In this article we cover everything you need to know about BAS – due dates, how it works, lodging your BAS, how to save on BAS payments, what happens when mistakes are made, tips and more.
Need help with BAS?
If you’re looking for a BAS agent or accountant to advise you on BAS due dates, handle the lodgement process, or fix errors, reach out to us. Contact us and let us know how we can help.
What is a BAS?
BAS stands for Business Activity Statement. It is a form that needs to be submitted to the ATO if your business is registered for GST.
A business activity statement reports on your:
- GST (Goods and service tax)
- PAYG instalments (Pay as you go)
- PAYG withholding tax
- Other taxes your business may be required to pay (like FBT).
Your BAS statement lets the ATO know how much tax you need to pay or be refunded.
How to lodge a BAS
BAS statements can be lodged online, through a registered tax agent or by mail. Make sure you’re aware of the relevant BAS due dates for your business so that you lodge on time.
Lodging online with the ATO is secure and can be done either via their online services for business site, your MyGov portal if you’re a sole trader, or standard business reporting enabled software.
BAS can be paid via debit or credit card or BPAY.
It’s a good idea to lodge your BAS even if you’re not in a position to pay it, just to show the ATO that you are making steps to comply and not evading or ignoring your tax obligations. Late payments can be penalised. When lodging online, you may be eligible for an extra two weeks breathing room.
When is BAS due?
BAS payment due dates depend on your reporting cycle, which is determined by your business’ annual GST turnover. Smaller businesses have less activity to report on so their payment dates are either quarterly or annual.
- For a business that has an annual GST turnover of less than $20 million, your reporting cycle will be quarterly, unless you’re informed otherwise by the ATO.
- For a business with an annual GST turnover of $20 million or more your BAS will be due monthly.
- If you’ve decided to register voluntarily for GST and your GST turnover is under $75,000 you’ll report annually. (This limit is set at $150,000 for not-for-profit organisations).
Quarterly BAS due dates
For businesses whose GST turnover is less than $20 million your next BAS due date will be the 28th day of the month following the end of the financial quarter. The exception to this is at the end of the second quarter (ending in December) when the reporting deadline is pushed to February.
BAS Quarters
These are the four quarterly BAS due dates:
- Quarter 1: July, August and September. Quarter due date = 28 October
- Quarter 2: October, November and December. Quarter due date = 28 February
- Quarter 3: January, February and March. Quarter due date = 28 April
- Quarter 4: April, May and June. Quarter due date = 28 July.
Monthly BAS due dates
Larger businesses in Australia lodge a monthly business activity statement as they tend to have more to report. Lodging BAS more frequently enables them to manage cash flow better without the surprise of a large tax bill every 3 months.
If your annual GST turnover is over $20 million, your next BAS due date will be the 21st day of the following month. For example your June BAS report will be due on the 21st of July.
Annual BAS due dates
If your business falls into this category your due date for annual GST is 31 October.
If you aren’t required to lodge a tax return then the annual BAS due date is 28 February following the annual tax period.
BAS due dates 2023 / 2024
To make things easier for you we’ve broken down the important BAS due dates that you need to remember this year. If you don’t have a tax accountant doing your BAS payments for you, then take these BAS periods and set a reminder in your calendar.
BAS Quarters 2023 / 2024
These are the quarterly BAS due dates for 2023 / 2024:
- Q1: July to September 2023 quarter is due on the 28th of October 2023.
Note For BAS agents and tax agents the due date is the 25th of November. - Q2: October to December 2023 quarter is due on the 28th of February 2024.
- Q3: January to March 2024 quarter is due on the 28th April 2024.
Note For BAS agents and tax agents the due date is the 26th of May 2024. - Q4: April to June 2024 quarter is due on the 28th of July 2024.
Note For BAS agents and tax agents the due date is the 25th of August 2024.
Monthly BAS 2023/ 2024
These are the monthly BAS due dates for 2023 / 2024:
- BAS due date July 2023: 21 August
- BAS due date August 2023: 21 September
- BAS due date September 2023: 21 October
- BAS due date October 2023: 21 November
- BAS due date November 2023: 21 December
- BAS due date December 2023: 21 January
- BAS due date January 2024: 21 February
- BAS due date February 2024: 21 March
- BAS due date March 2024: 21 April
- BAS due date April 2024: 21 May
- BAS due date May 2024: 21 June
- BAS due date June 2024: 21 July
BAS agents
Make sure your BAS statement is lodged on time and that it correctly contains all the information you need to provide the ATO with regarding your GST, PAYG and other activities. This is where the services of a BAS agent or a tax agent are beneficial.
creditte chartered accountants & advisors is a registered tax agent in Brisbane that handles the entire BAS lodgement process – minimising errors and avoiding penalties for our clients. Our monthly bookkeeping services will keep your business activities in shape, helping you to stay cash flow positive and meet your tax obligations.
If you lodge quarterly, we can generally get you a four week extension on your BAS lodgement and payment dates.
What happens if BAS is late?
It’s important to lodge BAS on time and with the correct information in order to accurately calculate your tax. Late BAS lodgement can incur a penalty from the ATO so we recommend lodging your BAS when it’s due, even if you’re unable to pay at that moment.
BAS payment plan
The ATO is understanding, especially given the devastation that the COVID-19 pandemic had on some businesses, so if you’re unable to pay BAS contact the ATO or speak to a BAS or tax agent who can help develop a payment plan with you.
