BAS and GST tips

Record keeping

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Keeping good records helps you stay on top of your business. Remember to:

• keep records of all sales, fees, expenses, wages and other business costs, such as stocktake records and logbooks to substantiate motor vehicle claims
• reconcile sales with bank statements
• use the correct GST accounting method
• keep all your tax invoices and other GST records for 5 years
• consider using a digital record keeping system tailored to your business type – many systems help you to streamline your administration tasks
• use our Record keeping evaluation tool to help you assess how well you're keeping your records.

Invoices

With invoicing, remember to:

• check GST is included on tax invoices you issue for sales
• only claim GST credits if you have tax invoices for purchases of $82.50 (including GST) or more
• make sure you only count invoices once.

If a business doesn't quote its Australian business number to you when supplying you with goods or services, you generally need to withhold the top rate of tax from the payment and pay it to us.

Avoid manual errors for GST

To avoid manual errors, it's a good idea to:

• check you are using the correct formulas to work out GST
• have a separate column for GST in your cash book
• make sure that column totals and row totals in your cashbooks are the same
• classify and enter transactions into your accounts payable and accounts receivable systems correctly.

GST credits

Remember to:

• only claim GST credits on the business portion of purchases for business and personal use
• use the discounted price when claiming GST credits for discounted purchases, even if the discount doesn't appear on the invoice
• claim GST credits up front for purchases under hire purchase agreements (entered into on or after 1 July 2012) if you account for GST on a cash basis
• claim GST credits on the Australian dollar value when claiming invoices in a foreign currency
• repay GST credits for relevant business assets you keep if your business changes or ceases.

You need to claim GST credits within the 4-year time limit for claiming GST credits.

When not to claim GST credits

Remember not to claim GST credits for:

• private expenses, such as food or entertainment
• purchases that don't include GST in the price, such as
  • bank fees and charges and stamp duty
  • GST-free items, like basic foods
• imported goods – unless you're the importer of the goods and import them solely or partly for your business
• purchases made between entities within a GST group. However, you can claim GST credits on purchases between GST branches.

See more about When to charge GST (and when not to).

Completing your BAS

When completing your BAS, make sure you:

• enter whole dollar amounts – leave cents out and don't round up to the next dollar
• enter each invoice once only
• account for your expenses and sales within the period you made or received payment if you account for GST on a cash basis
• only complete the fields that apply to you – if you have nothing to report, enter zero
• double check your figures and calculations if you're completing your BAS manually

Lodging and paying your BAS

• Most businesses that lodge their own BAS prepare and lodge online. If you lodge and pay quarterly, you may get extra time to pay if you lodge online or through a registered tax or BAS agentExternal Link.
• Online activity statements are generally available one week after the generation date. It may take up to 3 weeks to receive your activity statements if sent by post. If you can't find your BAS and you lodge
  • online, you can find your BAS under 'Not lodged' or 'History'
  • by paper, you need to contact us if you need a new form. You can't use a sample activity statement to lodge as it isn't unique to you.
• Adopting good cash flow habits will help your business. Consider setting aside GST, Pay as you go (PAYG) withholding and super from your cash flow so you have the funds available when it’s time to pay. 
• Lodging all your BAS before you lodge your tax return will help with reconciling your figures.
• The due date for lodging and paying is displayed on your BAS. Lodge and pay in full and on time to avoid penalties and interest charges. Contact us as soon as possible if you are finding it hard to lodge and pay on time.
• If the date falls on a weekend or public holiday, you can lodge and pay on the next working day.
• Use the right payment reference number (PRN), also referred to as an EFT code, when you pay us.
• If you have nothing to report ('nil' BAS), you still need to lodge a 'nil' BAS by the due date. You can do this online or through our automated phone service.

Refunds

If you are expecting a refund, to avoid delay:

• ensure your lodgments are up to date – we can’t process a refund until you have lodged all your outstanding BAS
• check your financial institution details are correct.

Fix a mistake or make an adjustment

Most mistakes relating to GST can be corrected in your current BAS. If you can't correct your mistake in the current BAS you will need to revise your original BAS. Examples of mistakes you can fix include, when you've:

• made a clerical error
• double counted some your purchases.

When you become aware of an adjustment you generally report it on your current BAS. Examples of when to make an adjustment include, where:

• the price of a sale or purchase changes
• goods are returned and the sale is cancelled.

Find out more about fixing BAS mistakes or making adjustments.

If you don't need to be registered anymore

If you've had nothing to report and have been lodging ‘nil’ BAS for a while, consider whether you should cancel your GST and other registrations. Cancelling your registration when you no longer need it (for example, if you're selling or closing your business) is not only required, it will also ensure you stop receiving further BAS.

However, make sure you’ve met all your tax and super lodgment, reporting and payment obligations before you cancel them. Find out more about cancelling your GST registration.