What is a Business Activity Statement (BAS)?

As seen in Woopi News February 2025

When a business is registered for GST, it is required to lodge a Business Activity Statement (BAS). For most businesses this is every three months (quarterly), with monthly or annual options being less common. Some business owners don’t understand what information is included in their BAS, or how the amount payable or refundable is calculated.

The most common BAS reporting items are:

Goods & Services Tax (GST): When you are GST registered, sales will include 10% GST unless you are selling GST Free goods or services. The GST you collect, is remitted to the ATO in your BAS. You can reduce the GST you pay to the ATO by the GST included in your business expenses.

Pay As You Go Withholding (PAYGW): Is the tax that is withheld from employee wages.

Pay As You Go Instalments (PAYGI): Tax instalments paid that will go towards the businesses tax liability at the end of the financial year. These are calculating by the ATO, using the information from the last tax return lodged. Your accountant can review your profit throughout the current year and check if these instalments are an appropriate amount and vary them up or down, if necessary.

Fuel Tax Credits (FTC): FTC provide a credit for the excise included in the price of the fuel your business uses in machinery, equipment, and heavy vehicles. If your business is not claiming FTC’s, you should check if it is eligible.

Your BAS liability or refund is equal to: GST on Income, minus GST on expenses, plus PAYGW, plus PAYGI, minus FTC.

Why is my BAS so high when my business profit is so low?

If you are struggling with this common question, this is a good one to discuss with your accountant so they can taylor the answer to your business. If you are considering changing accountants, give StaySharp Accounting a call or book online via our website.