For small businesses in Australia, the BAS can feel overwhelming - especially if you are managing it alongside running your business. The good news is that small businesses with GST turnover under $10 million can use the simpler BAS form, which only requires reporting GST amounts and PAYG instalments. Understanding your obligations and using the right tools makes BAS manageable.
Register for GST if your annual turnover exceeds $75,000 (or $150,000 for nonprofits)
Choose your BAS reporting frequency - quarterly suits most small businesses
Set up your accounting software (Xero) with correct GST codes
Categorise all transactions with the right GST treatment throughout the quarter
Reconcile bank accounts before the end of each BAS period
Use the Simpler BAS method if eligible (only report GST collected and paid)
Lodge and pay by the due date
Businesses in Australia operating under the GST + BAS system must meet these compliance requirements set by ATO:
Not registering for GST when turnover exceeds the threshold
Using the wrong GST codes for different types of purchases
Mixing personal and business expenses in the same bank account
Not keeping tax invoices for purchases over $82.50 (including GST)
Forgetting to claim GST credits on business purchases
Over-claiming GST on items that are input-taxed (like residential rent)
SortBooks connects to your Xero account and finds transactions sitting in catch-all accounts. AI suggests the right account and tax code, learning from your own past coding. You approve it and SortBooks updates Xero. Reconciled transactions are locked by Xero, so those stay in SortBooks with an Open in Xero link.
AI suggests a category and GST + BAS code for each transaction. You approve it before anything changes in Xero.
Growth and above get a quarterly GST/VAT estimate to check before you lodge with ATO.
Ask about your P&L, cash and who owes you, using live Xero data. Every dollar figure is checked against Xero.
You must register for GST if your business has a GST turnover of $75,000 or more ($150,000 for nonprofits). You can voluntarily register if your turnover is below this threshold.
The Simpler BAS is a streamlined reporting option for small businesses. You only need to report total sales (G1), GST on sales (1A), and GST on purchases (1B). PAYG withholding is reported separately on the activity statement.
SortBooks starts at $24/month for the Solo plan. AI suggests the right account and GST code for your transactions, you approve, and SortBooks updates Xero. The quarterly GST estimate to check before you lodge comes with Growth ($49/month) and above.
AI suggests, you approve, SortBooks updates Xero. Try it free for 14 days.