Your first BAS: GST and tax for tradies, explained simply

If you're registered for GST, you'll lodge a Business Activity Statement (BAS) with the ATO. For a lot of first-year tradies, the first one is a shock — usually because the GST they collected has already been spent.

What is a BAS?

It's a form that reports the GST you charged clients, minus the GST you paid on business costs. You pay the difference to the ATO. It can also include PAYG instalments (prepaying your income tax) and wages withheld if you have staff.

When is it due?

Most small businesses lodge quarterly. If you lodge yourself, the usual due dates are 28 October, 28 February, 28 April and 28 July. Registered BAS and tax agents can often get you more time.

How GST works for you

• Add 10% GST to your invoices — that money belongs to the ATO
• Claim back the GST on tools, materials, fuel and other business costs
• Keep every receipt (a photo is fine)
• Only invoices marked 'Tax invoice' with your ABN let your clients claim GST

Make it painless

Open a separate savings account. Every time you're paid, move the GST plus 25–30% for income tax across. When the BAS comes, the money is already there.

Henri shows you exactly how much to set aside every time an invoice is paid, and warns you as you get close to the $75,000 GST registration threshold.

General information only — a registered BAS agent or accountant can lodge for you.