FAQs

The penalty for late lodgement can be $180 for every 28 days late. The penalty for understating your BAS payment depends on the understatement but can be significant.

A BAS return is a return that GST registrants need to lodge (usually quarterly for small business) to account for:

• The difference between GST Collected (for customers) and GST Paid (to suppliers)
• PAYG withheld from employees
• Where required, an advance on your income tax (called PAYG income tax)

For quarterly payers who are not using a professional to lodge their return, BAS payment due dates are as follows:

• 1st Quarter – July, August, September due 28th October
• 2nd Quarter – October, November, December due 28th February
• 3rd Quarter – January, February, March due 28th April
• 4th Quarter – April, May, June due 28th July

Extensions apply if you are using a BAS agent or tax agent.

Here are our recommended 5 simple and quick steps:

1. Business Bank Account. If you don’t already have it, set up a separate bank account for your business. Run all income and expenses through that account.
2. Bookkeeping System. Decide what Bookkeeping System you want to use. Your choices are a spreadsheet or bookkeeping software like Xero or MYOB.
3. Providing your information. Some BAS or Tax Agents insist on the financial information being in a certain format (eg “must be a spreadsheet or MYOB”). If you decide now that you want to get help at BAS time, then you can know what that provider requires.
4. Put All Income and Eligible Expenses Through the Account. Get clear on all the expenses that you are incurring in running your business and take them out of the business bank account. If these expenses include GST – and most do – then you will reduce your GST payable by the amount of the GST included in the purchases. (If you have incurred the expense personally – eg out of another account or on credit card – just reimburse the business portion of the expense out of the business account).
5. Save For BAS Time. Assuming your revenue exceeds your expenses, you will need to pay money at BAS time. To make sure that you have the money, put a little aside each week. A second or reserve business bank account is a good idea for this purpose.