{"id":14176,"date":"2026-02-11T12:12:58","date_gmt":"2026-02-11T06:42:58","guid":{"rendered":"https:\/\/befreeltd.com\/au\/?p=14176"},"modified":"2026-02-11T13:56:57","modified_gmt":"2026-02-11T08:26:57","slug":"business-activity-statements-bas-ato-compliance-smes","status":"publish","type":"post","link":"https:\/\/befreeltd.com\/au\/resources\/blogs\/business-activity-statements-bas-ato-compliance-smes\/","title":{"rendered":"Business Activity Statements (BAS) Explained: How SMEs Can Stay ATO-Compliant"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"14176\" class=\"elementor elementor-14176\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-684f1151 e-flex e-con-boxed e-con e-parent\" data-id=\"684f1151\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7f80aa8c elementor-widget elementor-widget-text-editor\" data-id=\"7f80aa8c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>For many Australian small businesses, BAS lodgement is one of those tasks that feels simple in theory, but quickly becomes stressful in practice. You\u2019re not just reporting numbers. You\u2019re reporting them in the format the Australian Taxation Office (ATO) expects, using the right GST codes, and meeting strict due dates that come with real penalties if missed.<\/p><p>A BAS activity statement (also called a Business Activity Statement) is how SMEs report key tax obligations such as GST, PAYG withholding, PAYG instalments, and sometimes FBT instalments. It\u2019s a routine requirement, but it\u2019s also one of the easiest places for small mistakes to turn into ATO queries, payment shocks, or compliance headaches.<\/p><p>The good news? BAS doesn\u2019t have to be complicated. Once you understand what the BAS is actually asking for and how to set up your accounting system correctly, staying compliant becomes far more manageable.<\/p><p>In this guide, we break down BAS reporting in plain English, explain what confuses SMEs most, and show how to stay ATO-ready with confidence.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c1bab50 elementor-toc--minimized-on-tablet elementor-widget elementor-widget-table-of-contents\" data-id=\"c1bab50\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;headings_by_tags&quot;:[&quot;h2&quot;],&quot;exclude_headings_by_selector&quot;:[],&quot;no_headings_message&quot;:&quot;No headings were found on this page.&quot;,&quot;marker_view&quot;:&quot;numbers&quot;,&quot;minimize_box&quot;:&quot;yes&quot;,&quot;minimized_on&quot;:&quot;tablet&quot;,&quot;hierarchical_view&quot;:&quot;yes&quot;,&quot;min_height&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;min_height_laptop&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;min_height_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;min_height_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]}}\" data-widget_type=\"table-of-contents.default\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-toc__header\">\n\t\t\t\t\t\t<h2 class=\"elementor-toc__header-title\">\n\t\t\t\tTable of Contents\t\t\t<\/h2>\n\t\t\t\t\t\t\t\t\t\t<div class=\"elementor-toc__toggle-button elementor-toc__toggle-button--expand\" role=\"button\" tabindex=\"0\" aria-controls=\"elementor-toc__c1bab50\" aria-expanded=\"true\" aria-label=\"Open table of contents\"><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/div>\n\t\t\t\t<div class=\"elementor-toc__toggle-button elementor-toc__toggle-button--collapse\" role=\"button\" tabindex=\"0\" aria-controls=\"elementor-toc__c1bab50\" aria-expanded=\"true\" aria-label=\"Close table of contents\"><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<div id=\"elementor-toc__c1bab50\" class=\"elementor-toc__body\">\n\t\t\t<div class=\"elementor-toc__spinner-container\">\n\t\t\t\t<svg class=\"elementor-toc__spinner eicon-animation-spin e-font-icon-svg e-eicon-loading\" aria-hidden=\"true\" viewBox=\"0 0 1000 1000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M500 975V858C696 858 858 696 858 500S696 142 500 142 142 304 142 500H25C25 237 238 25 500 25S975 237 975 500 763 975 500 975Z\"><\/path><\/svg>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-18f35e92 elementor-widget elementor-widget-heading\" data-id=\"18f35e92\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What Is a Business Activity Statement (BAS)?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2e1fd607 elementor-widget elementor-widget-text-editor\" data-id=\"2e1fd607\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>A Business Activity Statement (BAS) is a form submitted to the Australian Taxation Office (ATO) that reports your business\u2019s tax obligations for a specific period (monthly, quarterly, or annually).<\/p><p>Most Australian SMEs think BAS is \u201cjust GST reporting,\u201d but it\u2019s broader than that. Your BAS may include:<\/p><ul><li>GST collected and paid (based on your sales and purchases)<\/li><li>PAYG withholding (tax withheld from employee wages)<\/li><li>PAYG instalments (prepayments toward your annual income tax)<\/li><li>Fringe Benefits Tax (FBT) instalments, if applicable<\/li><li>Other ATO reporting obligations depending on your business type<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-61015388 elementor-widget elementor-widget-text-editor\" data-id=\"61015388\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>In simple terms, BAS is how the ATO checks whether your business collects, withholds, and pays the right taxes throughout the year.<\/p><p>Your BAS lodgement frequency depends on your business size, GST turnover, and ATO registration requirements. Many SMEs lodge quarterly, while some businesses (especially growing businesses or those with higher turnover) may lodge monthly.