BAS for Beginners: What It Is, When It’s Due, and How to Avoid Late Fees

If you are running a business in Australia, chances are you have heard the term BAS but may not be completely sure what it involves. For many business owners, Business Activity Statements can feel confusing, time-consuming and easy to get wrong. Understanding what BAS is, when it is due and how to stay compliant can help you avoid penalties, late fees and unnecessary stress.

This guide breaks down BAS in simple terms so you can feel confident managing your business tax obligations.

What Is BAS?

BAS stands for Business Activity Statement. It is a form businesses lodge with the Australian Taxation Office to report and pay certain taxes. Most commonly, BAS is used to report Goods and Services Tax, also known as GST.

Depending on your business, your BAS may also include:

• Pay As You Go withholding for employees

• Pay As You Go instalments for income tax

• Fringe Benefits Tax instalments

If your business is registered for GST, you are required to lodge a BAS, even if you did not collect GST during the period.

Who Needs to Lodge a BAS?

You generally need to lodge a Business Activity Statement if your business is registered for GST. This includes:

• Sole traders

• Companies

• Trusts

• Partnerships

Businesses with a turnover of $75,000 or more must register for GST. Some smaller businesses choose to register voluntarily, which also means they must lodge BAS.

If you employ staff, your BAS will also include PAYG withholding amounts. This makes accurate bookkeeping essential, as errors can lead to incorrect reporting and penalties.

What Does BAS Report?

Your BAS reports how much tax your business has collected and how much tax it can claim back. The most common components include:

GST Collected

This is the GST you have charged customers on your sales.

GST Credits

This is the GST you have paid on business expenses that you can claim back.

PAYG Withholding

If you have employees, this is the tax withheld from their wages.

PAYG Instalments

Some businesses pay income tax in instalments throughout the year instead of in a lump sum.

Accurate bookkeeping ensures these figures are correct and supported by records.

BAS Due Dates Explained

BAS due dates depend on how often you lodge. Most small businesses lodge quarterly.

Typical BAS due dates are:

• Quarter 1 July to September due 28 October

• Quarter 2 October to December due 28 February

• Quarter 3 January to March due 28 April

• Quarter 4 April to June due 28 July

If you lodge through a registered BAS agent, you may receive extended lodgement deadlines. This can provide valuable breathing room, especially during busy periods.

Monthly BAS lodgers have earlier and more frequent due dates, which makes ongoing bookkeeping even more important.

What Happens If You Lodge BAS Late?

Lodging your BAS late can result in penalties and interest charges. The ATO may apply a Failure to Lodge penalty, which increases the longer the BAS remains outstanding.

Late payment can also attract interest charges. Over time, these fees add up and can impact your cash flow.

Consistently late BAS lodgements can also raise red flags with the ATO, leading to increased scrutiny of your business.

How to Avoid BAS Late Fees

The best way to avoid late fees is preparation and consistency. Here are some practical steps to stay on track.

Keep Your Bookkeeping Up to Date

Accurate and regular bookkeeping ensures your BAS figures are ready when the due date arrives. Waiting until the last minute increases the risk of errors and missed deadlines.

Understand Your GST Obligations

Not all income and expenses are treated the same for GST. Knowing what includes GST and what does not is essential for correct reporting.

Use Accounting Software

Using software such as Xero or MYOB helps track GST, expenses and income in real time. This makes BAS preparation more efficient and reduces mistakes.

Work With a BAS Agent

A registered BAS agent can prepare and lodge your BAS on your behalf. They ensure compliance, accuracy and often provide extended due dates.

Set Reminders

Even with good systems, reminders are important. Mark BAS due dates in your calendar so they do not sneak up on you.

Common BAS Mistakes to Avoid

Many BAS issues come from simple but costly mistakes, including:

• Claiming GST on expenses that are not claimable

• Reporting cash flow incorrectly

• Missing PAYG withholding amounts

• Lodging with incomplete records

• Forgetting to lodge a nil BAS when required

Professional bookkeeping and BAS services can help prevent these errors before they become problems.

Should You Use a BAS Agent or Accountant?

A BAS agent specialises in preparing and lodging Business Activity Statements and managing GST and PAYG obligations. An accountant may also assist with BAS, as well as tax returns and broader business advice.

For many small businesses, working with a BAS agent alongside a bookkeeper provides the right balance of compliance and support. It also frees up time to focus on running the business.

BAS does not have to be overwhelming. With the right systems, accurate bookkeeping and professional support, Business Activity Statements become a routine part of managing your business finances.

Understanding what BAS is, when it is due and how to avoid late fees can save you time, money and unnecessary stress. If you are unsure about your BAS obligations or struggling to keep up, seeking advice early can make all the difference.