Running a small business in Australia comes with a long list of responsibilities—and for many business owners, BAS and GST sit high on the list of most confusing. What are they? Are they the same thing? And more importantly, how do you make sure you’re reporting and paying the right amount?
In this guide, we break down the difference between BAS vs GST and explain how a qualified accountant or registered BAS agent can help you stay compliant and avoid overpaying the ATO.
If you’re trying to understand your GST reporting obligations and how to correctly lodge your BAS statement, this article will give you the clarity you need to make informed decisions.
💵 What Is GST (Goods and Services Tax)?
GST is a 10% tax applied to most goods and services sold in Australia. As a business owner, if your annual turnover is $75,000 or more (or $150,000 for non-profits), you must register for GST.
🤢 GST Basics:
- Output GST: The GST you collect on sales
- Input GST: The GST you pay on business purchases
- You manage these amounts through your GST reporting in the BAS statement
❌ Not All Goods & Services Are Taxed Equally
- GST-Free: Fresh food, education, medical services
- Input-Taxed: Residential rent, some financial services (no GST credit claim)
💬 Common GST Obligations:
- Charging GST correctly on taxable supplies
- Issuing compliant tax invoices
- Claiming valid input tax credits
- Keeping records for at least 5 years
- Lodging accurate GST returns in Australia based on your business activity
📄 What Is a BAS Statement (Business Activity Statement)?
The BAS statement is a form submitted to the Australian Taxation Office (ATO) to report and pay:
- GST collected and paid
- PAYG withholding (employee tax)
- PAYG instalments (business owner tax)
- Fuel tax credits and fringe benefits tax (if applicable)
Your GST returns in Australia are lodged through this statement.
⏰ BAS Lodgement Frequency:
- Monthly: $20M+ turnover
- Quarterly: Most small businesses
- Annually: If turnover < $75k and voluntarily registered for GST
Lodging your BAS statement on time is essential to avoid ATO penalties and maintain business cash flow.
❓ BAS vs GST: What’s the Difference?
Many business owners confuse BAS and GST. While they’re closely related, they are not the same.
| Feature | GST | BAS Statement |
|---|---|---|
| What is it? | A tax on sales and purchases | A report submitted to the ATO |
| Applies to | Businesses registered for GST | All businesses with GST or PAYG obligations |
| How often? | Ongoing (on every transaction) | Monthly, quarterly or annually |
| What does it include? | 10% on taxable sales, GST credits | GST + PAYG + Super + others |
🤔 Why It’s Confusing:
- GST is just one component of your BAS statement
- You report your GST obligations through your GST returns in Australia
- Some items (like input-taxed sales) affect GST but don’t appear clearly on BAS
⚠️ Common BAS and GST Mistakes That Cost You Money
Many businesses try to handle GST reporting and BAS lodgement themselves using DIY software or internal bookkeepers. But even minor errors can lead to overpayments or ATO penalties.
📉 Top GST Mistakes:
- Claiming GST on purchases not entitled to GST credits
- Charging GST on GST-free items
- Not reporting all taxable sales
- Not understanding the difference between input-taxed and GST-free
🔦 Common BAS Mistakes:
- Missing PAYG obligations (e.g., not including employee tax withheld)
- Incorrectly reporting cash vs accrual accounting
- Misclassifying expenses
- Late lodgement or failing to lodge
These mistakes can add up to thousands of dollars in lost credits or ATO fines.
🤝 How an Accountant Helps With Both GST and BAS
This is where a professional accountant or registered BAS agent can save your business significant time, money, and stress.
🧰 What a BAS Accountant Can Do:
- Ensure correct GST registration and setup
- Accurately track GST reporting on income and expenses
- Lodge your BAS statement on time and with full compliance
- Reconcile accounts and identify discrepancies
- Communicate with the ATO on your behalf
- Amend past BAS if mistakes are found
An experienced BAS accountant makes sure you don’t overpay, miss deductions, or fall foul of ATO reporting rules.
