What is the difference between a Chartered Accountant and a regular accountant in Australia?

A Chartered Accountant (CA) has completed additional postgraduate training and practical experience beyond a standard accounting degree, and is credentialled by Chartered Accountants ANZ. This qualifies them to handle complex financial matters including tax planning, business structuring, SMSF auditing, and financial advisory work. A regular or general accountant holds a degree but typically does not hold the CA designation. At Verus, all our principals are Chartered Accountants, which means you receive specialist-level advice rather than generalist bookkeeping. This matters when your financial decisions have lasting tax or structural implications for your business or personal wealth.

How much does a tax accountant cost in Sydney?

The cost of a tax accountant in Sydney varies based on the complexity of your return and the services required. For a straightforward individual tax return, fees typically range from $150 to $400. For business tax returns (company, trust, or partnership), fees generally start from $500 and can rise significantly depending on the volume of transactions, payroll, and additional compliance work involved. At Verus, we offer transparent, fixed-fee pricing and a free initial consultation so you know exactly what to expect before you commit. Engaging a registered tax accountant rather than lodging yourself often saves more in deductions and maximises your return compared to the cost of the service.

What business structure should I choose when setting up a company in Australia?

Choosing the right business structure in Australia is one of the most important decisions you will make, as it affects your tax obligations, personal liability, and ability to grow. The four main options are: Sole Trader (simplest, lowest cost, but no liability protection), Partnership (shared ownership, each partner liable), Company (separate legal entity, limited liability, higher compliance costs), and Trust (flexible for asset protection and income distribution, but more complex to manage). For most SMEs and growing businesses, a company or discretionary trust structure offers the best balance of asset protection and tax efficiency. The right choice depends on your revenue, industry, number of owners, and long-term goals. Our chartered accountants at Verus can walk you through all options in a free consultation and set up the structure that works for you.

What is an SMSF and how do I know if one is right for me?

A Self-Managed Super Fund (SMSF) is a private superannuation fund you manage yourself, giving you direct control over how your retirement savings are invested. Unlike retail or industry super funds, an SMSF allows you to invest in a broader range of assets, including residential and commercial property, shares, and term deposits. An SMSF is generally worth considering if you have a combined super balance of at least $200,000 to $300,000, a long-term investment strategy, and the time to meet your trustee obligations. The ATO requires SMSFs to be audited annually and to comply with strict reporting rules. At Verus, our SMSF accountants manage the full setup, ongoing compliance, and annual audit requirements, so you can focus on building your retirement wealth without the administrative burden.

What is the difference between Xero and MYOB, and which is better for my business?

Both Xero and MYOB are leading cloud-based accounting platforms in Australia, but they suit different business needs. Xero is generally preferred by small businesses and startups for its clean interface, strong third-party app integrations, and real-time bank feeds. MYOB tends to suit businesses with more complex payroll requirements, multiple entities, or those that prefer a locally developed platform with strong ATO integration. At Verus, we are certified Xero Advisors and MYOB Partners, meaning we can implement, optimise, or migrate your accounting software regardless of which platform you use. Our team will assess your business size, payroll complexity, and reporting needs to recommend the right fit, so you are not paying for features you do not need.

What is a virtual CFO and does my small business need one?

A virtual CFO (vCFO) is an outsourced financial expert who performs the strategic functions of a Chief Financial Officer without the cost of a full-time executive hire. For small and medium businesses that need high-level financial planning, cash flow management, KPI tracking, and strategic advice but cannot justify a full-time CFO salary, a virtual CFO service fills that gap. At Verus, our virtual CFO service is available on demand, giving business owners access to strategic financial guidance when they need it most, whether that is during rapid growth, a restructure, a funding round, or when navigating a complex tax position. If you are a growing SME spending more time on financial decisions than on your core business, a virtual CFO is likely worth considering.

How can I legally reduce my business tax in Australia?

There are several legal strategies Australian business owners can use to reduce their tax liability. These include: choosing the right business structure (companies and trusts can offer significant tax advantages over sole traders); making pre-tax superannuation contributions; timing income and expenses around financial year end to manage taxable income; claiming all eligible deductions including home office, vehicle, equipment, and professional development costs; using small business tax concessions such as the instant asset write-off; and ensuring your business is split across family members or entities where appropriate. Tax minimisation is a specialist area and the rules change regularly with ATO updates and Federal Budgets. At Verus, our chartered accountants provide proactive tax planning as part of our annual service, not just at lodgement time, so you are always positioned to pay what you owe, and nothing more.

