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GST and BAS

BAS explained: what a Business Activity Statement actually asks for

A BAS is the form you use to tell the ATO how much GST you collected, how much you paid, and how much tax you withheld from wages. Most small businesses lodge one every quarter.

9 min read · Last reviewed 2026-09-27

On this page

  1. 1.What a BAS is for
  2. 2.The labels, in plain language
  3. 3.How often you lodge, and when it is due
  4. 4.Cash or accruals: which basis you report on
  5. 5.Preparing a BAS without dreading it

If you are registered for GST you have to lodge a Business Activity Statement. It looks intimidating because it is a government form covered in code numbers, but the codes are just labels for totals you already have in your books. This guide walks through the ones a small business actually fills in.

What a BAS is for

A BAS does two jobs at once. First, it reconciles GST: you collected GST on your sales, you paid GST on your purchases, and the difference is either owed to the ATO or refundable to you. Second, it reports amounts you withheld on behalf of someone else — most commonly PAYG withholding from employee wages.

The form you receive depends on what you are registered for. A sole trader registered for GST with no employees fills in a handful of G-labels and nothing else. An employer also fills in the W-labels. Nobody fills in all of it.

The labels, in plain language

These are the labels Ledgable pre-fills, and what each one is a total of.

LabelName on the formWhat goes in it
G1Total salesEverything you sold in the period, GST included. This includes GST-free sales, not just taxable ones.
G2Export salesThe part of G1 that was exported. Exports are GST-free.
G3Other GST-free salesThe rest of your GST-free sales — basic food, most health and education services.
G10Capital purchasesThings you bought that are assets rather than running costs: a vehicle, machinery, a computer.
G11Non-capital purchasesOrdinary business purchases — stock, rent, subscriptions, fuel. GST included.
1AGST on salesThe GST you actually collected. This is the amount you owe.
1BGST on purchasesThe GST you actually paid and can claim back.
GST labels on a Business Activity Statement

The number that matters is 1A minus 1B. If it is positive you pay the ATO; if it is negative you are due a refund.

Note: Why G1 and 1A are not just G1 ÷ 11

A lot of worked examples derive the GST on sales by dividing total sales by eleven. That only works if every single sale was taxable at 10%. As soon as you have GST-free sales in the mix, the division overstates what you owe. Ledgable takes 1A from the GST actually recorded on each transaction rather than deriving it from a total, which is why the two figures may not divide neatly — and that is correct.

If you have employees

LabelName on the formWhat goes in it
W1Total salary, wages and other paymentsGross wages for the period, before tax.
W2Amounts withheld from payments shown at W1The PAYG tax you withheld from those wages.
W5Total amounts withheldW2 plus any other withholding — for example where a supplier did not quote an ABN.

Superannuation is not on the BAS. Super is paid to employees' funds, not to the ATO, and it runs on its own deadline — which changed on 1 July 2026. See Payday Super from 1 July 2026.

How often you lodge, and when it is due

Your reporting cycle is set by your GST turnover, and the ATO tells you which one you are on.

CycleWho it applies toDue date
MonthlyCompulsory if your GST turnover is $20 million or more. You can also elect it voluntarily.The 21st of the following month. A July BAS is due 21 August.
QuarterlyMost small businesses: GST turnover under $20 million, unless the ATO has told you to report monthly.Q1 Jul–Sep: 28 October · Q2 Oct–Dec: 28 February · Q3 Jan–Mar: 28 April · Q4 Apr–Jun: 28 July
AnnuallyVoluntarily registered for GST with turnover under $75,000.31 October, as an annual GST return rather than a BAS.
GST reporting cycles and due dates

Watch out: The December quarter is the one people get wrong

Quarter 2 covers October to December but is not due in January — it is due 28 February, because the ATO allows for the holiday period. The 28 January date that sits in a lot of people's heads is the old quarterly superannuation deadline, which is a different obligation entirely. Two different dates, two different payments.

If a due date lands on a weekend or a public holiday, you have until the next business day. Lodging through a registered tax or BAS agent usually earns you an extension on most quarters, though not on the February one.

Cash or accruals: which basis you report on

On a cash basis you account for GST in the period the money actually moves. On an accruals basis you account for it when you issue or receive the invoice, regardless of when it is paid. Businesses with aggregated turnover under $10 million can choose cash accounting for GST; above that, accruals is the default.

For a small business with slow-paying customers, cash basis is usually kinder to cash flow: you do not hand the ATO GST on an invoice you have not been paid for yet. The trade-off is that your BAS and your profit and loss will tell slightly different stories — see How to read a profit and loss statement.

Preparing a BAS without dreading it

Almost all BAS pain is the same problem: three months of uncategorised transactions, all landing at once, a week before the deadline. The fix is not working faster in that week. It is making sure the categorisation happens continuously.

A BAS that takes twenty minutes

  • Reconcile your bank to the last day of the quarter — every transaction accounted for, nothing sitting unallocated.
  • Check the GST treatment on anything unusual: overseas subscriptions, bank fees, ASIC fees and insurance stamp duty are the usual traps.
  • Confirm any purchase over $1,000 has a valid tax invoice on file. No invoice, no GST credit.
  • Split your capital purchases out from your running costs so G10 and G11 are right.
  • Run your GST report and compare it against last quarter. A number that has moved by an order of magnitude is usually a coding error, not a great quarter.
  • If you have employees, check that gross wages on the BAS agree with what your payroll reported through STP.
  • Lodge, then set the payment aside. GST you collected was never your money.

Note: Where Ledgable helps

Ledgable tracks your GST position live rather than at quarter end, categorises transactions as they arrive, and pre-fills the G-labels and 1A/1B from your actual ledger so you can see the working behind every number. You review and lodge through your existing channel — direct lodgement with the ATO is on our roadmap, not in the product yet.

Ledgable tracks GST as transactions arrive and pre-fills your BAS labels from the ledger, with the working shown.

See BAS preparation in Ledgable

Common questions

Yes. If you are registered for GST and the ATO has issued you a BAS for the period, you must lodge it even if every figure is zero. A nil BAS can be lodged in a couple of minutes, and not lodging attracts failure-to-lodge penalties.
A BAS reports GST and amounts withheld, usually every quarter. An income tax return reports your profit for the whole financial year and works out income tax. They use the same underlying bookkeeping but they are separate lodgements on separate deadlines.
Only on purchases that relate to your business, where GST was actually charged, and where you hold a valid tax invoice for anything over $1,000. You cannot claim GST on GST-free purchases, on private spending, or on a supplier who is not registered for GST.
The ATO can apply a failure-to-lodge penalty that accrues per 28-day period late, and interest applies to unpaid amounts. If you cannot lodge or pay on time, contact the ATO before the due date - support options exist, but they are much easier to access before you have missed the date.
No. Super is paid directly to your employees' super funds, not to the ATO, and it is not reported on the BAS. PAYG withholding from wages does go on the BAS, at labels W1 and W2.

Sources

Every rate, threshold and due date in this guide was checked against the pages below on the dates shown. Tax rules change — verify against the ATO before you rely on anything here, and get advice for your own situation.

  • Due dates for lodging and paying your BAS — checked 2026-09-27
  • When and how to report and pay GST — checked 2026-09-27
  • Annual GST reporting — checked 2026-09-27

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