<\/p><p>Whether you\u2019re managing BAS internally or relying on external support, accuracy matters because BAS errors can trigger ATO follow-ups, payment surprises, and compliance risk.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6b65fd91 elementor-widget elementor-widget-heading\" data-id=\"6b65fd91\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Who Needs to Lodge a BAS in Australia (and When It Applies to SMEs and Sole Traders)\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-79be99ff elementor-widget elementor-widget-text-editor\" data-id=\"79be99ff\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Not every business in Australia is required to lodge business activity statements, but for most SMEs, BAS reporting becomes mandatory once certain tax registrations are in place.<\/p><p>In general, you must lodge a BAS activity statement if your business is registered for:<\/p><ul><li>GST (Goods and Services Tax)<\/li><li>PAYG withholding (if you employ staff or pay contractors under certain arrangements)<\/li><li>PAYG instalments (if the ATO requires you to pay income tax progressively)<\/li><li>Other obligations that the Australian Taxation Office BAS system tracks<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3397e0f elementor-widget elementor-widget-heading\" data-id=\"3397e0f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">BAS Statements for Sole Traders: Do You Need One?<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2e858def elementor-widget elementor-widget-text-editor\" data-id=\"2e858def\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tYes, BAS statements for sole traders are very common. If you\u2019re a sole trader and registered for GST (or PAYG withholding), the ATO will usually require you to submit a BAS even if your business is small or home-based.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1573030 elementor-widget elementor-widget-heading\" data-id=\"1573030\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">When Do You Need to Register for GST?\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9b58ed9 elementor-widget elementor-widget-text-editor\" data-id=\"9b58ed9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Most SMEs must register for GST if their business has a GST turnover of $75,000 or more per year (or $150,000 or more for non-profit organisations). Once registered, <a href=\"https:\/\/befreeltd.com\/au\/services\/tax-outsourcing\/\">BAS lodgement<\/a> becomes a compliance requirement whether you\u2019re profitable or not.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-70a415a elementor-widget elementor-widget-heading\" data-id=\"70a415a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">What If You Don\u2019t Lodge BAS on Time?\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-75c6076 elementor-widget elementor-widget-text-editor\" data-id=\"75c6076\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The ATO can apply penalties for late lodgement, and repeated delays may increase compliance scrutiny. Even if you have no activity in a period, you may still need to lodge a \u201cnil\u201d BAS.<\/p><p>For SMEs, the key risk is assuming BAS is optional when, in reality, it becomes mandatory based on your registrations and turnover. Understanding this early helps avoid unnecessary ATO issues later.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2a52ff4 elementor-widget elementor-widget-heading\" data-id=\"2a52ff4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">BAS Due Dates and Lodgement Frequency (Monthly, Quarterly, or Annually)\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6188b61a elementor-widget elementor-widget-text-editor\" data-id=\"6188b61a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>One of the most confusing parts of business activity statements is understanding how often you need to lodge and what deadlines apply. The frequency of your BAS activity statement is generally determined by your annual turnover and the reporting cycle set by the Australian Taxation Office BAS system.<\/p><p>Here\u2019s a simple breakdown.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bce1b64 elementor-widget elementor-widget-heading\" data-id=\"bce1b64\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">If Your Annual Turnover Is More Than $20 Million\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-33f6b5b6 elementor-widget elementor-widget-text-editor\" data-id=\"33f6b5b6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><strong>Lodge:<\/strong> Monthly<br \/><strong>Deadline:<\/strong> Your BAS must be submitted within 21 days of the end of each month.<\/p><p>This reporting cycle is typically applied to larger businesses because the ATO expects more frequent tax reporting and payment activity.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bfe662c elementor-widget elementor-widget-heading\" data-id=\"bfe662c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">If Your Annual Turnover Is Less Than $20 Million\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-752b9f60 elementor-widget elementor-widget-text-editor\" data-id=\"752b9f60\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><strong>Lodge:<\/strong> Quarterly<br \/><strong>Deadlines:<\/strong><\/p><ul><li>Quarter 1 (July\u2013September): due 28 October<\/li><li>Quarter 2 (October\u2013December): due 28 February<\/li><li>Quarter 3 (January\u2013March): due 28 April<\/li><li>Quarter 4 (April\u2013June): due 28 July<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f0c40ee elementor-widget elementor-widget-text-editor\" data-id=\"f0c40ee\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tFor most SMEs, quarterly BAS is the standard cycle. However, the challenge is that GST reporting often doesn\u2019t align neatly with cash flow, meaning you may owe GST even if you haven\u2019t been paid by customers yet (depending on your accounting method).