What is financial modelling and why does my business need it?

Financial modelling is the process of building a structured representation of a business's financial performance, typically in a spreadsheet or financial tool, to forecast future outcomes and support decision-making. A good financial model lets you test scenarios, for example what happens to your cash flow if revenue drops 20%, or whether you can afford to hire two more staff in the next quarter, before committing real money. Businesses commonly use financial models for raising investment, applying for finance, planning acquisitions, and managing cash flow through growth periods. At Verus, our financial modelling service goes beyond spreadsheets. We combine accounting expertise with strategic insight to build models that are commercially relevant, clearly presented, and designed to hold up under scrutiny from investors and lenders.

Do I need an accountant to set up a company in Australia?

Technically, you do not legally require an accountant to register a company in Australia. You can register directly through ASIC and set up an ABN through the Australian Business Register yourself. However, the registration step is only a small part of setting up a business correctly. Most business owners who go it alone without professional advice end up choosing the wrong structure, missing key compliance obligations (payroll, BAS, ASIC annual reviews), or setting up their books in a way that costs more to fix later. An accountant ensures your structure is right from day one for your tax position, liability protection, and growth plans. At Verus, we handle the full setup process for companies, trusts, and SMSFs, including ASIC registration, ABN and ACN applications, and accounting software implementation, so nothing falls through the cracks.

What is the difference between a bookkeeper and an accountant in Australia?

A bookkeeper manages the day-to-day recording of financial transactions, including invoicing, payroll, bank reconciliation, BAS preparation, and accounts payable and receivable. An accountant takes this data and uses it to prepare financial statements, lodge tax returns, provide tax advice, and guide broader business strategy. Many businesses need both. In practice, a bookkeeper ensures your records are accurate and up to date, while an accountant interprets that data to minimise tax, support growth decisions, and meet compliance obligations. At Verus, we provide both services under one roof. Our bookkeeping team works in Xero, MYOB, and Reckon, and our chartered accountants use that clean data to deliver accurate reporting, strategic tax advice, and business advisory support tailored to your goals.

What Is a BAS and How Do You Lodge It in Australia?

BAS (Business Activity Statement) and How Do You Lodge It — Completing a BAS correctly is one of the most important compliance tasks for any GST-registered business in Australia.

What Is a Business Activity Statement (BAS)?

A Business Activity Statement, commonly called a BAS, is the form Australian businesses submit to the Australian Taxation Office (ATO) to report and pay several tax obligations in one document. Rather than submitting separate returns for each tax type, the BAS consolidates them into a single lodgement.

A BAS can include any combination of the following, depending on your business obligations:

GST (Goods and Services Tax): the difference between GST collected from customers and GST paid on business purchases (input tax credits)
PAYG Withholding: tax withheld from employee wages and paid to the ATO on their behalf
PAYG Instalments: prepayments towards your own income tax liability (for businesses and investors above certain income thresholds)
Fuel Tax Credits: credits for fuel used in machinery, heavy vehicles, or for off-road business activities
Wine Equalisation Tax (WET): for businesses that manufacture, wholesale, or import wine
Luxury Car Tax (LCT): for businesses that sell or import luxury vehicles

Not all of these will apply to every business. A typical small business BAS covers GST and PAYG withholding (if they have employees). If you are a sole trader with no employees and below the GST threshold, you may not need to lodge a BAS at all. If you need clarity on your obligations, our Taxation and Accounting services cover all of this end-to-end.

Who Needs to Lodge a BAS?

You are required to register for GST, and therefore lodge a BAS, if your business has a GST turnover (gross income) of $75,000 or more per year. The threshold is $150,000 for non-profit organisations, and there is no threshold for taxi, ride-share, or limousine drivers.

You can also voluntarily register for GST if your turnover is below $75,000. This makes sense if your customers are themselves GST-registered businesses, since you can claim input tax credits on your purchases.

If you have employees and withhold PAYG from their wages, you need to lodge a BAS even if you are not registered for GST. In this case, you lodge an IAS (Instalment Activity Statement) instead, but the process is similar. Our Bookkeeping and Payroll team can manage payroll setup and PAYG compliance for you.

