What is a BAS for sole traders in Australia?

A BAS (Business Activity Statement) is a form submitted to the ATO by sole traders registered for GST. It reports GST collected, GST credits, PAYG instalments, and other taxes.

When is a sole trader required to lodge a BAS?

A sole trader must lodge a BAS if they are registered for GST. Most sole traders lodge quarterly, with due dates at the end of each following month.

What should be included in a BAS for a sole trader?

A BAS typically includes GST on income and expenses, PAYG instalments, PAYG withholding (if you have employees), and fuel tax credits if applicable.

Can I lodge my BAS through accounting software?

Yes. You can lodge your BAS directly to the ATO using software like Xero, MYOB, or QuickBooks Online, or through the ATO portal or your registered agent.

What happens if I lodge my BAS late?

Lodging your BAS late can result in penalties and interest from the ATO. It’s important to meet your reporting deadlines or seek help from a BAS agent.

Sole Trader BAS Lodgement Checklist (Australia 2025)

Sue Cao
1 day ago
2 min read

A Step-by-Step Guide to Prepare, Report and Lodge Your BAS with the ATO

Lodging a Business Activity Statement (BAS) is a regular responsibility for Australian sole traders registered for GST. This checklist is designed to help sole traders accurately prepare and lodge their quarterly or monthly BAS returns, ensure ATO compliance, and avoid unnecessary penalties.

This guide is aligned with ATO BAS reporting standards, covering GST, PAYG instalments, and record-keeping for sole trader businesses.

📌 1. Understand Your BAS Lodgement Obligations

✔️ Confirm your BAS lodgement frequency (quarterly or monthly)✔️ Check lodgement and payment due dates on ATO portal or via your tax agent✔️ Ensure you are registered for GST (required if turnover > $75,000)✔️ Determine if you have PAYG instalments or PAYG withholding obligations✔️ Use myGov, business portal, or accounting software to access BAS forms

🔗 ATO BAS due dates

📌 2. Prepare and Reconcile Business Records

✔️ Ensure business transactions are up to date in your accounting system✔️ Reconcile bank accounts, sales, and purchases✔️ Verify correct GST coding on all income and expense items✔️ Review any capital purchases and asset acquisitions✔️ Check for non-business or private expenses (not claimable)

💡 Tip: Software like Xero, MYOB, or QuickBooks Online can generate BAS-ready reports.

📌 3. Accurately Calculate GST for Your BAS

✔️ Report GST on income (G1) and GST on purchases (G11)✔️ Enter amounts into 1A (GST owed) and 1B (GST credits claimed)✔️ Confirm GST-free and input-taxed items are excluded correctly✔️ Identify GST credits for business-related purchases✔️ Include adjustments for returned goods or cancelled invoices

🧾 For most sole traders, this is the core component of the BAS return.

📌 4. Report PAYG and Other BAS Items (If Applicable)

✔️ Report PAYG instalments (T1 – T8) as indicated by the ATO✔️ Lodge PAYG withholding if you have employees✔️ Claim Fuel Tax Credits if you operate eligible business vehicles✔️ Report GST on exports, if you sell goods overseas✔️ Identify any Luxury Car Tax (LCT) or Wine Equalisation Tax (WET) obligations

📎 Note: These sections appear only if you're registered or required to report them.

📌 5. Lodge and Pay Your BAS On Time

✔️ Lodge BAS via:

ATO online services
Your registered tax or BAS agent
Accounting software connected to ATO

✔️ Payment methods: BPAY, EFT, credit card, or direct debit✔️ Keep a PDF copy or confirmation number for your records✔️ Consider setting calendar reminders or automation for future lodgements

🚨 Missing a BAS deadline can trigger ATO penalties and interest charges.

📌 6. Retain Required Records for Audit Compliance

✔️ Tax invoices and receipts✔️ Accounting reports (BAS summary, general ledger)✔️ Fuel receipts (if claiming credits)✔️ Employee PAYG reports (if applicable)✔️ Records of all BAS lodgements and ATO correspondence

🗃️ ATO requires that sole traders retain these for five years minimum.

✅ Conclusion

Staying on top of your BAS obligations as a sole trader in Australia is vital to maintaining good standing with the ATO. This checklist equips you with everything you need to lodge with confidence, avoid errors, and remain compliant. For peace of mind, consider engaging a registered BAS agent or accountant to review your lodgement.