“I thought I was claiming GST correctly—until my BAS accountant found I’d been underclaiming $800/quarter for the past year.”
🚀 Why You Should Use a Registered BAS Agent
Only registered BAS agents are legally allowed to charge for BAS services. Choosing an unqualified bookkeeper could cost you.
📄 BAS Accountant Qualifications:
- Certificate IV in Accounting and Bookkeeping
- 1,400+ hours of supervised experience
- Professional Indemnity Insurance
- Ongoing Professional Development (CPE)
You can check registration at TPB.gov.au.
📈 Key Benefits:
- Legally authorised to lodge BAS
- Qualified to offer GST reporting and PAYG advice
- Can liaise directly with the ATO
- Must comply with a strict Code of Conduct
If you’re searching online, try keywords like BAS agent near me or use a verified directory like Finistry.com.au to connect with trusted professionals.
🧳 How to Choose the Right BAS Accountant
Selecting the right person for your GST returns in Australia and BAS isn’t just about qualifications. You need someone reliable, communicative, and aligned with your business goals.
🌍 Key Questions to Ask:
- Are you a registered BAS agent with the TPB?
- What types of businesses do you work with?
- What software do you use (e.g., Xero, MYOB, QuickBooks)?
- Do you offer fixed-price BAS packages?
- Can you help with overdue or amended BAS?
- What’s your typical turnaround time for BAS lodgement?
💰 Pricing Guide:
- Quarterly BAS: $150 – $400
- Monthly BAS (with payroll): $200 – $600/month
- One-off catch-up BAS: $200 – $500 depending on complexity
Use Finistry.com.au to compare BAS accountants by service, industry focus, and reviews.
✅ Why a Qualified Accountant Can Save You Money
It might seem like hiring a BAS accountant is an extra expense—but the value they deliver can far exceed the cost.
💸 How They Save You Money:
- Identify missing GST input credits
- Prevent ATO interest and penalty fees
- Improve cash flow forecasting
- Ensure payroll and super compliance
- Catch costly classification errors early
“After switching to a registered BAS agent, we recovered $2,000 in misclassified GST credits from the past two quarters.”
When you choose a BAS accountant with experience in your industry, you’re not just ticking boxes—you’re investing in the financial health of your business.
❓ Frequently Asked Questions
Is GST part of BAS?
Yes. GST is one of the key components reported in your BAS statement. You manage your GST returns in Australia through this form.
What happens if I lodge my BAS late?
The ATO may apply failure-to-lodge (FTL) penalties, interest charges, and in some cases trigger an audit or review.
What’s the difference between a BAS agent and a tax agent?
- BAS agents: Handle GST reporting, PAYG, and payroll via BAS
- Tax agents: Can also prepare and lodge income tax returns
Some accountants are registered as both.
Can I lodge my own BAS?
Yes. You can lodge your BAS through the ATO Business Portal or your accounting software. However, if you’re not confident in GST reporting, it’s recommended to hire a registered BAS agent.
How do I find a BAS agent near me?
Search the TPB register, ask for referrals, or use a business directory like Finistry.com.au to find reviewed and trusted BAS professionals in your area.
📍 Conclusion: BAS and GST Are Too Important to Get Wrong
Understanding the difference between BAS vs GST is crucial for any business owner—but you don’t have to manage it alone. A qualified, registered BAS accountant will help you:
- Report your GST returns in Australia accurately
- Avoid overpayments and missed deductions
- Keep your BAS statement compliant and on time
- Communicate with the ATO on your behalf
If you’re ready to simplify your compliance and stop overpaying tax, it’s time to choose a BAS accountant you can trust.
🔗 Use Finistry.com.au to find a registered BAS agent near you today and gain confidence in your GST reporting and lodgement process.
Need Help With BAS and GST?
Find experienced, registered BAS accountants on Finistry.com.au who understand your industry and can save you time and money every quarter.
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