Quarterly vs Monthly BAS: What Is the Difference?

Most small businesses lodge their BAS quarterly. Higher-turnover businesses lodge monthly. Here is a full comparison:

Factor	Quarterly BAS	Monthly BAS
Who it applies to	Most small businesses (GST turnover under $20M)	Businesses with GST turnover of $20M or more
Reporting periods	4 per year (Jul-Sep, Oct-Dec, Jan-Mar, Apr-Jun)	12 per year (one per calendar month)
Due dates	28th of the month following quarter end	21st of the following month
Cash flow impact	Larger lump-sum payments quarterly	Smaller, more frequent payments — easier to manage cash flow
Bookkeeping frequency	Can reconcile quarterly	Must keep books current monthly
Can you elect monthly?	Yes — any business can opt in to monthly reporting	N/A (mandatory above $20M)
Annual turnover threshold	Under $20M GST turnover	$20M+ GST turnover (mandatory)
Agent extension?	Yes — extended deadlines for registered agent clients	No — monthly deadlines are fixed

Most small businesses in Australia lodge quarterly. If you use a registered BAS agent or tax agent, your quarterly BAS deadline is typically extended — often to the 25th of the month following the quarter. This is worth knowing when planning your bookkeeping and cash flow. For a broader overview of how Verus handles compliance for small businesses, visit our Business Advisory Services page.

BAS Lodgement Deadlines for 2025-26

Mark these dates in your calendar. Missing a BAS deadline is one of the most avoidable — and most costly — compliance errors a business can make.

Quarter	Period Covered	Standard Due Date	Agent Extended Date
Q1 FY2026	1 July – 30 September 2025	28 October 2025	25 November 2025
Q2 FY2026	1 October – 31 December 2025	28 February 2026	25 February 2026 (no extension Q2)
Q3 FY2026	1 January – 31 March 2026	28 April 2026	25 May 2026
Q4 FY2026	1 April – 30 June 2026	28 July 2026	25 August 2026

How to Complete and Lodge Your BAS: Step by Step

Whether you lodge through Xero, MYOB, or the ATO Business Portal, the underlying process is the same. Follow these steps in order to avoid errors and penalties.

Reconcile Your Books for the Quarter

Before you can complete your BAS, your accounting records need to be up to date and reconciled. Every bank transaction for the quarter should be categorised, every invoice issued recorded, and every supplier bill entered. If you are using Xero or MYOB, run a reconciliation report to confirm the bank balance matches your software records.

Calculate Your GST Collected (G1 and 1A)

G1 is your total sales (including GST). From this, your accounting software calculates 1A: the GST you collected from customers. Check this figure against your sales invoices. If any sales were GST-free (fresh food, medical services, exports), they count in G1 but do not generate GST in 1A.

Calculate Your GST Credits (G10, G11, and 1B)

G10 is capital purchases (GST-inclusive assets), and G11 is other business purchases (GST-inclusive expenses). The GST on these is your input tax credit, shown as 1B on the BAS. This is the GST you paid to suppliers and are entitled to claim back. Only purchases used for business purposes qualify.

Calculate Net GST (1A minus 1B)

If 1A is greater than 1B, you pay the difference to the ATO. If 1B is greater than 1A (more GST on purchases than collected from sales), the ATO owes you a refund. This is common for businesses in early stages or those with high capital expenditure in a quarter.

Report PAYG Withholding (W2 and W3) If You Have Employees

W2 is the total PAYG withholding deducted from employee wages during the quarter. W3 covers any amounts not deducted under small withholding concessions. These amounts were withheld from your employees’ pay and must now be remitted to the ATO. Your payroll software should generate these figures automatically from your payroll runs.

Report PAYG Instalments If Applicable (T7 or T8)

If the ATO has placed you on a PAYG instalment arrangement for your own income tax, you will see an instalment amount on your BAS. You can vary this amount if your business income has changed significantly, but varying incorrectly can result in a penalty at tax time. Your accountant can advise the right instalment figure.

Lodge via Xero, MYOB, or the ATO Business Portal

Most accounting platforms (Xero, MYOB, QuickBooks) can lodge your BAS directly to the ATO without a separate login. Alternatively, lodge through the ATO’s Online Services for Business portal. Paper BAS forms are still available but processing is significantly slower. If using a BAS or tax agent, they lodge on your behalf electronically.

