What to Review Before You Lodge Your BAS
For many business owners, lodging the Business Activity Statement (BAS) feels like just another compliance task. But a rushed or careless BAS can lead to avoidable ATO scrutiny, penalties, or missed refunds.
Whether you lodge monthly or quarterly, it pays to slow down and check your numbers before hitting submit. Here’s what to review before you lodge — and a practical checklist to help you stay compliant and in control.
Why Accuracy Matters
The ATO is increasingly using data matching and analytics to detect anomalies in BAS lodgments. If your reported GST, PAYG withholding or fuel tax credits don't align with other returns (or industry benchmarks), your business may be flagged for review or audit.
Errors also have practical consequences:
Overstating GST paid or understated income reduces cash flow
Underreporting liabilities can lead to interest and penalties
Incorrect PAYG figures affect employee payment summaries and your year-end reconciliations
Lodging without full review undermines your financial reports
Getting it right at the BAS stage ensures your numbers flow correctly into your financial statements, tax return, and overall business reporting.
Key Areas to Review Before You Lodge
1. GST on Sales
Have all sales for the period been captured?
Are all GST-free, input-taxed and export sales correctly classified?
Have you excluded internal transfers or non-GST income (e.g. director loans, insurance proceeds)?
Are there any deposits or prepayments that were incorrectly treated as income?
2. GST on Purchases
Are all GST credits claimed on valid tax invoices?
Have you excluded purchases without GST (e.g. wages, bank fees, some imports)?
Are asset purchases correctly coded and supported?
Have you reversed any credits on private-use expenses or fringe benefits?
3. PAYG Withholding
Do the PAYG amounts match payroll records and payslips?
Have you included all wages processed during the BAS period?
Have any adjustments (e.g. bonuses, backpays) been captured?
4. PAYG Instalments (if applicable)
Are you using the correct instalment amount or rate?
Is the income base you’re reporting consistent with your actual trading position?
5. Fuel Tax Credits (if applicable)
Are you using the correct rates for the relevant period?
Have you excluded ineligible vehicles (e.g. light vehicles under 4.5 tonnes for public roads)?
Do your litres claimed match actual fuel purchases?
6. Bank Reconciliations
Are your bank accounts, credit cards, and loans reconciled up to the end of the BAS period?
Have you reviewed undeposited funds or unreconciled items for errors?
7. Business Use vs Private Use
Are private use adjustments applied to motor vehicle expenses, phones, home office, etc.?
Have you excluded personal transactions mistakenly coded as business?
8. Reporting Method
Are you reporting GST on a cash or accruals basis?
Does your accounting software match the ATO-registered method?
What Happens if You Get it Wrong?
ATO penalties for BAS errors can include:
General interest charges on underpaid tax
Administrative penalties for false or misleading statements
Delays in processing GST refunds
Increased risk of audit for repeated or systemic mistakes
It’s far better to identify and correct errors before you lodge, rather than wait for the ATO to ask questions.
BAS Lodgment Checklist
Use this checklist before each BAS lodgment to help ensure accuracy and compliance.
BAS Pre-Lodgment Checklist
Finalise all sales and purchase entries for the BAS period
Reconcile bank accounts and credit cards up to the period end
Review GST coding on income and expenses
Confirm GST-free and input-taxed items are correctly reported
Check for large or unusual transactions and ensure correct treatment
Validate that all tax invoices for GST claims are on file
Apply any private-use adjustments
Confirm PAYG withholding matches payroll records
Review PAYG instalment settings (if applicable)
Check fuel tax credit eligibility and litres claimed (if applicable)
Match GST reporting method in software with ATO registration
Print or export a copy of the BAS summary for records
Review final figures before submission
Lodge BAS by due date or ensure agent extension applies
Set calendar reminder for the next BAS cycle
Need Help?
Whether you're lodging yourself or working with a bookkeeper, a second set of eyes from your accountant can catch issues before the ATO does. We assist clients with BAS preparation, GST reviews, and streamlining accounting systems for accuracy.
If you're unsure about any part of your BAS process or want help tightening your reporting, contact us for a review before your next lodgment.
