Business Activity Statements (BAS) are a core tax obligation for Australian businesses registered for GST. Every quarter (or monthly for larger businesses), you must report your GST collected, GST paid, PAYG withholding and PAYG instalments to the ATO. Getting your BAS right means accurate bookkeeping throughout the quarter - not a last-minute scramble.
Ensure all bank transactions are categorised in Xero with correct GST codes
Reconcile all bank accounts for the BAS period
Review the GST summary report in Xero to verify GST collected vs GST paid
Check PAYG withholding amounts match your payroll records
Review PAYG income tax instalment amount
Generate the BAS report in Xero or your accounting software
Lodge via the ATO Business Portal, myGov or through your tax agent
Pay any amount owing by the due date to avoid penalties
Businesses in Australia operating under the GST + BAS system must meet these compliance requirements set by ATO:
Lodging late - the ATO charges penalties starting at $313 per 28-day period
Incorrect GST codes on transactions leading to wrong GST amounts
Forgetting to include all bank accounts in the reconciliation
Not reconciling before generating the BAS report
Claiming GST on items that are GST-free (like basic food or exports)
Missing the payment deadline even when the lodgement is on time
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.
Quarterly BAS is due 28 days after the end of each quarter. Q1 (Jul-Sep) is due 28 October, Q2 (Oct-Dec) is due 28 February, Q3 (Jan-Mar) is due 28 April, and Q4 (Apr-Jun) is due 28 July. Monthly BAS is due on the 21st of the following month.
Yes. If you are registered for GST, you must lodge a BAS even if you had no sales or purchases during the period. You can lodge a nil BAS.
Yes. SortBooks suggests the right account and GST code for transactions through the quarter, and writes them back to Xero once you approve. On Growth and above you also get a quarterly GST estimate to check before you lodge. It's an estimate, so you or your BAS agent still prepare and lodge the BAS from Xero.
AI suggests, you approve, SortBooks updates Xero. Try it free for 14 days.