A BAS is not an extra tax and it is not your income tax return. It is the regular form where you report the Goods and Services Tax (GST) you collected, claim back the GST you paid, and pay any PAYG instalment in one place. This guide shows what goes on it, when it is due, and how a freelancer quarter adds up.
Rates last reviewed: October 2026. Australian financial year 2026-27, checked against the Australian Taxation Office (ATO) guidance on quarterly GST reporting, the ATO BAS due dates page, and the ATO guidance on registering for GST.
Search intent: you are registered for GST, or about to be, and need to know what a BAS is, whether you must lodge one, and how to complete it without guessing.
What is a BAS?
A Business Activity Statement, or BAS, is the form Australian businesses lodge with the ATO to report and pay several obligations together: GST collected minus GST credits, PAYG instalments toward income tax, PAYG withholding if you pay staff, and any fuel tax credits or other taxes that apply to you.
That bundling is the point: one statement for one period, usually a quarter, with a single amount payable or a single refund. Your BAS does not replace your annual income tax return: the return settles your income tax for the year, and instalments paid through your BAS are credited against it.
Once you register for GST, the ATO sends you a BAS for each period. The form only shows sections matching your registrations, so a solo freelancer sees far fewer labels than the full form suggests. Blank sections are normal, not a sign you have the wrong statement.
Do freelancers have to lodge a BAS?
You must lodge a BAS if you are registered for GST. GST registration is required once your GST turnover reaches A$75,000 in a 12-month period, or A$150,000 for a non-profit, and you must register within 21 days of reaching it. Below the threshold registration is voluntary, but once you register, BAS lodgement follows.
GST turnover means gross business income, not profit, tested on the current month plus the previous 11 months and on what you expect ahead. A freelancer who bills A$80,000 and keeps A$45,000 after expenses is still over the threshold. Taxi and ride-sourcing drivers must register regardless of turnover.
Having an ABN alone does not trigger a BAS. Many sole traders hold an ABN, earn under the threshold, stay unregistered, and never lodge one: their tax is handled in their personal return. Our guide on Australia GST and when freelancers must register covers the threshold tests in full.
Tip: Check your rolling 12-month turnover monthly once you pass A$60,000. The 21-day window is short, and backdated registration can leave you owing GST on invoices you never charged it on.
What goes on a BAS for a typical freelancer?
For a typical GST-registered freelancer, a BAS has three parts: the GST section, a PAYG instalment section if the ATO has entered you into instalments, and a summary that nets everything into one payable or refund. PAYG withholding and other taxes only appear if they apply to you.
Most freelancers are on Simpler BAS. If your GST turnover is less than A$10 million, the ATO requires the Simpler BAS method, and you report just three GST labels:
| Label | What it means | What to enter |
|---|---|---|
| G1 | Total sales | All sales, including GST-free and export sales. State whether the figure includes GST. Most freelancers report it GST-inclusive. |
| 1A | GST on sales | The GST you collected. On GST-inclusive taxable sales, this is one-eleventh of the total. |
| 1B | GST on purchases | The GST credits on your business purchases. Only GST you actually paid, and only the business-use share. |
Businesses with GST turnover of A$10 million or more use the full reporting method and also complete G2 (export sales), G3 (other GST-free sales), G10 (capital purchases) and G11 (non-capital purchases). Other labels cover fringe benefits tax, luxury car tax and wine equalisation tax where they apply.
Two rules protect your 1B claim. You need a valid tax invoice for purchases of A$82.50 or more including GST: see how to invoice as a sole trader in Australia. And a purchase from a supplier who is not GST-registered contains no GST, so there is nothing to claim. Check the tax invoice shows GST before you count it.
The PAYG section uses different labels. T1 is your instalment income and T2 is the instalment rate the ATO gives you: instalment = T1 multiplied by T2, unless the ATO gives you a fixed amount instead. Either way it is a prepayment of income tax, not an extra tax. LancerBill’s GST calculator handles the one-eleventh extraction, and you can model profit with the profit margin calculator.
Worked example: one freelancer quarter, step by step
Assumptions, stated in full: Australia, quarter 1 of 2026-27 (1 July to 30 September 2026). A freelance designer in Brisbane, sole trader with an ABN, GST-registered, on Simpler BAS and the cash accounting basis, with no staff, so no PAYG withholding. She is in PAYG instalments and pays by instalment rate.
Her sales. Clients paid her A$33,000 in the quarter, all taxable services, all GST-inclusive.
- G1, total sales: A$33,000.
- 1A, GST on sales: 33,000 / 11 = A$3,000. Her sales excluding GST were A$30,000, and the GST she collected is one-eleventh of the inclusive total, not 10 percent of the total.
Her purchases. Software subscriptions of A$1,100 including GST, a laptop of A$2,200 including GST, and studio supplies of A$550 including GST, all for business use, with tax invoices held.
- GST in purchases: 1,100 / 11 = A$100, plus 2,200 / 11 = A$200, plus 550 / 11 = A$50.
- 1B, GST on purchases: 100 + 200 + 50 = A$350.
- Net GST: 1A minus 1B = 3,000 – 350 = A$2,650 payable.
Her PAYG instalment. Her instalment income T1 is her income excluding GST, A$30,000. The ATO instalment rate T2 on her statement is 6 percent. Instalment = 30,000 x 0.06 = A$1,800.
Her BAS total. Net GST A$2,650 plus PAYG instalment A$1,800 = A$4,450 payable for the quarter. Report whole dollars, rounded down, with no cents. If her GST credits had exceeded her GST on sales, the GST part would have been a refund, reducing the total instead.
Notice what funded this bill. She moved one-eleventh of every payment into a GST pot as it arrived, A$3,000 across the quarter, which covered the A$2,650 net GST after credits. Her income tax pot covered the A$1,800 instalment. That two-pot habit is the system in our guide on how much tax an Australian sole trader should set aside. Raise invoices with LancerBill’s invoice generator so the GST on each sale is clear from the start.
Watch out: the most common G1 error is entering your payout or banked amount after platform fees instead of your total sales. G1 is everything you sold, before fees and deductions. Fees are purchases, not a reduction in sales.
When is your BAS due?
There is no single universal BAS deadline. Most freelancers lodge quarterly, due on the 28th of the month after the quarter ends, except the December quarter, which is due on 28 February. Monthly statements are due on the 21st of the following month, and the date printed on your own statement is the one that counts.
| Quarter | Period covered | Standard due date |
|---|---|---|
| Quarter 1 | 1 July to 30 September | 28 October |
| Quarter 2 | 1 October to 31 December | 28 February |
| Quarter 3 | 1 January to 31 March | 28 April |
| Quarter 4 | 1 April to 30 June | 28 July |
Quarterly is the default if your GST turnover is less than A$20 million and the ATO has not told you to report monthly. Monthly is required at A$20 million or more, and smaller businesses can choose it. Annual GST reporting is only for voluntarily registered businesses under the threshold, with the return due with your income tax return.
Two concessions change the date for many freelancers. If you lodge your quarterly BAS online yourself, you may be eligible for an extra two weeks for quarters 1, 3 and 4. Quarter 2 gets no extra time because its February date already includes an extension. A registered tax or BAS agent can give you more time, provided you are on their client list in time. Always work to the date on your statement or in your ATO online account. If a due date falls on a weekend or public holiday, you have until the next business day.
Even a quarter with no activity needs a statement: lodge a nil BAS by the due date. Lodging late can attract a failure to lodge penalty, charged per 28-day period overdue, and any amount owing accrues the general interest charge from the original due date. Lodging on time, even if you need a payment arrangement, is far better than lodging late with the money ready.
How do you lodge a BAS, and which accounting basis applies?
You lodge online through ATO Online services for business or myGov linked to the ATO, through accounting software, or through a registered tax or BAS agent. Online lodgement is the standard route for freelancers, and it can carry the two-week concession described above.
Before the numbers, one choice decides which quarter a sale belongs in: your GST accounting basis, chosen when you registered.
| Basis | When a sale counts | When a purchase counts | Often suits |
|---|---|---|---|
| Cash | In the quarter you are paid | In the quarter you pay | Solo freelancers with late-paying clients, because GST follows the bank account |
| Accruals (non-cash) | In the quarter you invoice, or are paid, whichever is first | In the quarter you receive the invoice, or pay, whichever is first | Businesses that invoice on terms and want BAS to match their accounts |
A practical routine removes most of the panic. Reconcile weekly, even if it is only 15 minutes: match payments to invoices, file tax invoices for purchases over the A$82.50 threshold, and move the GST portion aside. At quarter end, total sales and purchases on your accounting basis, run the one-eleventh check, and compare 1A and 1B against the previous quarter. A figure that jumps without reason is usually a coding error. Our guide on how to calculate GST backwards shows the fractions for Australia and other GST countries.
