BAS Compliance for Arborists: What You Need to Know

GST Registration and Optional Choices

If your annual turnover is $75,000 or more, you must be registered for GST. Once you hit that threshold, you have 21 days to register online via the ATO website. You can also choose to register voluntarily for GST and BAS even if your turnover is below the threshold—this can help with claiming fuel tax credits and managing cash flow.

Sole traders, partnerships and companies all follow the same registration rules. Once registered, you’ll be identified as registered for GST and will need to lodge your BAS on the schedule that suits your business.

BAS Lodgement Frequencies and Due Dates

Understanding when and how often to lodge your Business Activity Statement (BAS) is key to staying compliant with the Australian Taxation Office (ATO) and keeping your arborist business running smoothly. Here’s a clear breakdown of the options available for most arborist businesses.

Quarterly BAS

Most arborist businesses lodge quarterly BAS. Quarterly BAS lodgement due dates fall on the 28th day after the end of each quarter:

If you use a registered BAS agent or tax agent, you may get extended BAS lodgement due dates, often by up to a month, helping you lodge and pay on time without penalties.

Monthly BAS

Businesses with very high GST turnover or those preferring to report monthly must lodge monthly BAS by the 21st of the following month. Monthly reporting can help spread your GST, PAYG instalments and other payments over the year, avoiding large quarter-end payments and smoothing your cash flow.

Annual BAS

Some special cases, such as very small sole traders with voluntary registration, may be eligible to lodge an annual BAS or report annual GST through their tax return. Check the ATO website or talk to a tax professional for confirmation.

Essential Record-Keeping and Preparation

Good records are the foundation of accurate BAS preparation:

• Tax invoices and receipts showing GST paid or collected.

• Vehicle logbooks to claim the right fuel tax credits and GST credits.

• Equipment purchases records with clear GST breakdowns.

• PAYG withholding records for any staff or subcontractors.

• Daily job sheets noting services provided, location, equipment used and any variation from quotes.

You must keep records for at least five years. Digital accounting software can automate record-keeping, categorise transactions and generate your BAS statement, making BAS lodgement and BAS payment easier.

Managing Cash Flow and BAS Payments

Arborist businesses often face seasonal swings in income. To manage quarterly BAS payments:

• Set aside GST funds in a separate account when you receive payments.

• Claim fuel tax credits promptly on your BAS to reduce liabilities.

• Plan for PAYG instalments—these are pre-payments towards your annual income tax.

• Use accounting software to forecast BAS payments and track due dates.

Consider arranging a revolving business line of credit or maintaining a cash buffer equal to one quarter’s BAS payment to cover slow seasons.

Common BAS Compliance Challenges

Arborists face several common hurdles when it comes to BAS compliance but understanding and managing these can help keep your tree service business on track.

• Missing due dates: Late BAS lodgement due dates can trigger penalties and interest.

• Incorrect GST or fuel tax credit claims: Without proper invoices or logbooks, claims may be disallowed.

• PAYG withholding errors: Failing to withhold or report correctly can lead to extra tax liabilities.

• Mixed-use items: Apportioning vehicle or equipment use between business and personal must be documented.

A registered BAS agent can help you avoid these pitfalls, handle BAS lodgement, and ensure all obligations are met accurately and on time.

When to Call in a BAS Agent or Tax Professional

If BAS compliance feels overwhelming, a registered BAS agent or tax professional can:

• Lodge your BAS and manage BAS lodgement due dates.

• Help with cash flow planning and BAS preparation.

• Advise on PAYG instalments and other tax liabilities.

• Manage annual reporting and your tax return for sole traders and companies.

Typical fees range from $300 to $750 per quarter for BAS agent services, which can be money well spent to avoid penalties and free you to focus on tree work.

Technology Tools for BAS Compliance

Modern accounting software offers:

• Online services linked to bank feeds.

• Automated BAS statement generation.

• Mobile apps for capturing job receipts onsite.

• Fuel tax credit calculators and GST tracking.

• Integrated PAYG instalment planning.

Popular platforms like Xero, MYOB and QuickBooks all support BAS lodgement directly to the ATO, making it easier to lodge and pay without visiting the ATO website each period.

Best Practices for Long-Term Compliance

• Monthly reconciliation: Review transactions every month to avoid surprises at quarter end.

• Staff training: Make sure anyone handling invoices or payments knows how to record GST and fuel tax credits.

• Regular reviews: Check your BAS preparation processes at least annually or when there are changes in the financial year thresholds.

• Stay updated: Follow ATO updates on due dates, thresholds and any changes to GST, fuel tax or wine equalisation tax rules.

Conclusion

BAS compliance for arborists means knowing how to report and pay GST, fuel tax credits, PAYG instalments, and other obligations on time. This starts with understanding what a Business Activity Statement (BAS) is—a regular form you send to the Australian Taxation Office to cover things like GST, services tax, and fuel tax credits. Most businesses lodge their BAS quarterly, but some may need to report monthly if their turnover is high or if they choose to lodge monthly to help with cash flow.

To keep things simple, you need to keep clear records of all your income and expenses, especially for fuel tax credits and other business costs. Setting aside GST funds as you earn them makes it easier to pay your BAS when it’s due, whether you’re on a quarterly or monthly schedule. Using accounting software can help track your Pay As You Go obligations and remind you of the next business day to lodge or pay, so you don’t miss important due dates.

Calling in a registered BAS agent when things get busy or confusing can take the stress out of BAS lodgement and help you avoid penalties. Meeting your BAS obligations helps you stay on top of your business, manage your cash flow, and focus on what you do best—running your arborist business and looking after trees.