au-gst-bas

Australia BAS — Non-GST Sections v1.0

What this file is

Obligation category: CT (Consumption Tax) / ET (Estimated Tax) / WHT (Withholding Tax) Functional role: Return — complementary to australia-gst.md Status: Complete

This file covers the non-GST sections of the Business Activity Statement. For GST labels (1A through 9), see australia-gst.md in this directory.

Tax year coverage. This skill targets the 2024-25 income year (1 July 2024 to 30 June 2025).

The reviewer is the customer of this output. This skill assumes a credentialed reviewer reviews and signs the return. The skill produces working papers and a brief, not a return.

Section 1 — Scope statement

This skill covers:

• PAYG withholding labels (W1 through W5) — amounts withheld from payments to employees and contractors
• PAYG income tax instalment labels (T1 through T9) — quarterly pre-payments of income tax
• FBT instalment label (F1) — fringe benefits tax quarterly instalments
• Fuel tax credits (7C, 7D) — overview only
• BAS lodgement and payment deadlines
• Entity types: Sole proprietors and individual taxpayers who lodge BAS

This skill does NOT cover:

• GST labels (1A through 9) — see australia-gst.md
• Partnerships, companies, trusts, or superannuation funds
• Wine equalisation tax (WET) or luxury car tax (LCT)
• Detailed fuel tax credit calculations

Section 2 — Filing requirements

2.1 Who must lodge a BAS

• BAS lodgement obligation — Any entity registered for GST, or with a PAYG withholding obligation, or entered into the PAYG instalment system must lodge a BAS. (TAA 1953 Sch 1 Div 16)

2.2 Lodgement frequency

Lodgement frequency (TAA 1953 Sch 1 s 31-5)

Situation	BAS frequency	Source
GST turnover < $10M, no monthly election	Quarterly	TAA 1953 Sch 1 s 31-5
GST turnover >= $10M	Monthly	TAA 1953 Sch 1 s 31-5
Voluntary monthly reporter	Monthly	ATO election
PAYG withholding-only (no GST)	Quarterly	TAA 1953 Sch 1 Div 16

2.3 Due dates (quarterly)

Due dates (quarterly) (ATO lodgement programme)

Quarter	Period	Due date
Q1	1 Jul – 30 Sep	28 October
Q2	1 Oct – 31 Dec	28 February
Q3	1 Jan – 31 Mar	28 April
Q4	1 Apr – 30 Jun	28 July (if lodging electronically, may be extended to 25 August for Q4)

• Weekend/holiday due date rule — If the due date falls on a weekend or public holiday, the due date is the next business day. Tax agents may have extended lodgement programmes. (ATO lodgement programme)

Section 3 — Rates and thresholds

3.1 PAYG withholding

PAYG withholding rates and rules (TAA 1953 Sch 1 Div 12)

Item	Detail	Source
Withholding obligation trigger	Making payments to employees, directors, or contractors who do not quote an ABN	TAA 1953 Sch 1 Div 12
No-ABN withholding rate	47% of the payment amount	TAA 1953 Sch 1 s 12-190
Voluntary agreement rate	As per the ATO tax tables or agreed rate	TAA 1953 Sch 1 s 12-55
Labour hire withholding	As per ATO tax tables	TAA 1953 Sch 1 s 12-60

3.2 PAYG income tax instalments

PAYG income tax instalment rates and thresholds (TAA 1953 Sch 1 s 45-5)

Item	Amount / Rate	Source
Entry threshold	Instalment income >= $4,000 AND notional tax >= $1,000 in prior year	TAA 1953 Sch 1 s 45-5
Instalment rate	As notified by the ATO (varies per taxpayer)	ATO instalment rate notice
GDP-adjusted rate	ATO may adjust the instalment rate annually by a GDP uplift factor	TAA 1953 Sch 1 s 45-405
GDP uplift factor 2024-25	6% (to be confirmed by ATO each year)	ATO legislative instrument
Voluntary entry	Taxpayers can voluntarily enter the system	TAA 1953 Sch 1 s 45-15

3.3 FBT instalments

FBT instalment rates and thresholds (TAA 1953 Sch 1 s 45-60)

Item	Amount / Rate	Source
FBT instalment threshold	Notional FBT amount >= $3,000 in prior FBT year	TAA 1953 Sch 1 s 45-60
FBT year	1 April to 31 March	FBTAA 1986 s 149
Instalment rate	25% of prior year FBT liability each quarter	TAA 1953 Sch 1 s 45-400

