Definition

A business activity statement (BAS) is a key document used by businesses in Australia for reporting and paying various taxes to the Australian Taxation Office (ATO).

What is a business activity statement?

A business activity statement serves as a comprehensive declaration of a business’s financial activities, primarily focusing on taxes related to sales and purchases. 

BAS serves as a centralised form for reporting several taxes. Each tax has its section on the BAS form:

• Goods and Services Tax (GST): A 10% tax on most goods and services in Australia. It requires businesses to report collected GST on sales and claim credits for GST paid on purchases. The BAS calculates the net GST liability or refund by reconciling these figures.
• PAYG withholding: Businesses must withhold tax from payments to employees, contractors, and others. The BAS includes sections for reporting total PAYG tax withheld.
• PAYG instalments: PAYG instalments are regular payments by businesses to cover expected income tax liability for the current financial year. The BAS has a section for reporting and paying them.
• Fringe Benefits Tax (FBT): If a business offers fringe benefits to employees or associates, it may owe FBT. The BAS has a section for reporting and paying this tax on non-cash benefits.
• Luxury Car Tax (LCT): LCT is a tax imposed on luxury cars. Businesses involved in the sale or importation of luxury cars must report and pay LCT on the BAS if applicable.

The frequency of BAS filling varies depending on the business’s revenue and other factors. Generally, businesses are required to file their BAS either monthly, quarterly, or annually.

Example of a business activity statement

ABC Retailers BAS for the quarter ended March 31, 2024

GST:

• Collected: $5,000
• Paid: $2,727.27
• Net payable: $2,272.73

PAYG withholding: $4,000

PAYG instalment: $2,000

FBT: $1,000

Total amount due: $9,272.73

This simplified version provides a snapshot of the key figures. In reality, BAS forms may contain additional sections and more detailed information