Question 1

When is BAS due in Australia in 2026?

Accepted Answer

For quarterly BAS lodgers in 2026, the key due dates under the ATO's standard lodgement program are: Quarter 1 (July–September 2025) was due 28 October 2025; Quarter 2 (October–December 2025) was due 28 February 2026; Quarter 3 (January–March 2026) is due 28 April 2026; and Quarter 4 (April–June 2026) is due 28 July 2026. Monthly BAS lodgers — required for businesses with annual GST turnover of $20 million or more, though some smaller businesses opt in voluntarily — must lodge by the 21st of the month following the reporting period. Businesses using a registered tax or BAS agent typically receive extended lodgement deadlines under the ATO lodgement program, provided they are registered with the agent before the standard due date. Failure to lodge on time triggers Failure to Lodge (FTL) penalties and General Interest Charge on any outstanding amounts.

Question 2

What is GST and when must an Australian business register?

Accepted Answer

GST (Goods and Services Tax) is a broad-based 10% consumption tax applied to most goods and services sold or consumed in Australia. Businesses must register for GST compulsorily once their annual GST turnover reaches or is expected to reach $75,000 (or $150,000 for not-for-profit organisations). GST registration is also compulsory for ride-share and taxi operators regardless of turnover. Once registered, businesses must charge 10% GST on all taxable sales, include a GST-inclusive price in advertising, issue valid tax invoices for transactions over $82.50, lodge BAS to report GST collected and claim input tax credits on business purchases, and remit the net GST amount to the ATO. Businesses below the $75,000 threshold can voluntarily register for GST, which allows them to claim input tax credits but also requires BAS lodgement for every reporting period — even if there is nothing to report

Question 3

What are the penalties for late or incorrect BAS lodgement in Australia?

Accepted Answer

Late BAS lodgement in Australia triggers the ATO's Failure to Lodge (FTL) penalty system. For small entities (most SMEs), the FTL penalty is one penalty unit — currently $330 as indexed under Commonwealth law — for each 28-day period the BAS remains overdue, up to a maximum of 5 penalty units totalling $1,650 per statement. For medium entities with annual assessable income or GST turnover between $1 million and $20 million, penalty units are doubled, making the maximum penalty $3,300 per late statement. For large entities above $20 million, penalties are five times the base rate. In addition to FTL penalties, the ATO charges General Interest Charge (GIC) on any tax owing from the original due date — currently calculated at approximately 11–12% per annum. Incorrect BAS lodgements that underreport GST or over-claim input tax credits can attract shortfall penalties of 25–75% of the tax shortfall, depending on culpability

Question 4

What is the difference between GST-free and input-taxed supplies in Australia?

Accepted Answer

GST-free and input-taxed are two distinct GST categories in Australian tax law, and correctly distinguishing between them is critical for accurate BAS lodgement. GST-free supplies are taxable for GST purposes — meaning GST applies in principle — but the rate is zero percent. Examples include most basic food items, health services, education, and exports. Critically, businesses making GST-free supplies can still claim input tax credits (GST credits) on the purchases they make to deliver those supplies. Input-taxed supplies are different: no GST is charged on the sale, but the supplier also cannot claim input tax credits on purchases related to providing those supplies. Examples include residential rent, financial services, and precious metals. Misclassifying input-taxed supplies as GST-free (or vice versa) leads to incorrect BAS lodgements, overstated or understated input tax credit claims, and potential ATO audit risk. Growwth Partners maintains correct GST coding across all supply types for every client

Question 5

What small business tax concessions are available in Australia in 2026?

Accepted Answer

Australian small businesses with an aggregated annual turnover of less than $10 million (or $2 million for certain concessions) are entitled to a range of small business tax concessions that can significantly reduce their tax liability. Key concessions include the small business income tax offset for sole traders (up to $1,000 per year based on business income); simplified depreciation rules including the instant asset write-off for eligible depreciating assets; the small business restructure rollover allowing assets to be transferred between business structures without immediate tax liability; GST concessions including annual BAS lodgement for eligible small businesses; and the 25% corporate tax rate for base rate entities (companies with less than $50 million aggregated turnover and less than 80% of income from passive sources). Growwth Partners incorporates small business concession planning into every tax engagement — identifying all eligible concessions and ensuring they are correctly applied in annual returns

Question 6

What is PAYG withholding and how does it work for Australian businesses?