Section 4 — Computation rules

4.1 PAYG withholding (labels W1-W5)

• PAYG withholding computation steps — Step 1. Identify all payments subject to withholding during the period: - Salary and wages to employees (W1 — gross payments) - Amounts withheld from salary and wages (W2) - Other amounts withheld — voluntary agreements, labour hire, no-ABN withholding (W3, W4) - Total amount withheld = W2 + W4 (reported at W5) Step 2. Cross-check W1 against payroll records / STP (Single Touch Payroll) reports. Step 3. Cross-check W2 against ATO PAYG withholding tax tables for each employee's earnings level. Step 4. If the entity makes payments to contractors without an ABN, withhold 47% and include in W4. Step 5. Total withholding at W5 is the amount payable to the ATO for the period. (TAA 1953 Sch 1 Div 12)

4.2 PAYG income tax instalments (labels T1-T9)

Two methods are available:

Method A — Instalment amount method (label T7)

• Instalment amount method steps — Step 1. ATO notifies the instalment amount on the pre-filled BAS. Step 2. The taxpayer reports the notified amount at T7 (or varies it). Step 3. If varying, the taxpayer calculates estimated tax for the year divided by the number of remaining quarters and reports at T7 with a reason for variation at T3. (TAA 1953 Sch 1 s 45-5)

Method B — Instalment rate method (labels T1-T2)

• Instalment rate method steps — Step 1. Calculate instalment income for the quarter (T1). Instalment income = gross business and investment income. It does NOT include salary/wages (already subject to PAYG withholding), GST, or capital gains. Step 2. Multiply T1 by the ATO-notified instalment rate (T2). Step 3. Result = T1 x T2 = instalment amount payable (T9). Step 4. The taxpayer may vary the rate (enter new rate at T2) if they believe the notified rate will result in over-payment. A general interest charge (GIC) applies if the varied amount is less than 85% of the correct amount. (TAA 1953 Sch 1 s 45-120)
• Instalment amount formula — T1 x T2 = instalment amount payable (T9) (TAA 1953 Sch 1 s 45-120)

4.3 FBT instalment (label F1)

• FBT instalment computation steps — Step 1. If the taxpayer has an FBT instalment obligation, the ATO pre-fills label F1 with 25% of the prior year FBT liability. Step 2. The taxpayer may vary the instalment if FBT liability is expected to be lower. Step 3. Report at F1. The annual FBT return (due 21 May for non-tax-agent lodgement or 25 June for tax agents) reconciles the actual liability. (TAA 1953 Sch 1 s 45-400)

4.4 Net BAS payable / refundable

• Net BAS payable formula — Total BAS payable = GST payable (from australia-gst.md labels) + W5 + T9 (or T7) + F1 - any credits. (australia-gst.md)

Section 5 — Edge cases and special rules

5.1 Variation of PAYG instalments

• PAYG instalment variation and GIC exposure — A taxpayer may vary their instalment amount or rate downward if they expect lower income. GIC exposure: If the varied amount is less than 85% of the correct instalment, a general interest charge applies on the shortfall. The GIC rate is updated quarterly by the ATO (base rate = 90-day bank bill rate + 7%). Variation uplift factor: If the taxpayer varies for two or more consecutive quarters, the ATO may apply a higher GDP uplift factor in the following year. (TAA 1953 Sch 1 s 45-205)

5.2 First year of business

• First year of business rules — New businesses are not required to pay PAYG instalments in their first year of operation (no prior-year benchmark). They enter the system from the first BAS after their first income tax assessment. PAYG withholding applies from the first payment to employees. (unsure)

5.3 STP and BAS alignment

• STP Phase 2 and BAS alignment — Since 1 January 2022, employers reporting through STP Phase 2 may not need to separately report W1/W2 on the BAS if they are a "closely held" payee reporter. For most sole traders with employees, W1-W2 must still be reported on BAS. (unsure)

5.4 Ceasing PAYG instalments

• Exiting the PAYG instalment system — A taxpayer can request to exit the PAYG instalment system if their notional tax falls below $500 or they cease business. Notify the ATO via the BAS or Business Portal. (unsure)

5.5 Nil BAS

• Nil BAS requirement and FTL penalty — If all labels are zero, a nil BAS must still be lodged by the due date. Failure to lodge a nil BAS attracts a failure-to-lodge (FTL) penalty of one penalty unit ($313 for 2024-25) for each 28-day period (up to 5 penalty units). (unsure)

Section 6 — Self-checks

Before delivering output, verify:

• All withholding amounts (W1-W5) agree with payroll / STP records
• PAYG instalment income (T1) excludes salary, GST, and capital gains
• The instalment rate (T2) matches the ATO notification or is validly varied
• FBT instalment (F1) is 25% of prior year FBT liability or validly varied
• Lodgement due date has been correctly identified (including any tax agent extensions)
• GST section cross-references to australia-gst.md output
• Rates and thresholds match the 2024-25 income year
• Output format matches the base skill spec

Section 7 — Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.

The most up-to-date, verified version of this skill is maintained at openaccountants.com. Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes.