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In Australia, most small businesses do not lodge a separate routine “GST return”. They report GST collected, claim eligible GST credits and pay or receive the difference through a Business Activity Statement (BAS). This guide takes you from checking registration and gathering records to calculating labels, lodging the BAS and correcting mistakes. Your own BAS is the authority for the reporting period and due date shown on it.
What a GST return means in Australia
Australian businesses generally account for GST on a BAS. The Australian Government describes the core process simply: “You report GST and claim GST credits on a BAS.” GST is generally 10% on taxable goods and services, but not every sale or purchase receives the same treatment. Some transactions are GST-free or otherwise treated differently, so classification matters as much as arithmetic.
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Your BAS compares two broad amounts for the period:
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- GST credits you can claim for eligible business purchases.
If GST on sales is greater than your credits, you pay the balance. If credits are greater, the BAS may produce a refund or credit, subject to the Australian Taxation Office’s rules and your account position.
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1. Check whether you must be registered for GST
Standard turnover threshold
GST registration is generally compulsory when your business’s GST turnover reaches $75,000. The threshold is $150,000 for not-for-profit organisations. The relevant measure is GST turnover, not simply the cash sitting in your bank account.
If you expect your turnover to reach the applicable threshold, Australian Government guidance says you have 21 days to register. A business can also register voluntarily while below the compulsory threshold, which can allow it to claim eligible GST credits but also creates ongoing BAS obligations.
Businesses with different triggers
Taxi and ride-sourcing businesses have a GST registration trigger that does not depend on reaching the standard turnover threshold. Businesses seeking fuel tax credits may also have a different registration requirement. Check the current Australian Taxation Office position for those activities before choosing a reporting approach.
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- The business is actually registered for GST for the period being reported.
- The GST accounting basis recorded with the Australian Taxation Office is understood.
- The BAS belongs to the correct entity, reporting period and business activity.
- Any cancellation, backdating or recent registration change has been reflected in the records.
2. Identify your reporting period and BAS due date
Reporting frequency depends on GST turnover and eligibility; it is not the same for every GST-registered business.
| Situation | Usual reporting cadence | What to verify |
|---|---|---|
| GST turnover below $20 million | Generally quarterly | Use the period and due date printed on the BAS; an election or special arrangement can change the result. |
| GST turnover of $20 million or more | Generally monthly | Confirm the monthly obligation and any ATO direction or exception. |
| Eligible business voluntarily registered below the compulsory threshold | May report annually | Annual eligibility and the applicable annual BAS instructions govern. |
For quarterly reporters, the usual due dates are 28 October, 28 February, 28 April and 28 July. These dates are not universal: follow the date on your BAS. When a due date falls on a weekend or public holiday, the next business day generally applies. An agent may have a different lodgment arrangement, but payment requirements and the amount shown on your account still need to be managed.
3. Gather and reconcile records for the period
Bring the complete transaction trail together
Collect sales invoices, receipts, purchase invoices, credit notes, bank and payment-platform records, asset purchases, and any adjustments that belong to the BAS period. Reconcile the sales and purchase totals to your bookkeeping records and bank activity so that omitted transactions and duplicates are found before lodging.
Keep GST records for five years, according to Australian Government small-business guidance. Store the source documents in a way that lets you connect each BAS figure to the underlying transaction. Digital record keeping is acceptable when the records remain complete, readable and retrievable.
Check tax invoices before claiming credits
GST credits are generally available only for the business-use portion of an eligible purchase and must be supported by a valid tax invoice when one is required. Match the invoice to the supplier, date, amount and GST treatment recorded in your books. If an invoice is missing or does not support the claimed GST, hold the credit until the documentation is corrected.
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Separate private and mixed use
Private purchases do not create a GST credit. For an item used partly for the business and partly privately, apportion the credit to the business-use share and retain the basis for that apportionment. The same discipline applies to recurring expenses, vehicles, equipment and other assets used for both purposes.
