BAS vs GST is one of the most common questions small business owners ask. Many people use the two terms as if they mean the same thing, but they do not. Understanding the difference helps you stay on top of your tax obligations and avoid late lodgement penalties.
In short, GST is a tax. BAS is the form you use to report it.
What is GST?
GST (Goods and Services Tax) is a 10% tax on most goods and services sold in Australia. If your business is registered for GST, you:
- Add GST to the price of what you sell. This is called GST collected.
- Can claim back the GST included in the price of most things you buy for the business. This is called a GST credit.
The difference between the two goes to the ATO, or comes back to you as a refund if your credits are higher.
What is a BAS?
BAS (Business Activity Statement) is the form you lodge with the ATO to report and pay your tax obligations. GST is only one part of it. Depending on your business, your BAS may also include:
- PAYG withholding: tax withheld from employee wages
- PAYG instalments: prepayments towards your income tax
- Other obligations, such as fringe benefits tax instalments
BAS vs GST at a glance
| GST | BAS | |
|---|---|---|
| What is it? | A 10% tax on most goods and services | A form used to report and pay tax |
| Who deals with it? | Businesses registered for GST | Businesses registered for GST or PAYG |
| What does it cover? | GST collected and GST credits | GST, PAYG withholding, PAYG instalments and more |
| How often? | Reported through your BAS | Monthly, quarterly or annually |
Do I need to register for GST?
You must register for GST if your business turnover is $75,000 or more in a 12-month period (the threshold is higher for non-profit organisations). Taxi and ride-sharing drivers must register regardless of turnover. If your turnover is below the threshold, registration is optional, but it can still make sense if you buy a lot of GST-inclusive items.
How often do I lodge a BAS?
Most small businesses lodge quarterly. Some lodge monthly, and a few lodge annually. Quarterly BAS is usually due on the 28th day of the month after the quarter ends. For example, the July to September 2026 quarter is due on 28 October 2026. Always check your exact dates on the ATO website or with your accountant, as some dates differ for the December quarter and for businesses lodging through a tax agent.
Common BAS and GST mistakes
- Mixing up GST-free and input-taxed sales. The rules are different, and they affect what you can claim.
- Claiming GST credits without a valid tax invoice.
- Missing the due date. Late lodgement can lead to penalties and interest.
- Spending the GST you collected. It belongs to the ATO, so set it aside in a separate account.
- Leaving bookkeeping until the last minute. Messy records make a BAS slow and error-prone.
Frequently asked questions
Is BAS the same as a tax return?
No. A BAS reports GST, PAYG and similar obligations during the year. A tax return reports your annual income tax.
Can I lodge a BAS if I am not registered for GST?
Yes. If you have PAYG withholding or instalments, you may still need to lodge a BAS even without GST.
What happens if I lodge my BAS late?
You may face a failure to lodge penalty, plus interest on any amount owing. If you are behind, lodge as soon as possible and speak to a registered tax agent.
How PremierOne can help
We help Melbourne small businesses with bookkeeping, GST, BAS preparation and lodgement, so you do not have to worry about due dates. If you are behind on your BAS or unsure whether you should be registered for GST, book a free 15-minute consultation with our Principal Accountant.