy.
Here’s a quick look at quarterly BAS due dates for 2025:
Quarterly BAS due dates
| Quarter | Period Covered | BAS Due Date |
|---|---|---|
Q1 | 1 July – 30 September | 28 October |
Q2 | 1 October – 31 December | 28 February |
Q3 | 1 January – 31 March | 28 April |
Q4 | 1 April – 30 June | 28 July |
Common BAS mistakes (and how to avoid them)
Let’s be honest, BAS errors are easy to make when you’re trying to juggle it all by yourself. These are the big ones to avoid:
- Incorrect GST reporting: Mixing up GST-inclusive vs exclusive figures
- Claiming GST you’re not entitled to: On personal expenses or non-GST purchases
- Forgetting PAYG withholding: Not matching payroll records to what you report
- Lodging late: Even if you owe nothing, late lodgement can still be penalised
What if you're behind?
If you’ve missed a BAS (or a few), don’t panic, but don’t ignore it either.
Here’s what to do:
Step 1 – Lodge ASAP
Even if you can’t pay straight away, lodgement stops the penalty clock ticking and shows the ATO you’re trying to fix things.
Step 2 – Set up a payment plan
Call the ATO or your agent. Payment plans are often easier to set up than you think, and they can help avoid enforcement action.
Step 3 – Request a remission
If there was a valid reason for your delay (sickness, tech issues, natural disaster), you can ask for late fees and general interest charges to be waived.
Important: While the ATO retains discretion to remit Failure to Lodge (FTL) penalties and general interest charges, they’ve taken a much tougher stance over the past 12 months. Most remission requests are now declined unless the circumstances are genuinely exceptional and clearly supported by evidence.
You can only request a remission after the overdue lodgement has been submitted and the outstanding BAS liability paid. Each request is reviewed by an ATO officer who was not involved in issuing the original penalty.
Step 4 – Get help
Whether it’s a cloud tool or a trusted BAS agent, getting the right support makes all the difference.
Want BAS to be one less thing to worry about?
You didn’t start a business to get bogged down in taxes and spreadsheets. At Simplify Bookkeeping & BAS, we handle BAS lodgements, payroll, and bookkeeping like it’s second nature.
No more scrambling for receipts.
No more stressing over dates.
Just accurate, on-time reporting and expert support that gives you peace of mind (and your weekends back).
You’re a small business owner, so you’ll still have plenty to stress about. But your BAS can be stress-free (apart from actually paying the money to the ATO, of course).
Contact our small business bookkeepers in Sydney today. We’ll handle your BAS review, preparation, and lodgement, so you’re always up to date with the ATO.
If you want compliance off your shoulders, choose one of our small business bookkeeping packages to suit your budget.