4. Classify every sale and purchase correctly
Sales
Separate taxable sales from GST-free sales and transactions with another GST treatment. Do not apply 10% automatically to every invoice. Review the nature of the supply and the tax treatment recorded in your accounting system before transferring totals to the BAS.
Purchases
Identify purchases that are both connected with the business and eligible for a GST credit. Exclude private use, non-creditable amounts and any portion for which the required evidence is not available. For mixed-use transactions, record the business percentage rather than claiming the full invoice GST.
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Adjustments and later changes
Credit notes, refunds, cancelled sales and changes to an earlier transaction can alter the GST amount. Keep the original document and the adjustment document together, and determine whether the change belongs in the current period or requires a BAS adjustment under the Australian Taxation Office’s current instructions.
5. Calculate GST collected and GST credits
GST on taxable sales
Australian GST is generally 10% of the taxable price. If you quote a GST-exclusive price, multiply the taxable amount by 10% to find the GST. If the price is GST-inclusive, the GST component is generally one-eleventh of the total.
GST in a GST-inclusive purchase
For an eligible GST-inclusive purchase, divide the total by 11—not by 10—to calculate the GST component. For example:
- A taxable sale of $1,100 including GST contains $100 of GST ($1,100 ÷ 11).
- An eligible business purchase of $220 including GST contains a potential $20 GST credit ($220 ÷ 11), subject to a valid tax invoice and any private-use apportionment.
These examples illustrate the calculation only. Confirm that the sale or purchase is taxable and creditable before including the amount on the BAS.
Reconcile the net position
Add the GST on taxable sales for the period, then add eligible GST credits on business purchases. The difference is the net GST amount to report and pay or the amount that may be refundable. Compare the calculation with your sales ledger, purchase ledger and bank reconciliation before lodging.
6. Choose the correct BAS reporting method
Simpler BAS for businesses below $10 million GST turnover
Businesses below $10 million GST turnover generally use Simpler BAS. The main GST labels are:
| Label | What it captures | Preparation focus |
|---|---|---|
| G1 | Total sales | Include the sales required by the BAS instructions, while applying the correct treatment to GST-free and other sales. |
| 1A | GST on sales | Report GST collected on taxable sales for the period. |
| 1B | GST on purchases | Report eligible GST credits supported by records and adjusted for private or mixed use. |
Simpler BAS reduces the number of GST fields but does not remove the need to classify transactions or retain evidence.
Full reporting at higher turnover
Businesses at or above $10 million GST turnover generally need full BAS reporting, which includes additional transaction categories. The detailed labels and instructions differ from Simpler BAS, so do not copy a smaller business’s process without checking the form issued to your entity.
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The $10 million threshold concerns the BAS method, while the $20 million threshold generally concerns quarterly versus monthly reporting. A business can therefore have a reporting frequency and a BAS method that must be assessed separately.
7. Lodge the BAS
Option A: ATO online services
Sign in to the Australian Taxation Office’s online business services, open the BAS for the correct period, enter the figures from your reconciliation, review the calculated net amount and submit. Save the confirmation or receipt number with the period’s records.
Option B: SBR-enabled accounting software
Standard Business Reporting (SBR)-enabled software can transfer BAS data electronically. Reconcile the software figures to the underlying invoices and bank records before transmission; software does not decide whether a transaction is taxable, GST-free or private.
Option C: A registered tax or BAS agent
A registered agent can prepare and lodge the BAS, explain classification issues and help with adjustments. Give the agent complete records, including private-use information and invoices that may affect credits. Confirm who is responsible for final review, payment and keeping the lodgment evidence.
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Paper lodgment remains an available channel where the issued BAS permits it. Enter the figures exactly as requested, sign where required and allow postal time before the due date.
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Nil BAS by phone
If there is nothing to report for the period, Australian Government business guidance lists phone lodgment for a nil BAS. Use that route only when the BAS is genuinely nil and follow the current instructions for the service.
8. Pay the amount shown or manage a credit
Lodging and paying are separate actions. If the BAS produces an amount payable, arrange payment by the displayed due date and retain the payment reference. If the BAS produces a credit or refund, check that the ATO account has no outstanding amount that will be offset and monitor the outcome in the relevant online service.
