Running a business in Australia comes with essential tax obligations, one of the most common being the Business Activity Statement (BAS). While many business owners are familiar with the term, fewer understand exactly who needs to lodge a BAS, and how the requirements change depending on your business structure.
If you’re a sole trader earning over $75,000, operating a company with employees, or managing a trust with rental income, lodging a BAS may not be optional; it may be a legal requirement under Australian tax law.
In this guide, we explain when BAS lodgement applies and how obligations differ by entity type.
What Is a BAS and When Is It Required?
A Business Activity Statement (BAS) is a form submitted to the Australian Taxation Office (ATO) by businesses that are registered for Goods and Services Tax (GST). The BAS consolidates several tax reporting obligations into a single document, helping businesses meet compliance requirements without multiple lodgement processes.
Depending on the size and structure of your business, your BAS may include:
- GST (Goods and Services Tax) is collected and paid
- PAYG withholding for employee wages
- PAYG instalments, advance payments of income tax
- Other taxes such as Fringe Benefits Tax (FBT), Luxury Car Tax (LCT), Wine Equalisation Tax (WET), and Fuel Tax Credits (FTC)
Once you’re registered for GST, the ATO will automatically generate a BAS for your reporting cycle. Lodging it on time is not optional; it’s a legislative requirement under the Taxation Administration Act 1953.
Learn more about BAS and GST compliance through our tax advisory services.
Who Needs to Lodge a BAS?
Lodging a BAS is mandatory if your business falls under one or more of the following categories:
- You are registered for GST, which is required when your annual turnover exceeds $75,000 for most businesses (or $150,000 for non-profit organisations).
- You employ staff and are required to withhold PAYG tax from wages.
- You are directed by the ATO to make PAYG instalments based on your prior tax assessments.
It’s important to note that having an Australian Business Number (ABN) alone does not trigger a BAS obligation. The key triggers are GST registration and PAYG obligations.
BAS Requirements by Business Type
Each business structure carries different BAS reporting responsibilities. Below is a breakdown of what’s required by entity type, based on ATO guidelines and current thresholds.
Sole Traders
If you’re a sole trader, you must lodge a BAS only if you’re registered for GST, which becomes mandatory once your GST turnover exceeds $75,000 per year. If you employ staff, you’ll also need to report PAYG withholding.
However, if you’re below the GST threshold and have no PAYG obligations, you’ll only need to lodge an annual income tax return, not a BAS.
Example: Jane runs a mobile physio business earning $85,000 annually. She’s registered for GST and lodges a quarterly BAS to report GST collected and PAYG instalments.
Partnerships
For partnerships, the partnership entity is responsible for lodging the BAS, not the individual partners. If the partnership is registered for GST, it must report:
- GST collected and paid
- PAYG instalments
- PAYG withholding if staff are employed
Each partner still lodges their own tax return separately. However, the BAS is filed on behalf of the entire partnership.
Companies (Pty Ltd)
Companies must lodge a BAS if they are GST-registered. Reporting requirements typically include:
- GST
- PAYG withholding (if staff are employed)
- PAYG instalments
- Other obligations, such as FBT, if applicable
Larger companies may be placed on a monthly BAS lodgement cycle depending on turnover. Smaller companies usually lodge quarterly.
Example: ABC Consulting Pty Ltd has four employees and invoices over $250,000 annually. It lodges monthly BAS to report GST and PAYG withholding.
Trusts
Trusts, whether discretionary or unit trusts, are required to lodge a BAS if they are registered for GST or have other ATO-reportable tax obligations such as PAYG withholding or instalments.
In all cases, the trustee is legally responsible for ensuring the BAS is accurate and lodged on time. The trust’s obligations are similar to those of a company, particularly where employees or business income is involved.
Example: A family trust owns two commercial rental properties. The trustee is registered for GST and lodges a quarterly BAS reporting rental GST income and PAYG instalments.
Non-Profit Organisations
Non-profits are only required to register for GST if their annual turnover exceeds $150,000. Below this threshold, registration is optional. However, if the entity chooses to register, it must lodge a BAS, regardless of turnover.
The same rules apply: once registered, the non-profit must report GST, PAYG withholding (if applicable), and other taxes via the BAS.
Tip: Voluntary GST registration can allow eligible non-profits to claim GST credits on expenses, but it also triggers BAS obligations.
How Often Do You Need to Lodge a BAS?
Your lodgement frequency depends on your business’s size and ATO direction. The ATO assigns a default frequency when you register for GST, but this may change if your circumstances evolve.
