Definition
A business activity statement, or BAS, is the regular statement GST-registered businesses lodge with the ATO covering GST, amounts withheld from wages, PAYG instalments and certain other obligations. It is usually lodged monthly or quarterly. Lenders often check BAS lodgements and may use BAS sales figures, so up-to-date lodgements make finance applications smoother.
For most GST-registered businesses, the BAS is the regular moment of truth with the ATO.
What it reports
Depending on your registrations, a BAS reports GST collected and claimed, PAYG withheld from wages, PAYG instalments on income and certain other taxes. The ATO’s BAS pages explain the requirements and due dates.
Why it affects cash flow
GST and PAYG withheld are collected over the period but paid in one amount. If that money has been used for other expenses, the BAS can cause a shortfall. A separate tax holding account prevents most problems; see our BAS cash planning guide.
BAS and finance
Lenders check lodgements and may use BAS figures. Up-to-date BAS is one of the simplest ways to speed up an application. If BAS has caught you short, make one enquiry.
Common questions
What should I do if the BAS amount is more than I have?
Still lodge by the due date, then talk to the ATO about a payment arrangement. Lodging keeps options open and matters for director penalty exposure.
Do lenders ask for BAS?
Often. Recent BAS can show sales reported to the ATO and confirm lodgements are current, and are central to many low doc loans.
Sources and further reading