Published: Feb 2025

‍

How to Lodge Your BAS Online in Australia: The Complete 2025 Guide

Business Activity Statement (BAS) lodgement strikes fear into many Australian business hearts, but it shouldn't. Over 2.1 million businesses lodge BAS returns quarterly, and 89% now use online methods. The Australian Taxation Office reports that businesses lodging online have 45% fewer errors and receive refunds 65% faster than paper submissions. Here's your complete guide to mastering online BAS lodgement.

‍

Understanding BAS: What You're Actually Lodging

Your BAS reports several key components to the ATO:

• Goods and Services Tax (GST) collected and paid
• Pay As You Go (PAYG) withholding from employee wages
• PAYG instalments for your own income tax
• Fringe Benefits Tax (FBT) if applicable
• Luxury Car Tax and Wine Equalisation Tax (if relevant)

‍

BAS Lodgement Obligations: Know Your Requirements

Quarterly BAS Lodgers (Most Common):

• Businesses with annual turnover under $20 million
• Lodge by 28th of the month following each quarter
• Quarters end: 30 September, 31 December, 31 March, 30 June

Monthly BAS Lodgers:

• Businesses with annual turnover over $20 million
• PAYG withholders with total withholding over $25,000 annually
• Lodge by 21st of the following month

Annual BAS Lodgers:

• Small businesses with simple affairs
• Annual turnover under $75,000 and not registered for GST
• Lodge with annual tax return

‍

‍

Preparing for Online BAS Lodgement: Essential Prerequisites

1. ATO Online Account Setup

• Australian Business Number (ABN)
• Tax File Number (TFN)
• myGov account linked to ATO online services
• Bank account details for refunds/payments

2. Required Information Gathering

• Sales records and GST collected
• Purchase records and GST paid
• Payroll records and PAYG withholding
• Bank statements and reconciliations
• Previous BAS for comparison

3. Record Accuracy Verification

• All transactions recorded and categorised
• Bank accounts reconciled
• GST calculations verified
• Employee payments and withholdings confirmed

‍

Step-by-Step Online BAS Lodgement Process

‍

Step 1: Access ATO Online Services

1. Log into myGov account
2. Select Australian Taxation Office
3. Navigate to "Business" section
4. Select "Activity Statements" then "Lodge"

Step 2: Select Correct BAS Period

• Verify the reporting period (quarter/month)
• Confirm due date
• Check for any prior outstanding returns

Step 3: Complete BAS Sections

Section A: GST Reporting

• G1: Total sales (including GST)
• 1A: GST on sales
• G10: Total purchases (including GST)
• 1B: GST on purchases
• 1C: Net GST amount (1A minus 1B)

Example Calculation:

• Total sales: $110,000 (including GST)
• GST on sales: $10,000
• Total purchases: $55,000 (including GST)
• GST on purchases: $5,000
• Net GST payable: $5,000

Use our free GST calculator here

Section B: PAYG Withholding

• 4: Total salary, wages, and other payments
• 5: Total amount withheld from payments

Section C: PAYG Instalments

• 5A: PAYG instalment amount
• 5B: Credit from previous instalments

Step 4: Review and Validate

• Check all figures against source records
• Verify calculations using ATO's built-in validation
• Compare with previous BAS periods for reasonableness
• Ensure bank account details are current

Step 5: Submit and Confirm

• Review declaration statement
• Submit electronically
• Save or print receipt number
• Note payment due date if amount owing

‍

Common BAS Lodgement Mistakes and How to Avoid Them

1. GST Calculation Errors

‍Mistake: Including GST-free sales in GST calculations

‍Solution: Maintain separate tracking for GST-free items (basic food, medical services, exports)

Use our free GST calculator here

2. Timing Differences

‍Mistake: Recording transactions in wrong BAS period

‍Solution: Use accrual accounting principles - record when transaction occurs, not when paid

3. PAYG Withholding Confusion

‍Mistake: Confusing employee withholding with contractor payments

‍Solution: Only include PAYG withheld from employees, not contractor invoices

4. Bank Account Errors

‍Mistake: Outdated bank details causing refund delays

‍Solution: Verify account details before lodging each BAS

‍

‍

‍

BAS Payment Options and Strategies

Electronic Payment Methods:

• BPAY through internet banking
• Credit card (surcharge applies: 0.42% Visa/Mastercard, 1.45% Amex)
• Direct debit arrangement
• Electronic Funds Transfer (EFT)

Payment Timing Strategies:

• Early payment for cash flow planning
• Payment plan arrangements for large amounts
• Offset credit balances against future liabilities

‍

Payment Planning Example: A retail business with $12,000 quarterly BAS liability:

• Sets aside $4,000 monthly in separate account
• Earns interest on funds before payment
• Avoids cash flow stress at payment time
• Annual interest earned: $240 (2% on average balance)

‍

Technology Tools for BAS Efficiency

Accounting Software Integration

‍Modern accounting software streamlines BAS preparation:

• Xero: Direct BAS lodgement from software
• MYOB: Integrated BAS reporting and lodgement
• QuickBooks: BAS preparation tools and export

Mobile Apps and Solutions

• ATO app for quick BAS access and lodgement
• Receipt scanning apps for expense tracking
• Bank feed integration for real-time transaction updates

Cloud-Based Advantages

• Access BAS information anywhere
• Real-time collaboration with bookkeepers/accountants
• Automatic backup and security
• Multi-user access with permission controls

‍

BAS Refunds: Maximising Your Cash Flow

Expediting Refund Processing

• Lodge electronically for faster processing
• Ensure bank details are current and verified
• Avoid errors that trigger manual review
• Lodge early in the lodgement period

Refund Timeline Expectations

• Electronic lodgement: 12-14 business days
• Paper lodgement: 6-8 weeks
• Complex returns requiring review: 4-6 weeks

Refund Optimisation Strategy:

‍A construction company receives average quarterly GST refunds of $15,000. By lodging early and maintaining accurate records, they consistently receive refunds within 10 business days, improving cash flow by having funds available 18 days earlier than late lodgers.