For a quarterly BAS, use the actual due date printed on the form even when the standard calendar dates appear to apply. Late lodgment or payment can create penalties or interest, so contact the Australian Taxation Office promptly if a deadline cannot be met.
9. Correct an error after lodging
Act when you discover the problem
Do not leave an incorrect BAS unaddressed. Gather the original BAS, the transaction documents, the amount of the error and the period in which it occurred. Then determine whether the issue is an error in the lodged figures or a later event that changes an earlier transaction.
Correcting on a later BAS
Some errors can be corrected on a later BAS, subject to the Australian Taxation Office’s limits and conditions. The correction should be clearly supported by your records and entered at the appropriate label for the current period.
Adjustments for later events
A refund, credit note or other event occurring after the original BAS may require an adjustment rather than an error correction. Follow the current ATO instructions for the specific transaction and keep the documentation showing why the adjustment was made.
Get help for complex corrections
Seek guidance from the Australian Taxation Office or a registered tax or BAS agent when the error involves several periods, large amounts, mixed private and business use, assets, uncertain GST treatment or a change in registration status.
How to choose a filing route
| Route | Best fit | Advantages | Watch-outs |
|---|---|---|---|
| ATO online services | A business with a straightforward BAS and organised records | Direct submission without buying or configuring software | You remain responsible for classification, calculations, deadlines and corrections. |
| SBR-enabled software | A business already keeping digital books and reconciliations | Can reduce re-keying and transmit data electronically | Incorrect setup or coding can flow into the BAS; review every field. |
| Registered tax or BAS agent | Complex transactions, limited time or uncertainty about obligations | Professional preparation and help with adjustments | Provide complete records and confirm the agent’s lodgment and payment responsibilities. |
| Paper | A business that prefers or needs a paper process | No online setup required | Manual entry and postal delivery add opportunities for errors and delay. |
Paid software is not mandatory for a simple BAS. Choose a channel based on your transaction complexity, existing record system, filing effort and access to a registered agent.
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A practical pre-lodgment checklist
- Confirm the entity, GST registration status, reporting period and BAS due date.
- Reconcile sales, purchases, bank activity and payment-platform records.
- Separate taxable, GST-free and differently treated sales.
- Check valid tax invoices for credit claims.
- Remove private-use amounts and document mixed-use apportionments.
- Calculate GST-inclusive amounts by dividing by 11 where the purchase is eligible.
- Confirm whether Simpler BAS or full reporting applies.
- Review G1, 1A, 1B and any other required labels against your records.
- Lodge through the chosen channel and save the confirmation.
- Pay the balance or monitor the credit by the date shown on the BAS.
Common mistakes and how to avoid them
Applying 10% to every transaction
GST treatment depends on the supply. Review GST-free and other categories instead of multiplying every sale by 10%.
Dividing a GST-inclusive amount by 10
The GST component of an eligible GST-inclusive amount is generally the total divided by 11. Dividing by 10 overstates the GST component.
Claiming private expenses
GST credits generally relate to business-use purchases. Exclude private spending and apportion mixed-use costs.
Lodging on a remembered quarterly date
Quarterly dates are usual rather than universal. Use the due date printed on your BAS and account for the next-business-day rule.
Assuming software is compulsory
You can generally lodge online, through SBR-enabled software, with a registered agent or on paper. Software is a convenience, not an automatic requirement.
Ignoring a nil period
A period with no reportable activity still requires the appropriate nil BAS action. Phone lodgment may be available for a nil BAS; follow the current instructions.
When professional or ATO help is sensible
Ask the Australian Taxation Office or a registered tax or BAS agent for help when you are unsure whether registration is required, your business has mixed private and business use, a transaction is unusually classified, you have crossed a turnover threshold, you need to correct several BAS periods or you cannot reconcile the figures. Keep preparing the source records yourself even when an agent lodges the form; the agent can only work with the information supplied.
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