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    BAS Explained

    5 min read·Reviewed June 2026
    By Scott JonesFirst published 6 June 2026
    Tax & ATO
    Australia-wide

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    Your Business Activity Statement (BAS) is how you report GST — and, if you have them, PAYG withholding and PAYG instalments — to the ATO. Most tradies lodge quarterly. Reconciled and lodged on time it is a 20-minute job; leave it and the penalties start on their own. Here is the whole thing: the labels, the dates (and the agent trick that buys you weeks), the credits you can actually claim, and what late lodgement really costs.‍‌​‌‌‌​‌‌​​​‌​‌​​​​‌‌‌​‌‌​‌‌‌‌‌‌‍

    The labels you fill in

    Under $10M turnover you can use the simplified BAS, but these are the fields that matter:

    LabelWhat goes there
    G1Total sales for the quarter, incl GST (labour + materials invoiced)
    G10Capital purchases with GST (tools, machinery, a work vehicle)
    G11Non-capital purchases with GST (materials, fuel, subbies, mobile, accounting)
    1AGST you collected on sales
    1BGST credits on your purchases (from G10 + G11)
    W1 / W2Wages paid / PAYG tax withheld — only if you employ
    T7 / T8Your PAYG income-tax instalment / a variation to it
    9The net amount — GST + PAYG combined into what you pay or get back

    Net GST is simply 1A minus 1B.

    Quarterly due dates

    • Q1 (Jul–Sep): 28 October
    • Q2 (Oct–Dec): 28 February — the December quarter gets an extra month. This is NOT 28 January (that is the super date); mixing them up is the classic mistake.
    • Q3 (Jan–Mar): 28 April
    • Q4 (Apr–Jun): 28 July

    (Falls on a weekend or public holiday? The next business day.)

    The agent extension is worth knowing: lodging through a registered BAS or tax agent generally buys roughly two extra weeks on the September and June quarters and up to four on the December and March quarters. For a tradie juggling cashflow, that breathing room alone can justify an agent.

    The GST credits you can actually claim

    You can claim the full GST credit on something bought 100% for the business where you hold a valid tax invoice: building materials and consumables, subbie services that include GST, tools used only on site, public-liability and tools insurance, business-only mobile and software, and your accounting/BAS fees.

    The apportionment trap — your ute. A dual-cab used on site during the week and for the school run on weekends is dual-purpose, so you claim only the business-use percentage. Worked example: the ute is 70% business per your logbook; you spend $1,100 on fuel including $100 GST → you claim $70, not $100, at G11. Same logic for home-office running costs and a mixed-use mobile.

    No credit on: GST-free purchases or anything from a supplier who is not registered; private expenses; and input-taxed acquisitions (some financial services, residential-rent-related costs).

    Cash vs accrual

    This decides when GST lands on your BAS — and for a tradie on long payment terms it matters a lot (a $22k progress claim can owe GST a quarter before you are paid). It is covered in full in GST for Tradies.

    What late lodgement costs

    Two separate hits:

    Failure-to-Lodge (FTL) penalty — 1 penalty unit for every 28 days (or part) the BAS is late, capped at 5 units. At the current $330 unit that is up to $1,650 per BAS:

    • 1–28 days late: ~$330 (1 unit)
    • 29–56 days: ~$660 (2 units)
    • over 112 days: the $1,650 cap (5 units)

    General Interest Charge (GIC) — on any unpaid BAS amount, compounding daily at a variable rate (recently around 11% a year). And since 1 July 2025, GIC is no longer tax-deductible, so it bites harder than it used to.

    The rule that saves you money: lodging and paying are separate. Lodge on time even if you cannot pay — that stops the FTL penalty — then set up a payment plan for the amount owing. See Can't Pay the ATO?.

    Common mistakes

    • Mixing up Q2 BAS (28 Feb) with the super date (28 Jan).
    • Claiming 100% GST on a part-private ute — apportion it to the logbook percentage.
    • Claiming credits with no tax invoice, or from a non-registered supplier.
    • Not lodging because you cannot pay — that adds an FTL penalty on top of the debt.
    • Forgetting GIC is now non-deductible — let it run and it costs more than it looks.

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