BAS for sole trader tradies: what it is, when it is due, and how to get it done in an hour

Do you need to lodge a BAS at all?

You must register for GST once your business turnover reaches $75,000 in a 12-month period, or as soon as you expect it to. You can also register voluntarily below that, which some tradies do so they can claim GST credits on tools and materials. Once registered, you lodge a BAS.

If you are not registered for GST and you have no PAYG instalments, you do not lodge a BAS. You still report your income on your annual tax return.

When is it due?

Most small businesses report quarterly. The standard due dates are:

• Quarter 1 (July to September): 28 October
• Quarter 2 (October to December): 28 February
• Quarter 3 (January to March): 28 April
• Quarter 4 (April to June): 28 July

If you lodge through a registered BAS or tax agent you usually get a few extra weeks. If a due date falls on a weekend or public holiday, it moves to the next business day. Check the exact dates for the current year on ato.gov.au, because they are the ones that count.

What the labels mean

Most sole traders use the simpler GST reporting method, which only asks for three numbers:

• G1: total sales for the quarter, including GST.
• 1A: the GST you collected on those sales. For standard sales this is one-eleventh of the GST-inclusive amount.
• 1B: the GST you paid on business purchases that you are claiming back, such as materials, fuel and tools.

The ATO works out what you owe (1A minus 1B) or refunds the difference. If you pay PAYG income tax instalments, there is a separate label for that on the same form, and the ATO tells you the amount or the rate to use.

What you need to keep

• A tax invoice for every purchase over $82.50 (including GST) that you claim a GST credit on. Below that, a receipt or bank record is enough.
• A copy of every invoice you issued, showing the GST.
• Records for five years. Photos of paper receipts are fine as long as they are readable.

The habit that makes BAS take an hour

BAS is only painful when the quarter's records are scattered across a glovebox, a phone and a bank statement. The fix is not a bigger weekend at the end of the quarter; it is five minutes a day.

Invoice from one place, so every sale is already recorded with its GST. Enter each expense the day you pay it, with a photo of the receipt attached. Then the quarter's G1, 1A and 1B are just totals of what is already there.

SmokoBooks shows every month and quarter with the BAS labels on it, and the GST position updates as you go, so on the 28th you are copying three numbers into the ATO portal, not reconstructing three months.

Putting the money aside

GST is never yours. A simple rule: every time a customer pays, move one-eleventh of it into a separate account. When the quarter ends, the GST is already sitting there, and what you claim back on expenses is a bonus.

Common questions