\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1b536b4 elementor-widget elementor-widget-heading\" data-id=\"1b536b4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">If Your Turnover Is Less Than $10 Million\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-74f6f544 elementor-widget elementor-widget-text-editor\" data-id=\"74f6f544\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>You may be eligible to lodge BAS annually, but there\u2019s an important catch:<\/p><p>Even if you lodge once per year, you may still be required to pay quarterly GST instalments based on your expected GST liability.<\/p><p>This can surprise many SMEs who assume \u201cannual lodgement\u201d means \u201cannual payment.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c239a98 elementor-widget elementor-widget-heading\" data-id=\"c239a98\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">If Your Annual Turnover Is Less Than $75,000 (or $150,000 for Non-Profits)\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-86af5b7 elementor-widget elementor-widget-text-editor\" data-id=\"86af5b7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><strong>Lodge:<\/strong> Annually<br \/><strong>Deadline:<\/strong> Submitted together with your income tax return<\/p><p>This category often includes micro-businesses and bas statements for sole traders, particularly those who are not registered for GST.<\/p><p><strong>Also Read:<\/strong> <a href=\"https:\/\/befreeltd.com\/au\/resources\/blogs\/tax-returns-due-australia\/\">Key 2026\u201327 Tax Return Deadlines and How to Stay Compliant<\/a><\/p><p>Understanding your BAS schedule is critical because missing deadlines can lead to penalties and unnecessary ATO attention, even if the amounts involved are small.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-32a64b51 elementor-widget elementor-widget-heading\" data-id=\"32a64b51\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What Information Is Included in a BAS? (GST, PAYG Withholding, Instalments and More)\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-69d7ceeb elementor-widget elementor-widget-text-editor\" data-id=\"69d7ceeb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>A BAS activity statement isn\u2019t only about GST. Depending on your ATO registrations, your business activity statements may include several tax obligations that SMEs must report accurately.<\/p><p>Here\u2019s what a BAS commonly covers:<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-423619a elementor-widget elementor-widget-heading\" data-id=\"423619a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">GST on Sales and Purchases<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5d49932b elementor-widget elementor-widget-text-editor\" data-id=\"5d49932b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>If you\u2019re registered for GST, you must report:<\/p><ul><li>GST collected on sales<\/li><li>GST credits claimed on eligible purchases<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-54153746 elementor-widget elementor-widget-text-editor\" data-id=\"54153746\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tThis determines whether you owe GST or receive a refund.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-597ecb7 elementor-widget elementor-widget-heading\" data-id=\"597ecb7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">PAYG Withholding\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8886fdd elementor-widget elementor-widget-text-editor\" data-id=\"8886fdd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tIf you employ staff (or make certain contractor payments), BAS may include PAYG withholding amounts &#8211; tax withheld from wages and payable to the ATO.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-42478da elementor-widget elementor-widget-heading\" data-id=\"42478da\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">PAYG Instalments\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0a173e1 elementor-widget elementor-widget-text-editor\" data-id=\"0a173e1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tSome SMEs are required to pay PAYG instalments, which are prepayments towards their annual income tax bill.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c1123d3 elementor-widget elementor-widget-heading\" data-id=\"c1123d3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">FBT Instalments (If Applicable)\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0cc8c22 elementor-widget elementor-widget-text-editor\" data-id=\"0cc8c22\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>If your business provides certain employee benefits, BAS may also include Fringe Benefits Tax instalments.<\/p><p>Ultimately, your BAS is only as accurate as your bookkeeping. If your records are incorrect, your BAS reporting will be too, regardless of the software you use.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1a31fdf3 elementor-widget elementor-widget-heading\" data-id=\"1a31fdf3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Sample Business Activity Statement (BAS): How to Read It and What the Fields Mean\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-327ae9e8 elementor-widget elementor-widget-text-editor\" data-id=\"327ae9e8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tIf you look at a sample business activity statement, the labels can seem confusing, but they\u2019re simply grouped into GST, PAYG, and instalments.