Accepted Answer

PAYG (Pay As You Go) withholding is the system by which Australian employers deduct tax from employee wages and remit it to the ATO on behalf of their employees — so that employees meet their income tax obligations progressively throughout the year rather than in a lump sum at tax time. Every time an Australian employer pays wages, they must calculate the correct withholding amount based on the employee's ATO tax table rate (derived from their tax file number declaration, salary bracket, and any applicable offsets), deduct that amount from the gross wage, pay it to the ATO, and report it via STP Phase 2 each payday. PAYG withholding is reported and remitted to the ATO on quarterly BAS for small employers (annual PAYG withholding below $25,000), monthly instalment activity statements for medium employers ($25,000–$1 million per annum), and weekly for large employers (above $1 million). Growwth Partners manages the complete PAYG withholding cycle for all payroll clients, including calculation, BAS reporting, and year-end STP finalisation

Question 7

What is Fringe Benefits Tax (FBT) and which Australian businesses need to pay it?

Accepted Answer

Fringe Benefits Tax (FBT) is a tax payable by Australian employers on certain non-cash benefits provided to employees or their associates in connection with employment. Common fringe benefits include company cars used for private purposes, employer-paid entertainment, employee loans at below-market interest rates, expense payments for personal costs, housing benefits, and car parking. The FBT year runs from 1 April to 31 March — separate from the income tax year — and the current FBT rate is 47%. FBT applies to benefits provided to employees regardless of whether those employees are contractors, directors, or current and former staff. There are several important exemptions and concessions, including the work-related use exemption for vehicles and the minor benefits exemption for individual benefits worth less than $300. Growwth Partners advises on FBT obligations, helps structure employee remuneration packages to maximise legitimate FBT exemptions, and prepares and lodges FBT returns by the 21 May annual deadline

Question 8

How does the ATO use data-matching to identify non-compliant Australian businesses?

Accepted Answer

The ATO's data-matching program is one of the most sophisticated compliance tools in the Australian tax system — cross-referencing data from multiple sources to identify discrepancies between what businesses report and what third-party data shows. In 2025–2026, the ATO is actively matching STP Phase 2 payroll data against BAS PAYG withholding figures to identify employers underreporting wages; bank transaction data against declared business income to find unreported revenue; property data from state governments against rental income declared; payment platform data (including Airbnb, Uber, eBay, and other sharing economy platforms) against declared income; and super fund data against SGC obligations to identify late or underpaid super. The ATO processed over 700 million transactions through data-matching programs in 2024–2025. For Australian businesses, the implication is clear: accurate, reconciled financial records and correct, timely lodgements are no longer just good practice — they are essential protection against ATO compliance action. Growwth Partners maintains all client records to ATO-match standard, with AI-assisted cross-checks before every lodgement

Taxation & BAS Compliance Services in Australia - ATO-Ready, Penalty-Free, Proactively Managed

Professional taxation services for Australian startups, SMEs, and scale-ups — from quarterly BAS lodgements and GST compliance to corporate tax returns, PAYG withholding management, and proactive tax planning. Growwth Partners keeps your business ATO-compliant year-round, not just at tax time.

Trusted over 200+ startups/businesses around the world

What Our Australian Taxation Services Include

BAS Preparation and Lodgement

GST Compliance and Reporting

Corporate Tax Return Preparation

PAYG Withholding and PAYG Instalments

Fringe Benefits Tax (FBT) Support

Tax Planning and SME Concessions

ATO Correspondence and Audit Support

Key deadlines 2025–26

Who Our Taxation and Compliance Services Support

Why Businesses Choose Growwth Partners for Tax Compliance

Year-Round Compliance, Not Just Tax Season

Integrated with Your Accounting and Payroll

AI-Assisted Pre-Lodgement Review

Frequently Asked Questions

ATO Compliance Shouldn't Keep You Up at Night.