What is a BAS and Who Needs to Lodge One?
A Business Activity Statement (BAS) is a form submitted to the ATO to report and pay certain tax obligations. These obligations can include:
- Goods and Services Tax (GST)
- Pay as You Go (PAYG) instalments
- PAYG withholding
- Other taxes (which may be relatively less common for sole traders)
Do Sole Traders Have to Lodge a BAS?
Not every sole trader needs to lodge a BAS. You only need to submit one if your business is registered for GST or you have other reporting obligations.
You must register for GST if any of the following apply:
- Your GST turnover (gross income minus GST) is $75,000 or more in any 12-month period.
- You provide taxi, ride-sourcing, or limousine services as part of your business.
- You want to voluntarily register for GST to claim input tax credits.
If your turnover is below the threshold and you don’t fall into these categories, you are not required to lodge a BAS.
Tips to Stay on Top of BAS Obligations as a Sole Trader
- Keep invoices and receipts organised and up to date
- Use accounting software to track GST automatically
- Set calendar reminders for due dates
- Consider engaging a registered BAS agent to help you stay compliant
- Reconcile your accounts regularly so your BAS figures are accurate
Final Thoughts
Sole traders only need to lodge a BAS if they are registered for GST. If your turnover is under $75,000 and you haven’t voluntarily registered for GST, you won’t need to lodge a BAS — but you still must complete your income tax return.
When in doubt, check your GST registration and BAS lodgment obligations using the ATO’s Online Services, or speak to a qualified tax agent to make sure you’re meeting all of your requirements. Staying compliant saves you from unexpected penalties and gives you more time to focus on growing your business.
About Chan & Naylor
Since 1990, Chan & Naylor has partnered with business owners and property investors in managing their taxes and building a tax-effective wealth. Choosing Chan & Naylor means you’re not just selecting a service provider; you’re gaining a partner aligned with your financial goals. You’ll have access to a dedicated client manager supported by a team of accountants that specialises in business and property tax.
Disclaimer
This article serves as general information only and may not account for the unique circumstances of individual readers. For personalised and strategic solutions tailored to your specific situation, we invite you to seek professional advice from Chan & Naylor. Our highly experienced team is dedicated to helping you navigate the complexities of Australian taxation, ensuring that your financial strategies align with the latest regulations. Contact us today to embark on a path of informed and customised tax planning for your property investments.