‍

Record Keeping for BAS Compliance

Essential Records to Maintain:

• All tax invoices and receipts
• Bank statements and deposit records
• Sales day books or cash register summaries
• Purchase day books and creditor summaries
• Payroll records and payment summaries

Digital Record Management

• Cloud storage for accessibility and backup
• Organised folder structures by BAS period
• Receipt scanning and digital filing
• Integration with accounting software

Retention Requirements:

• Five years from when transaction occurred
• Electronic records acceptable with proper backup
• Accessible format for ATO review if required

‍

Professional Support Options

When to Engage Professional Help:

• First-time BAS lodgement
• Complex business structures or multiple entities
• Large GST refund claims requiring substantiation
• ATO queries or audit concerns
• Significant business changes affecting BAS

Professional Service Options:

• Registered BAS agents for lodgement like Scale Suite
• Bookkeepers for ongoing BAS preparation
• Tax agents for complex compliance issues
• Chartered accountants for strategic advice

‍

Dealing with BAS Problems

Late Lodgement Recovery:

1. Lodge immediately to stop penalties accumulating
2. Contact ATO to explain circumstances
3. Request penalty remission if reasonable excuse exists
4. Arrange payment plan if unable to pay immediately

Dispute Resolution Process:

• Internal review request within 60 days
• Administrative Appeals Tribunal if unsatisfied
• Federal Court for complex legal issues

Amendment Process:

• Lodge amendment within four years
• Provide explanation for changes
• Pay additional amount or claim additional refund
• Expect potential ATO review for significant amendments

‍

BAS Lodgement Best Practices

Monthly Preparation Routine:

• Week 1: Reconcile bank accounts and update records
• Week 2: Review and categorise all transactions
• Week 3: Prepare draft BAS calculations
• Week 4: Final review and lodge by due date

‍

Quality Assurance Checklist:

‍□ All income recorded and GST calculated correctly - Use our free GST calculator here

□ All expenses recorded with appropriate GST treatment

□ Bank reconciliations completed and balanced

□ Payroll records accurate and PAYG calculated

□ Previous BAS comparison completed

□ Supporting documentation filed and accessible

‍

Continuous Improvement Strategies:

• Track lodgement timing and identify delays
• Monitor refund processing times
• Review error patterns and implement prevention
• Update processes based on ATO guidance changes

‍

Future of BAS Lodgement

Digital Transformation Trends:

• Real-time reporting capabilities
• Artificial intelligence for error detection
• Automated data transfer from business systems
• Enhanced mobile lodgement features

Preparing for Changes:

• Stay informed about ATO digital initiatives
• Invest in compatible accounting software
• Maintain flexible record-keeping systems
• Consider cloud-based solutions for scalability

‍

Online BAS lodgement transforms a compliance burden into an efficient business process. With proper preparation, understanding, and systems, BAS lodgement becomes a routine task that provides valuable insights into your business performance while maintaining compliance with Australian tax obligations. The key is preparation, accuracy, and leveraging technology to streamline the process.

‍

BAS Lodgement FAQ - Australia 2025

1. What is a BAS and why do I need to lodge it?
A Business Activity Statement (BAS) reports your GST, PAYG withholding, PAYG instalments, and other taxes to the ATO. Lodging BAS is mandatory for most Australian businesses to comply with tax obligations.

2. How often do I need to lodge my BAS?

• Most businesses with turnover under $20 million lodge quarterly (due 28th of the month after each quarter).
• Businesses with turnover over $20 million or large PAYG withholding lodge monthly (due 21st of following month).
• Small businesses with simple affairs and turnover under $75,000 lodge annually with their tax return.

3. How do I lodge my BAS online?
Log into your myGov account linked to the ATO, navigate to the “Activity Statements” section, select the correct BAS period, complete the required sections (GST, PAYG, etc.), review your entries, then submit electronically.

4. What information do I need to prepare before lodging?
Gather sales and purchase records, payroll and PAYG withholding details, bank statements, previous BAS returns, and ensure your records are accurate and reconciled.

5. What are common mistakes to avoid when lodging BAS?

• Including GST-free sales in GST calculations
• Recording transactions in the wrong BAS period
• Confusing employee PAYG withholding with contractor payments
• Using outdated bank account details for refunds

6. How can I pay my BAS liability?
Payment options include BPAY, credit card (with surcharge), direct debit, or EFT. Planning payments early can help manage cash flow.

7. Can accounting software help with BAS lodgement?
Yes. Many software platforms like Xero, MYOB, and QuickBooks offer integrated BAS preparation and lodgement features to streamline the process and reduce errors.

8. How soon will I get a refund if I’m owed one?
Online lodgement typically results in refunds within 12–14 business days, much faster than paper lodgements (6–8 weeks).

9. What records must I keep for BAS compliance?
Keep tax invoices, receipts, bank statements, sales and purchase summaries, payroll records, and digital backups for at least five years.

10. When should I seek professional help for BAS lodgement?
Consider engaging a BAS agent or accountant if it’s your first BAS, your business structure is complex, you have large refund claims, or if you face ATO audits or disputes.

11. What should I do if I lodge my BAS late?
Lodge immediately to minimise penalties, contact the ATO to explain, request penalty remission if you have a valid reason, and arrange a payment plan if necessary.

12. Can I amend a BAS after lodgement?
Yes, amendments can be lodged within four years if you need to correct errors or claim additional refunds.