The ATO provides a handy BAS payment plan calculator here.
What if I made a mistake on my BAS?
There’s a difference between fixing a mistake on your BAS or making an adjustment.
Mistakes are typically admin errors such as entering the incorrect amount or mistakenly excluding GST from a sale. Adjustments tend to relate to reporting an item that was correct at the time but later changed, such as a goods being returned or a cancelled sale.
You can fix mistakes on your BAS when you lodge at the next due date cycle, or speak to your tax agent to do it for you.
Working with local bookkeeping services in Brisbane can help you avoid BAS errors and keep your business compliant with the ATO.
How to reduce BAS payments?
Clients have often paid too much due to a few common BAS mistakes.
Common mistake #1 – not claiming all your GST credits
Any GST you pay on goods and services for your business can be claimed as a GST credit on your BAS. A GST credit reduces the amount of GST your business needs to pay on the sales of your goods or services
Common mistake #2 – not paying GST on a cash basis
If you are a small business with an aggregated turnover (your business’s turnover and the turnover of closely associated entities) of less than $10 million, there are two options for paying GST – cash and non-cash (accrual).
If you pay GST on a cash basis, you pay GST in the BAS period when you receive payment from your customers.
If you pay GST on a non-cash (accruals) basis, you pay GST in the BAS period when you invoice your customers. This may not necessarily be the same BAS period as you receive payment from your customers, especially if you have 30, 60 or 90-day payment terms.
Paying GST on a cash basis can help with your cash flow because you’re paying the GST when you physically get paid rather than when you issue an invoice!
Common mistake #3 – incorrectly including GST on GST-free sales
Some products and services in Australia are GST-exempt. Mostly these relate to exports, food and some medical/health services.
If your business sells any GST-exempt products or services, you do not need to pay GST on those sales.
BAS tips
Here’s a few tips to help you with your BAS:
- Develop a system to keep good records in your business – invoices, expenses, wages, stock takes, vehicle logbooks etc. This will make it much simpler to complete your BAS at the due date.
- Check that GST is included on your sales invoices and only claim GST credits if you have tax invoices for purchases of $82.50 (incl. GST) or more.
- Use accounting software, like Xero, to minimise manual errors. These solutions can automatically calculate GST for you and help you keep better records.
- Use the right payment reference number (PRN), also referred to as an EFT code, when making BAS payments to the ATO.
- You can avoid delays on your BAS refund by ensuring that your lodgements are up to date and your banking details are correct.
FAQs
How long does a BAS refund take?
BAS refunds usually take around seven to fourteen working days to be processed. If you have a debt with the ATO, your bank details are not correct or your lodgements are not up to date, your refund may be affected.
Do sole traders have to pay BAS?
Sole traders, like all types of businesses, only have to pay BAS is their GST turnover is higher than $75,000 per annum.
What is BAS excluded?
Goods or services that are BAS Excluded are outside of Australia’s Goods and Services Tax (GST) legislation, which means they are not subject to 10% GST.
The more common transactions are:
- Owner drawings
- Wages and super
- Loan repayments
- Dividends
- Charity donations
- Depreciation
BAS excluded vs GST free?
Items that are BAS excluded are GST free. These are items where there is no GST applied such as wages and super, bonuses, loan repayments etc. You should not include BAS excluded items on your business activity statement.
Difference between BAS and tax return?
Your business activity statement (BAS) calculates the difference between the amount of GST you’ve collected during the BAS period between the GST you’ve paid to work out how much you need to pay or be refunded by the government. A tax return calculates the tax you need to pay on your business profits over the financial year.
What is the GST turnover threshold for simpler BAS?
Simpler BAS is the default reporting method for small businesses with a GST turnover of less than $10 million. This means that you don’t need to complete a GST calculation worksheet and if you lodge a paper activity statement or annual GST return, the sections where information is not needed can be left blank.
What dates are BAS due?
BAS due dates depends on your business GST turnover:
- GST turnover of less than $20 million: BAS due date quarterly, on the 28th day of the month following the end of the financial quarter.
- GST turnover of over $20 million: BAS due date is the 21st day of the following month.
- GST turnover of under $75,000 that has voluntarily registered for GST: BAS due date is 31 October.
What is the BAS dates 2022 / 2023?
In case you missed it, here are the monthly and quarterly BAS due dates 2022/ 2023.
Quarterly BAS due dates 2022 / 2023:
- Q1: July to September 2022 quarter was due on the 28th of October 2022.
- Q2: October to December 2022 quarter was due on the 28th of February 2023.
- Q3: January to March 2023 quarter was due on the 28th April 2023.
- Q4: April to June 2023 quarter was due on the 28th of July 2023.
Note For BAS agents and tax agents the due date is the 25th of August 2023.
Monthly BAS 2022 / 2023:
- BAS due date July 2022: 21 August
- BAS due date August 2022: 21 September
- BAS due date September 2022: 21 October
- BAS due date October 2022: 21 November
- BAS due date November 2022: 21 December
- BAS due date December 2022: 21 January
- BAS due date January 2023: 21 February
- BAS due date February 2023: 21 March
- BAS due date March 2023: 21 April
- BAS due date April 2023: 21 May
- BAS due date May 2023: 21 June
- BAS due date June 2023: 21 July
What is the BAS Q2 2022 due date?
The BAS Q2 2022 due date was 28th of February 2023 for the October to December 2022 quarter. If you missed the due date and are behind on lodgements, speak to us today and we can get you up to speed.
