Businesses must submit a Business Activity Statement(BAS) to the Australian Taxation Office to avoid fines and file their taxes correctly. This form is used for reporting various taxes. These include Goods and Services Tax (GST) compliance with the Australian Taxation Office (ATO), accurate records of financial transactions, and maintaining good standing. Understanding the proper process for filing and preparing the Business Activities Statement is vital. This guide provides comprehensive instructions for business owners to follow when preparing their Business Activity Statement for the 2025 financial year.
Understanding Your Business Activity Statement
The Australian Taxation Office can collect vital information from the Business Activity Statement about a business, including its income, expenses, and obligations. It can be used as a way to report on:
- GST is a tax that businesses must collect on any sales they make.
- PAYG, or PAYG withholding (withholding tax from wages), is the amount withheld by employers to cover employee taxes.
- PAYG Instalments- Tax paid in advance based on expected income taxes.
- Employers pay Benefits Tax instalments (FBT)
- Applies to the sale of luxury vehicles above the ATO’s set threshold.
- Wine Equalisation Tax (WET): A tax applied to wholesale sales of wine in Australia.
- Fuel Tax Credits apply to fuel purchases.
There is no need for all businesses to complete the entire form. You should only fill in the sections relevant to your company. Otherwise, you may make mistakes, and the ATO could take longer to process the form.
Loading your BAS Online
The Australian Taxation Office’s digital services have simplified the process of submitting BAS. ATO provides online services that enable businesses to submit BAS reports through their website for business reporting. The following are also ways of lodging a business statement:
- It is possible to use a BAS/tax agent who has been registered with the Tax Practitioners Board (TPB) or the BAS Agent Registry.
- Using accounting software that supports Standard Business Reporting (SBR) to lodge your BAS directly to the ATO.
- Software approved for online lodging through BAS statements
- One-person businesses reporting through myGov
- If you want to report zero activity, either use the mail option or the phone number.
The Australian Taxation Office typically sends BAS around two weeks before the end of the period. Businesses have enough time before that to ensure they submit BAS in the correct format.
Understanding BAS Due Dates
It is important to note that the business must comply with this date to avoid incurring penalties. The deadline depends on your company’s size and annual turnover:
- Monthly BAS required for Businesses With GST Turnover Above $20 Million
- Quarterly BAS: For most Small Businesses
- Annual BAS: Businesses registered voluntarily for GST that do not have a gross revenue above $75,000
You must adhere to these dates; failure to do so may result in penalties. If the Australian Tax Office is not able to process the BAS within the specified time frame, the Australian Tax Office will be happy to work out alternative arrangements.
Tips for Preparing an Accurate BAS
For the BAS to be accurate, all figures must be checked carefully. For businesses to avoid making mistakes, they must record sales and purchases in the correct reporting periods. Labels are provided on the statement of business activities for different types of taxes. They must be accurately applied.
- GST: G1-G24, 1A, 1B
- PAYG Retention: W1–W5
- PAYG instalments: T1-T11
- FBT instalments: F1-F4, 6A, 6B
- Luxury Cars Tax: 1E,1F
- Wine Equalisation Tax: 1C, 1D
- Fuel Tax credits: 7C, 7D
Keep accurate records and organise them for your sales, purchases, or tax payments. You will find it easier to reconcile, and you can be confident that the Australian Taxation Office receives accurate information.
Step To Lodge BAS Online
BAS Correction of Mistakes
Mistakes may happen during BAS preparation, and the ATO allows businesses to correct them. Businesses may revise the BAS online or include adjustments in the next BAS statement. It is essential to maintain detailed records of corrections, including the original figures and the reasons for the changes. This practice helps maintain transparency and prevents disputes with the Australian Tax Office.
Professional Help and Software
Businesses find it much easier to complete and submit BAS Statements online when they use accounting software. Many of these software packages include automatic calculations as well as pre-filled form fields. This reduces the risk of mistakes. A BAS Agent is another reliable option. They ensure accurate BAS filing and ensure that it is submitted on time. Expert assistance can prove particularly useful to companies that face multiple tax obligations or have complicated reporting requirements.
Simplified BAS Instalment Notices
Some businesses get instalment notices instead of a full BAS. These notices can be simpler, and they only request payment of GST/PAYG instalments. To accurately report and make payments, you need to be able to tell if the business has received a full BAS.
Lodging BAS on Time
Timely lodgement of the BAS is important because it prevents penalties and avoids interest charges from the Australian Taxation Office. Businesses should track their due dates and stay organized with reminders or automated alerts. Preparing all records early gives enough time to review figures, correct errors, and ensure full compliance. Consistent, on-time BAS lodgement helps maintain a smooth tax reporting process.
Importance of Regular Reconciliation
Regular reconciliation of accounts ensures that sales, purchases, bank statements, and GST records match accurately. This allows errors to be found early and reduces the chance of incorrect reporting during BAS preparation. When businesses reconcile monthly or quarterly, they have clear and up-to-date financial information. Consistent reconciliation also supports accurate tax calculations and improves the overall reliability of BAS submissions.
Additional Resources
Australian Taxation Office official resources provide the most updated and accurate guidance for businesses.
- The official ATO Business Activity Statements Page.
- ATO Online Services for Business
Use of official resources helps ensure the correct preparation and compliance with the 2025 business requirements.
Conclusion
Preparing and lodging a Business Activity Statement is an essential duty for every Australian business, and knowing the right steps helps them stay fully correct with the rules of the Australian Taxation Office, In contrast a company that keeps tidy records, follows every tax label instruction, and checks each number before sending the form lowers the chance of mistakes, slow processing, and unwanted penalties. Using online services, approved digital tools, or assistance from a trained BAS agent also makes the task smoother and ensures that every lodgement follows the new 2025 ATO rules steadily and properly.
Your business can receive friendly assistance to prepare and lodge a Business Activity Statement smoothly. Our support team at Wollogong Taxation Services will guide you through easy steps to ensure your records stay safe and accurate in accordance with Australian Taxation Office rules. The team provides steady assistance with checking figures, using tax labels, lodging online, and answering important questions, which allows your business to send the right information at the right time. Reaching out brings comfort, confidence, and accurate reporting for every BAS period.
FAQs
What is the business activity statement (BAS)?
A business activity statement (BAS) is the form that the Australian Tax Office uses to collect GST, Pay As You Go withholding, or other taxes.
How do you submit BAS via the internet?
ATO-approved accounting software is available for online submission by businesses. They may also hire a BAS Agent to do so.
What happens when BASs are submitted after the due date?
The penalties that can be applied if a BAS is submitted late or if taxes are paid late may include late fees. The Australian Taxation Office should be contacted as soon as possible to discuss alternative options.
How to fix errors in BAS statements?
Errors may be corrected online or included in the next BAS while keeping detailed records of the original figures and adjustments.
What is the best way to book a BAS for accommodation?
A BAS agent is a valuable asset for businesses with complex ATO BAS reporting requirements.
