Business Activity Statement (BAS)
A form lodged with the ATO to report and pay GST, PAYG withholding, PAYG instalments, and other business tax obligations.
A Business Activity Statement (BAS) is a form that GST-registered businesses and other entities use to report and pay several tax obligations to the ATO, including GST collected and paid, PAYG withholding on employee wages, PAYG instalments on business/investment income, wine equalisation tax (WET), luxury car tax (LCT), and fringe benefits tax (FBT) instalments.
Most small businesses lodge quarterly (due 28 days after each quarter end: 28 Oct, 28 Feb, 28 Apr, 28 Jul). Businesses with annual turnover of $20 million or more must lodge monthly (due on the 21st of the following month). The ATO offers an electronic lodgement concession that extends the due date by 4 weeks for some quarters.
GST reporting on the BAS can be done using either the cash (receipts) method or the accruals method. The cash method reports GST when payment is received or made, while the accruals method reports GST when invoices are issued or received, regardless of payment. Businesses with turnover under $10 million can choose either method. The cash method is simpler and better for cash flow management for most small businesses.
Related Terms
Goods and Services Tax (GST)
A 10% broad-based consumption tax applied to most goods, services, and other items sold or consumed in Australia.
PAYG Withholding
The system where employers withhold income tax from employees' wages and remit it to the ATO throughout the year.
PAYG Instalments
Regular prepayments of tax on business or investment income that doesn't have tax withheld at source.
Input Tax Credit
A credit for GST included in the price of goods and services purchased for business use, offsetting GST collected on sales.
Activity Statement
A form used by businesses to report and pay GST, PAYG withholding, PAYG instalments, and other tax obligations.