Business Technology / SaaS

How to Do Business Activity Statement in 2026: Best Steps for BAS

February 11, 2026 by info@worldtradeaffiliation.com
How To Do Business Activity Statement: Confident pro reviews BAS at desk in a modern, organized office.

Understanding Business Activity Statements (BAS) in 2026

What Is a Business Activity Statement?

A Business Activity Statement (BAS) is a tax form that businesses in Australia use to report GST (Goods and Services Tax), PAYG (Pay As You Go) withholding, and other tax obligations to the Australian Taxation Office (ATO). BAS helps ensure you pay the correct amount of tax or get credits for the taxes you’ve paid.

Who Needs to Lodge a BAS?

If your business is registered for GST, you need to lodge a Business Activity Statement. This includes most small businesses, companies, and sole traders whose GST turnover is $75,000 or more per year. Some non-profit organizations and contractors may also need to submit BAS.

Key Changes to BAS Requirements in 2025–2026

In 2026, the ATO has introduced new BAS features such as simpler reporting for small businesses, improved online forms, and updated lodgement deadlines. It’s important to review the latest updates before you begin your Business Activity Statement.

Preparing for Your BAS: What You Need Before You Start

Required Documents and Information

  1. Collect all sales, purchase, and expense invoices.
  2. Retrieve bank statements and receipts.
  3. Gather PAYG summaries if you withhold tax from employees.
  4. Use prior BAS records for comparison and double-checking.

Reconciling GST, PAYG, and Other Tax Data

  1. Total your GST collected from sales and GST paid on purchases.
  2. Add up PAYG withholding (if you employ staff).
  3. Check superannuation, fuel tax credits, and other tax details.
  4. Make sure your records match your bank statements and accounting software.

Choosing Manual vs. Automated BAS Preparation

You can prepare your Business Activity Statement manually with paper records and a calculator or use automated accounting software. Software like Xero or MYOB can save time and help reduce errors.

Step-by-Step: How to Do a Business Activity Statement Online

Accessing the ATO Portal in 2026

  1. Go to the official ATO website.
  2. Log in using your myGovID or business credentials.
  3. Select “Lodge BAS” from your business account dashboard.

Completing Each Section of the BAS Form (With Screenshots)

  1. Enter your total sales and GST collected in the GST section.
  2. Input GST paid on purchases to claim credits.
  3. Fill out PAYG withholding for employees.
  4. Add information for other taxes if relevant (like fuel tax credits).
  5. Review the summary to make sure all figures are correct.

Lodging BAS via ATO, myGovID, or Accounting Software

  1. Double-check all details entered.
  2. Submit your Business Activity Statement online using the ATO portal, myGovID, or supported accounting software.
  3. Save or print the confirmation page for your records.

Using Accounting Software for BAS: Xero, MYOB & More

Integrating BAS with Cloud Accounting Platforms

Most cloud accounting programs, like Xero and MYOB, let you prepare Business Activity Statements directly from your saved transactions. Connect your business bank account to import data automatically.

Automating GST and PAYG Calculations

  1. Set up GST codes for your transactions in the software.
  2. The software will calculate GST on sales and purchases for you.
  3. PAYG amounts will be generated based on your payroll entries.

Submitting BAS Directly from Bookkeeping Software

  1. Check that your accounts are up to date.
  2. Use the software BAS report generator.
  3. Submit your Business Activity Statement electronically from within the platform.
  4. Keep digital copies for your files.

Common BAS Mistakes and How to Avoid Them in 2026

Top Errors in GST Reporting

  • Entering sales or purchases in the wrong boxes.
  • Forgetting to include cash sales or overseas purchases.
  • Claiming GST credits on expenses that don’t have GST.

PAYG Withholding & Instalment Pitfalls

  • Forgetting to report PAYG withheld from employee wages.
  • Miscalculating PAYG instalments, especially if income varies seasonally.
  • Not updating PAYG instalment rates when your business changes.

Reconciling Bank Data vs. BAS Figures

  • Always cross-check your bank statements and sales registers.
  • Look out for missing transactions or duplicate entries.
  • Make time each month to reconcile your accounts before doing BAS.

BAS Lodgement Deadlines and Late Penalties in 2026

Important Dates for Monthly, Quarterly, and Annual BAS

BAS Frequency Due Date
Monthly 21st of the following month
Quarterly 28th of the month after each quarter ends
Annual As stated on your ATO notice

What Happens If You Lodge Late?

If you lodge your Business Activity Statement after the deadline, you may be charged a fine or interest. The ATO will notify you of any penalties. To avoid these, always mark BAS dates in your calendar.

How to Request Extensions or Amend BAS

  1. If you can’t lodge on time, request an extension through the ATO portal as soon as possible.
  2. To correct mistakes, use the “revise BAS” section online.
  3. Contact the ATO or your tax agent for help.

Sample Business Activity Statement: Annotated Example

Walkthrough of a Completed BAS Form

  1. Business information: ABN, tax period, and contact.

  2. GST section: Total sales, GST on sales, GST credits from purchases.

  3. PAYG section: Tax withheld and instalment income.

  4. Other taxes: Fill in as needed.

  5. Final declaration: Check your totals and sign electronically.

Explaining Each Field with Tips for Accuracy

  • ABN and period: Double check for accuracy.
  • GST amounts: Only claim credits for GST-registered supplier purchases.
  • PAYG: Use payroll software or accurate manual records.
  • Declaration: Review everything before submitting.

BAS Troubleshooting Guide: FAQs and Solutions

What If Your Numbers Don’t Match?

  • Check for missing invoices or double entries.
  • Compare your bank statements and software reports.
  • Contact the ATO for help if you can’t find the error.

Fixing Common Submission Issues

  1. Clear your browser cache if the ATO portal isn’t loading.
  2. Make sure your myGovID or credentials are correct.
  3. Retry after checking your internet connection.

Getting Help: When to Contact the ATO or a Tax Agent

If you’re unsure about your Business Activity Statement, consider talking to a registered tax agent. For urgent questions, use the ATO’s online help or contact center.

BAS Checklist for Small Business Owners (2026 Edition)

  • Collect all invoices, receipts, and bank statements.
  • Update your accounting records and reconcile accounts.
  • Total your GST collected and paid.
  • Gather PAYG figures and other tax details.
  • Choose manual or software preparation.
  • Log in to the ATO portal and complete the BAS form.
  • Double-check all details before submitting.
  • Keep copies of your BAS submission and payment receipts.

FAQ: Business Activity Statements in Australia

  • Q: What is a Business Activity Statement?
    A: It’s a report businesses lodge with the ATO to declare GST, PAYG, and other tax obligations.
  • Q: Who needs to lodge a BAS?
    A: Most businesses registered for GST or PAYG need to submit it.
  • Q: Can I use software to lodge BAS?
    A: Yes, most cloud accounting software supports direct BAS submission.
  • Q: What happens if I make a mistake on my BAS?
    A: You can revise your Business Activity Statement online or request help from the ATO.
  • Q: Are there penalties for late BAS lodgement?
    A: Yes, the ATO may charge interest or fines for late submissions.
  • Q: Where can I get BAS help?
    A: Contact the ATO, a tax agent, or use online resources for guidance.

With this step-by-step guide, small business owners in Australia can confidently prepare, lodge, and manage their Business Activity Statements in 2026. Remember to stay organized, use available tools, and seek help if needed to keep your business tax obligations on track.

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