Complete Guide to BAS and GST Reporting in Australia for 2025
Staying on top of your Business Activity Statement (BAS) and Goods and Services Tax (GST) reporting is a key part of running a business in Australia. Many business owners find that understanding how to report and pay services tax GST, keep up with due dates, and manage business expenses can be overwhelming. This guide is here to make sense of BAS and GST reporting for the 2025 financial year, giving you practical steps to keep your business compliant and your records in good shape.
Who Needs to Register for GST and BAS?
Before you can start reporting, it’s important to know when GST registration is required. If your business’s GST turnover is $75,000 or more (or $150,000 for a non-profit organisation), you must register for GST. This registration means you’ll need to submit a business activity statement (BAS), report GST amounts, and pay GST to the ATO. For ride-sourcing drivers and taxi operators, registration is needed regardless of business size or total sales.
When you register, you’ll also need to consider other taxes that may apply, such as the wine equalisation tax, luxury car tax, and fuel tax credits. These can all be reported through your activity statement. If your aggregated turnover is less than $10 million, you may be eligible for Simpler BAS, which streamlines the reporting process.
If your business’s GST turnover falls below the threshold, you can cancel your GST registration. However, you must notify the ATO within 21 days if you stop trading or change your business structure. Cancelling GST registration also affects your ability to claim GST credits and may impact your eligibility for fuel tax credits.
Confused about your BAS and GST obligations?
Book a consultation to get clear, step-by-step guidance tailored to your business.
Understanding BAS Reporting Cycles and Key Dates
The way you report GST and other taxes depends on your business size, GST turnover, and the reporting period assigned by the ATO. The main options are monthly, quarterly, or annual reporting.
Monthly Reporting
Businesses with a GST turnover of $20 million or more, or those required by the ATO, must report monthly. This means you’ll need to lodge your BAS and pay GST by the 21st of each month. If a due date falls on a weekend or public holiday, you have until the next business day to lodge and pay.
Quarterly BAS
Most small businesses lodge a quarterly BAS. The reporting periods are the September quarter (July–September), October–December, January–March, and April–June. Each period has its own due date, and if you use a registered agent, you may have extra time to lodge.
Quarterly BAS lets you report and pay GST, pay as you go (PAYG) withholding, and other taxes in one activity statement. If you use a BAS agent or registered tax professional, you may get extra time to lodge.
Annual GST Return
If your GST turnover is below the threshold, you may choose to report GST annually. In this case, you’ll lodge an annual GST return, usually by 31 October after the end of the financial year, or by 28 February if you’re not required to lodge an income tax return. This option reduces paperwork but requires careful cash flow planning, as you’ll need to pay GST in one go.
To avoid penalties and keep your business compliant with the latest GST rules, read our article on GST Updates Australia.
How to Prepare and Lodge Your BAS
Lodging your BAS accurately is essential for compliance. You can lodge your BAS online through the ATO’s business portal, use SBR-enabled accounting software, or work with a registered agent or BAS agent. Sole traders can also use their myGov account to submit their activity statement.
When preparing your BAS, make sure you record all sales and purchases, including GST on sales and GST on purchases. Use the GST calculation worksheet if you need help working out your GST amounts. Include any fuel tax credits, wine equalisation tax, or luxury car tax if they apply. Check your GST credits and ensure you have valid tax invoices for all business expenses.
If you use the cash basis for GST reporting, you report GST when you receive payments and pay for purchases. This method is common for small businesses, as it helps with cash flow management.
Remember to keep your records up to date and reconcile your accounts each month. This makes it easier to lodge your BAS and reduces the risk of errors.
Common BAS and GST Mistakes (and How to Avoid Them)
Many businesses make similar mistakes when reporting GST and lodging their BAS. These include misclassifying GST-free or input-taxed sales and purchases, forgetting to claim GST credits for business expenses, using the wrong GST reporting method or tax period, missing due dates and incurring penalties, and not updating fuel tax credit calculations when rates change.
To avoid these issues, review your accounts regularly and use accounting software that integrates with the ATO. If you’re unsure, a BAS agent or registered tax professional can help you check your GST amounts and make sure you’re claiming everything you’re entitled to.
What’s New for BAS and GST Reporting in 2025?
The ATO has introduced a few updates for the 2025 financial year. Some small businesses identified as high-risk may be required to report monthly, even if their GST turnover is below $20 million. The GDP adjustment factor for GST instalments and PAYG instalments is now 4%, which may affect your quarterly payments. Fuel tax credit rates have increased, so check your software for the latest rates when you work out your GST and credits. The ATO is encouraging more businesses to use eInvoicing and SBR-enabled software for faster, more accurate BAS lodgment.
If your business is selected for a GST assurance review, you may need to provide additional information through a supplementary GST return. This helps the ATO ensure your reporting is accurate and up to date.
To avoid BAS errors, penalties, and ATO audits, read our article on Avoid Common Mistakes on BAS Lodgement. It covers the most frequent BAS mistakes—like incorrect GST reporting, misclassified transactions, missing deadlines, and poor recordkeeping—and provides practical tips to help you lodge accurately and on time in 2025
Tips for Streamlining Your BAS and GST Workflow
Managing your BAS and GST doesn’t have to be stressful. Use cloud-based accounting software to automate GST calculations and keep track of your total sales, purchases, and GST credits. Reconcile your accounts each month, so your BAS is ready to go at the end of the reporting period. Take advantage of Simpler BAS if your aggregated turnover is less than $10 million-this reduces the number of GST labels you need to complete. Set reminders for each due date and allow extra time if you’re lodging through a registered agent. Keep all tax invoices and receipts for business expenses in a secure, organised system.
If you’re ever unsure about your GST reporting method, how to report and pay, or which activity statement to use, reach out to a BAS agent or registered tax professional. They can help you lodge your BAS, claim the right GST credits, and stay on top of your obligations.
Conclusion: Confident BAS and GST Reporting for 2025
Reporting GST and lodging your BAS is a regular part of running a business in Australia. By understanding your reporting period, keeping accurate records, and using the right tools, you can manage your business activity statement BAS with confidence. Staying up to date with the latest changes from the Australian Taxation Office helps you avoid surprises and keeps your business on track.
Our team is here to support you-whether you need help with GST reporting, fuel tax credits, or working out your GST on sales and purchases. If you have questions about your BAS, GST, or any other tax matters, reach out to us for friendly, expert advice. Let’s make BAS and GST reporting a smooth part of your business journey.