How to register for GST and lodge a BAS

What is a BAS?

A business activity statement (also known as a BAS) is a way to report your business’s Goods and Services Tax (GST) activity during a specific period. It is a form that the Australian Taxation Office (ATO) sends to all businesses that are registered for GST. Using the information in your business activity statement, the ATO calculates your GST refund or bill. The form is also where you report your PAYG withholding obligations, fringe benefits tax obligations and any other business taxes that may apply to you, such as the wine equalisation tax or fuel tax credits.

How a BAS can help your business

A BAS can help you to stay on top of your business finances. To make filling out your BAS easier, it’s a good idea to track your finances consistently throughout the year rather than waiting until the end of the quarter or year to add everything up. Doing so can easily turn what could be a straightforward and stress-free exercise into a nightmare. Consistent tracking also allows you to make small observations and adjustments, such as putting aside the right amount of money for your GST instalments.

BAS due dates

Business owners need to fill out and lodge a BAS with the ATO between one and twelve times a year, depending on the size of their business. Your annual turnover determines how frequently you need to submit the document. Most small and medium-sized businesses only need to lodge once a year or quarterly. Here is a breakdown of the reporting due dates:

Annual turnover: more than $20 million

When to lodge: monthly.

Due date: within 21 days of the month closing.

Annual turnover: less than $20 million

When to lodge: quarterly.

Due dates:

• 28 October for quarter 1 (July to September)
• 28 February for quarter 2 (October to December)
• 28 April for quarter 3 (January to March)
• 28 July for quarter 4 (April to June).

Annual turnover: less than $10 million

When to lodge: You may be able to lodge your business activity statement annually, but you must still pay a quarterly GST instalment.

Due date: Submit your BSA with your income tax return.

Annual turnover: less than $75,000

When to lodge: annually.

Due date: when you lodge your income tax return.

How to lodge

There are a few different ways you can lodge your BAS. You can choose to do it yourself or a registered tax agent or BAS agent (usually an accountant or bookkeeper) can do it for you. It’s important to make sure they are registered with the Tax Practitioners Board (TPB). The submission dates may be different if you choose to go with a registered tax or BAS agent.

If you would prefer to do it yourself, you can lodge online, which gives you two extra weeks to lodge and pay. Here are the ways you can lodge online.

• If you’re a sole trader, you can use your MyGov account.
• If you do not operate as a sole trader, you can use the ATO’s Business Portal.
• Alternatively, you can lodge directly from your online accounting software, such as Xero or MYOB. Just make sure that your software is Standard Business Reporting (SBR) enabled.

Registering your business for GST

As mentioned, your BAS is where you report your business’s GST activity, but how do you know if your business needs to be registered for GST? Read on to find out.

Not every business needs to be registered for GST. It depends on the size and type of business you operate.

You will need to register for GST if:

• You run a business or enterprise with a GST turnover (the gross income from all your businesses minus GST) of $75,000 per year or more.
• You are starting a new business and anticipate that you will generate a GST turnover of $75,000 or more in the first year of operation.
• You operate a non-profit organisation that has a GST turnover of $150,000 per year or more.
• You are a taxi, ride-sharing or limousine driver. If you operate this type of business, you must register for GST, regardless of how much GST revenue you are generating. This applies to owner drivers as well as people who rent or lease a taxi.
• If you wish to claim tax fuel credits, you must register for GST.
• If you are an international retailer, and your total Australian sales is $75,000 per year or more, you must also register.

Even if you haven’t reached the GST threshold, you can choose to register for GST voluntarily. Registering has some benefits, but there are also some extra things that you’ll need to consider, so it’s important to think about whether it’s the best option for your business.

You reach the threshold for GST if either your current or projected GST turnover is $75,000 or more (or $150,000 or more for non-profit organisations). To work out your current GST turnover, simply take your turnover for the current month and add the previous 11 months. To calculate your projected GST turnover, add together your total revenue for the current month and the next 11 months.

Importantly, you don’t need to register for GST if your current GST revenue is at or above the threshold, but your projected GST revenue is below the threshold.

When to register for GST

Once your business reaches the threshold, you must register for GST within 21 days. It’s important to make sure you register. If you don’t, the ATO may ask you to pay GST on any sales you have made since the date you were required to register. Other penalties and interest may also apply. 

How to register for GST

You may choose to register for GST when you first register your business, or you can do it at any other time. Even if you run more than one business, you only need to register for GST once. Before registering, you need to have an Australian Business Number (ABN). If you’re registering as a company, you’ll need an Australian Company Number (ACN) before you can get an ABN. Once you have an ABN, registering for GST is simple and free. There are a few ways you can do it:

• online through the ATO’s Online Services for Business
• via the Business Registration Service, where you can also get your ABN and ACN
• using form NAT 2954 ‘Add a new business account’
• by calling the ATO
• through your registered tax agent or BAS agent.

GST concessions for small businesses

If your small business has a turnover of less than $10 million, you may qualify for these GST concessions.

• Accounting for GST on a cash basis: This means that you only need to account for GST in the period in which you receive payment for a sale or make a payment. The other method is accrual accounting, where you account for GST during the period in which you issued or were billed an invoice, regardless of whether the payment has been made. Accounting for GST on a cash basis makes it easier to manage your cash flow because it means that the money flowing through your business is better aligned with your activity statement liabilities.
• Paying GST in instalments: You have the option of paying GST in instalments, which the ATO calculates for you. You can adjust this amount each quarter as required.
• Annual apportionment of GST credits: If you purchase a business item that you intend to use partly for private purposes, you can claim full GST credits for these items on your BAS. You also only have to make a single adjustment to account for the private use percentage at the end of your income year.