Rule of thumb: your BAS should be a summary of records you already keep, not a reconstruction job. If lodging takes a weekend, the fix is the weekly routine.
What mistakes make BAS feel harder than it is?
The same five mistakes cause most freelancer BAS stress: using net payouts at G1, claiming GST that was never charged, mixing personal and business spending, reporting in the wrong quarter, and treating collected GST as your own spendable income until the due date arrives.
- Claiming GST on everything. Purchases from unregistered suppliers and the private-use share of mixed expenses carry no claimable GST, or only a partial one.
- Missing the tax invoice. For purchases of A$82.50 or more including GST, no valid tax invoice generally means no credit in that period. Ask at the time, not at quarter end.
- Wrong quarter on accruals. An invoice issued on 30 September and paid in October belongs in the September quarter on accruals, but the December quarter on cash. Know your basis before you total anything.
- Forgetting the PAYG part. A BAS total is often larger than net GST alone because the PAYG instalment sits in the same summary. Budget for the combined figure.
- Skipping a nil quarter. No sales does not mean no BAS. Lodge the nil statement on time.
Key takeaways
- A BAS bundles GST, PAYG instalments and any PAYG withholding into one statement for one period. It does not replace your annual income tax return.
- You lodge a BAS because you are registered for GST. Registration is required within 21 days once GST turnover, which is gross income, not profit, reaches A$75,000.
- On Simpler BAS, which applies under A$10 million of GST turnover, you report only G1, 1A and 1B. Net GST is 1A minus 1B, and GST in an inclusive price is one-eleventh.
- Quarterly BAS are due 28 October, 28 February, 28 April and 28 July, but online lodgement and agents can move your date. The date on your statement is the one that counts.
- Your BAS total can exceed your net GST because a PAYG instalment is added in the same summary. Fund both from separate pots as you are paid.
- Lodge every statement, including a nil BAS, on time. A weekly 15-minute reconciliation turns lodgement into a summary, not a reconstruction.
Frequently asked questions
What is the difference between a BAS and a tax return?
A BAS reports and pays GST, PAYG instalments and withholding during the year, usually quarterly. Your income tax return is annual and settles your total income tax. Instalments paid through your BAS are credited against that tax, so they are prepayments, not a second tax.
Do I need to lodge a BAS if I had no income this quarter?
Yes, if you are GST-registered or required to lodge. Lodge a nil BAS by the due date, reporting zero at your labels. Skipping a quiet quarter can still attract a failure to lodge penalty, even when nothing is payable.
How is GST worked out on a BAS?
On Simpler BAS you report G1, 1A and 1B. GST is 10 percent on the GST-exclusive price, which is one-eleventh of a GST-inclusive price. Net GST payable is 1A minus 1B. If 1B is larger, the ATO refunds the difference, subject to any other amounts on the statement.
Can I lodge my BAS late if I use an agent?
A registered tax or BAS agent lodges under a program that often gives quarterly clients a later date than the standard 28th, provided you are on the agent’s client list before the original due date. It does not rescue a statement already overdue, and quarter 2 has no extra concession because its 28 February date is already extended.
What is Simpler BAS and am I on it?
Simpler BAS is the default reporting method if your GST turnover is less than A$10 million and you are not on GST instalments. You report only G1, 1A and 1B for GST, instead of the seven labels in the full method. Your statement shows only the labels you need, so a short GST section usually means you are on Simpler BAS.
Is the PAYG instalment on my BAS an extra tax?
No. A PAYG instalment is a prepayment toward your expected income tax for the year. It is calculated from your instalment income at T1 and the ATO rate at T2, or as a fixed ATO amount. When you lodge your tax return, the instalments you paid are credited against your assessed tax.
This guide is for general information only and is not financial, tax or legal advice.