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-42c7cf2 elementor-widget elementor-widget-heading\" data-id=\"42c7cf2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">GST Section (G Labels)<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1042c2d elementor-widget elementor-widget-text-editor\" data-id=\"1042c2d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<ul><li><strong>G1 \u2013 Total Sales:<\/strong> Total income for the period (taxable + GST-free sales)<\/li><li><strong>G10 \u2013 Capital Purchases:<\/strong> Asset purchases like equipment or vehicles<\/li><li><strong>G11 \u2013 Non-Capital Purchases:<\/strong> Day-to-day expenses such as rent, software, marketing<\/li><li><strong>1A \u2013 GST on Sales:<\/strong> GST collected from customers<\/li><li><strong>1B \u2013 GST on Purchases:<\/strong> GST credits claimed on business expenses<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-70146d8 elementor-widget elementor-widget-text-editor\" data-id=\"70146d8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tThe difference between 1A and 1B determines whether you owe GST or receive a refund.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-797021e elementor-widget elementor-widget-heading\" data-id=\"797021e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">PAYG Withholding (W Labels)\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-099fb32 elementor-widget elementor-widget-text-editor\" data-id=\"099fb32\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<ul><li><strong>W1 \u2013 Total Salary, Wages and Other Payments:<\/strong> Gross wages paid<\/li><li><strong>W2 \u2013 Amount Withheld:<\/strong> PAYG tax withheld and payable to the ATO<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-39e60c9 elementor-widget elementor-widget-heading\" data-id=\"39e60c9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">PAYG Instalments (T Labels)\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c71c716 elementor-widget elementor-widget-text-editor\" data-id=\"c71c716\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<ul><li><strong>T1 \u2013 PAYG Instalment Income:<\/strong> Income used to calculate instalments<\/li><li><strong>T7 \u2013 PAYG Instalment Amount Payable:<\/strong> Instalment due to the ATO<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-aff52d4 elementor-widget elementor-widget-text-editor\" data-id=\"aff52d4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tEven with accounting software, BAS reports can be incorrect if GST, payroll, or transaction coding is not set up properly, especially for SMEs and bas statements for sole traders.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6576d83 elementor-widget elementor-widget-heading\" data-id=\"6576d83\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Common BAS Mistakes That Put SMEs at Risk with the ATO\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-be5e678 elementor-widget elementor-widget-text-editor\" data-id=\"be5e678\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Most BAS issues happen due to incorrect bookkeeping, not intentional errors. Even small mistakes can impact your business activity statements and increase ATO compliance risk.<\/p><p>Common BAS mistakes include:<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5b7b218 elementor-widget elementor-widget-text-editor\" data-id=\"5b7b218\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<ul><li>Incorrect GST coding on sales or purchases<\/li><li>Claiming GST credits without valid tax invoices<\/li><li>Mixing personal and business expenses (common in bas statements for sole traders)<\/li><li>Payroll and PAYG withholding errors, especially when systems don\u2019t align<\/li><li>Reporting transactions in the wrong period, affecting GST and PAYG amounts<\/li><li>Late BAS lodgement or rushing to lodge without proper checks<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-016768c elementor-widget elementor-widget-text-editor\" data-id=\"016768c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tThe key takeaway: BAS compliance depends on having accurate, well-maintained accounting records behind the report and not just submitting it on time.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a7725cf elementor-widget elementor-widget-heading\" data-id=\"a7725cf\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Need help with BAS accuracy and ATO compliance?\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fc258a2 elementor-widget elementor-widget-text-editor\" data-id=\"fc258a2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Speak to our team about <a href=\"https:\/\/befreeltd.com\/au\/services\/accounting-outsourcing\/\">outsourced accounting support for Australian SMEs<\/a> or fill out the <a href=\"https:\/\/befreeltd.com\/au\/contact-us\/\">Befree contact form<\/a> to discuss your requirements and get a tailored solution<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>For many Australian small businesses, BAS lodgement is one of those tasks that feels simple in theory, but quickly becomes stressful in practice. You\u2019re not just reporting numbers. You\u2019re reporting them in the format the Australian Taxation Office (ATO) expects, using the right GST codes, and meeting strict due dates that come with real penalties [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":14178,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-14176","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Business Activity Statements (BAS) for SMEs ATO-Compliant<\/title>\n<meta name=\"description\" content=\"Learn what Business Activity Statements (BAS) are, who needs to lodge them, key due dates, and how SMEs can stay accurate and ATO-compliant.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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