Common BAS Lodgement Cycles:
Lodgement Frequency | Who It Applies To |
Monthly | Turnover > $20 million or ATO-directed |
Quarterly | Default for most small–medium businesses |
Annually | For voluntarily GST-registered businesses with low turnover |
Key Dates for 2025
- Quarterly: Due by the 28th of the month after each quarter (e.g., Q1 ends 31 March → due 28 April)
- Monthly: Due by the 21st of the following month
- Annual: Due by 31 October (same as income tax return)
These dates apply unless you’re lodging through a registered BAS or tax agent, which may extend deadlines.
For clients with tight reporting windows, our bookkeeping services ensure you’re always BAS-ready ahead of time.
What Happens If You Don’t Lodge Your BAS?
Failure to lodge a BAS on time can have serious financial and compliance consequences, even for small oversights.
Consequences include:
- Failure to Lodge (FTL) Penalty: The ATO charges one penalty unit ($313 from July 2024) for every 28 days the BAS is overdue, up to 5 units.
- Interest on Outstanding Amounts: General Interest Charges (GIC) apply to unpaid BAS liabilities and compound daily.
- Director Penalty Notices (DPNs): For companies, unpaid PAYG withholding can result in personal liability for directors under the Director Penalty Regime.
- Increased Audit Risk: Late or missing lodgements raise red flags with the ATO and may prompt additional scrutiny or debt recovery action.
Note: If your BAS has nil activity, it must still be lodged. Failing to lodge a zero-activity BAS can still trigger penalties.
Behind on your BAS? Our Chartered Accountants can help you negotiate ATO payment plans and bring your lodgements up to date.
How Can You Lodge a BAS?
There are several ways to lodge your BAS with the ATO, depending on your business systems and preferences. The ATO assigns lodgement options when you register for GST, but you can also work through a registered BAS or tax agent for added accuracy and flexibility.
Lodgement Options:
- Online via the ATO Business Portal or myGov (for sole traders): Secure login via myGovID and Relationship Authorisation Manager (RAM) is required.
- Using Accounting Software: Integrated platforms like Xero, MYOB, or QuickBooks can lodge directly through the Standard Business Reporting (SBR) system.
- Through a Registered BAS Agent or Tax Agent: Agents have extended lodgement deadlines and can communicate directly with the ATO on your behalf.
- Paper Lodgement: Still available for some businesses, but not recommended due to longer processing times.
For clients using cloud software, Blackwattle Tax can prepare and lodge your BAS accurately and on time, while ensuring GST, PAYG, and other liabilities are reconciled correctly.
Understand Your BAS Obligations by Structure
If your business is registered for GST, you must lodge a BAS, regardless of whether you’re a sole trader, company, trust, partnership, or non-profit. Your obligations will depend on:
- Business type and structure
- GST turnover and employee headcount
- ATO-directed PAYG instalments or withholding
- Reporting frequency (monthly, quarterly, annually)
Lodging on time avoids penalties and keeps your ATO records clean, which matters when applying for loans, grants, or making business decisions.
Need Help With BAS Lodgement?
At Blackwattle Tax, our Chartered Accountants work with founders, family businesses, and growing companies to prepare, review, and lodge BAS accurately, on time, every time.
Whether you’re just over the $75K threshold or managing payroll for a team of 20, we’ll ensure your tax reporting is compliant and strategically structured.
Book a FREE 30-minute consultation to get clarity on your BAS obligations.
Disclaimer: This article provides general information and does not constitute legal or tax advice. For personalised guidance, consult a registered tax agent.
Common Questions Answered
Do I need to lodge a BAS if I’m not registered for GST?
No, unless you are required to report PAYG withholding or have PAYG instalment obligations, you do not need to lodge a BAS.
What’s the difference between BAS and IAS?
- BAS includes GST, PAYG withholding, PAYG instalments, and other taxes.
- IAS (Instalment Activity Statement) is used by businesses not registered for GST, reporting only PAYG obligations.
Can I skip lodging a BAS if I have no sales or expenses?
No. You must still lodge a nil BAS to avoid late penalties. You can lodge this online by ticking “No activity this period.”
Can I lodge BAS myself as a sole trader?
Yes. Many sole traders use myGov or accounting software. However, if you’re unsure about GST treatment or PAYG, working with a registered tax agent ensures compliance and reduces audit risk.
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Disclaimer: We endeavour to make sure the information provided in this guidance is up to date and accurate. Please note, that the information is only intended to be a guide, with a general overview of information. This guidance is not a comprehensive document and should not be interpreted as legal advice or tax advice. The information is general in nature. You should seek the assistance of a professional opinion for any legal and tax issues related to your personal circumstances.