🇦🇺Australia Tax Guide

BAS for Small Business - Australia

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.

Step-by-Step Process

1

Register for GST if your annual turnover exceeds $75,000 (or $150,000 for nonprofits)

2

Choose your BAS reporting frequency - quarterly suits most small businesses

3

Set up your accounting software (Xero) with correct GST codes

4

Categorise all transactions with the right GST treatment throughout the quarter

5

Reconcile bank accounts before the end of each BAS period

6

Use the Simpler BAS method if eligible (only report GST collected and paid)

7

Lodge and pay by the due date

Australia Compliance with ATO

Businesses in Australia operating under the GST + BAS system must meet these compliance requirements set by ATO:

Automatic GST categorisation (10% standard rate)
BAS-ready reports - lodge quarterly or monthly
Single Touch Payroll (STP) integration
ATO-compliant record keeping
ABN and TFN tracking
Superannuation obligation tracking

Common Mistakes to Avoid

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)

How SortBooks Automates This for Australia Businesses

SortBooks connects to your Xero account and handles GST + BAS compliance automatically. Every transaction is categorised with the correct tax treatment, bank feeds are reconciled in real-time and your ATO-ready reports are always up to date. No more last-minute scrambles or manual data entry.

Automated Categorisation

Every transaction gets the correct GST + BAS code automatically - 97%+ accuracy from day one.

ATO-Ready Reports

Generate compliant reports for ATO at any time - no reconciliation needed.

Deadline Reminders

Never miss a filing deadline. SortBooks tracks your obligations and reminds you in advance.

Frequently Asked Questions

Do I need to register for GST?

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.

What is the Simpler BAS?

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.

How much does SortBooks cost for small business BAS?

SortBooks starts at $49/month for the Starter plan. It automatically categorises transactions with correct GST codes, reconciles your bank feed and generates BAS-ready reports - saving you hours every quarter.

Automate your GST + BAS compliance with SortBooks

Join thousands of Australia businesses using AI to handle their bookkeeping and tax compliance.

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