Pay the Amount Owing (or Receive Your Refund)

If GST and PAYG withholding result in a net amount owing, payment is due by the same date as your BAS lodgement. You can pay via BPAY, EFT, credit card, or in person at Australia Post. If you are owed a refund, the ATO processes it within 14 days of lodgement. Keep your receipt number from the lodgement confirmation — you will need it if there are any queries.

Business owner using Xero accounting software to lodge a BAS in Australia — Xero and MYOB pull your reconciled figures automatically and lodge directly to the ATO in real time.

Ways to Lodge Your BAS: Method Comparison

Method	Best For	Speed	Cost	Key Notes
Xero / MYOB (direct lodge)	Cloud accounting software users	Instant	Included in subscription	Figures pull automatically from your books — fastest and most accurate method
ATO Online Services for Business	Businesses without accounting software	Same day	Free	Manual data entry — ensure figures match your records exactly
Registered BAS or Tax Agent	Businesses wanting professional review	Same day (electronic)	Agent fee (tax deductible)	Extended deadlines, professional accuracy, ATO representation if queried
myGov (individuals)	Sole traders with simple BAS obligations	Same day	Free	Limited for complex BAS — most small businesses should use the Business Portal
Paper BAS form	Businesses without internet access	Up to 10 weeks processing	Free (postage cost)	Not recommended — significantly slower refunds and processing times

Are you a sole trader trying to understand the difference between BAS lodgement and your income tax return? Read our step-by-step guide: How to Lodge a Tax Return in Australia. It covers PAYG instalments for sole traders, what income to declare, and the most common lodgement mistakes to avoid.

6 BAS Mistakes That Cost Australian Businesses Money

1. Claiming GST Credits on Non-Business Purchases

Only purchases used for business purposes attract input tax credits. Personal expenses run through a business account, or mixed-use items without apportionment, are common audit triggers. Meals, entertainment, and items with partial private use all require careful treatment.

2. Including GST-Free Items in the Wrong Label

GST-free sales (fresh food, medical services, educational courses, exports) count toward your G1 total sales figure but must not generate GST in 1A. Getting this wrong means either overpaying or underpaying GST — both create problems with the ATO.

3. Not Reconciling Before Lodging

Lodging a BAS before your bank reconciliation is complete means the figures in your BAS may not match your actual transactions. Discrepancies spotted later require an amendment, which draws ATO attention and delays refunds or creates penalties.

4. Missing the Due Date

Late BAS lodgement attracts a Failure to Lodge penalty of $330 per 28 days, up to $1,650. If you owe GST, the General Interest Charge (GIC) accrues daily on the unpaid amount from the due date. A registered agent extends your deadline — a strong reason to use one.

5. Reporting on a Cash Basis When You Should Use Accruals

Small businesses (under $10M turnover) can choose cash or accruals accounting for GST. Whichever method you choose must be applied consistently. Switching without ATO approval, or mixing methods within a period, produces incorrect BAS figures that are difficult to unwind.

6. Forgetting to Vary PAYG Instalments When Business Slows

If your business income has dropped significantly, paying your original PAYG instalment amount means you are overpaying tax during the year. You can vary your instalment on the BAS, but the varied amount must be a reasonable estimate. Underestimating by too much attracts an ATO shortfall penalty at year end.

Chartered accountant reviewing BAS records and GST figures for a Sydney small business — A registered BAS agent reviews every figure before lodging, catching errors that would otherwise trigger ATO queries or penalties.

Frequently Asked Questions

Do I need to lodge a BAS if I am not registered for GST?
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If you are not registered for GST but have employees and withhold PAYG from their wages, you will lodge an IAS (Instalment Activity Statement) instead of a BAS. An IAS covers PAYG withholding but not GST. If you have no employees and are not registered for GST, you do not need to lodge a BAS or IAS at all. However, once your turnover reaches $75,000, GST registration and BAS lodgement become mandatory.

What is the difference between a BAS and an IAS?
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A BAS (Business Activity Statement) is for GST-registered businesses and covers GST, PAYG withholding, and PAYG instalments. An IAS (Instalment Activity Statement) is a simpler form for businesses not registered for GST — it only covers PAYG withholding and PAYG instalments. Think of the IAS as a partial BAS without the GST component. The lodgement process and deadlines are similar.

How do I lodge a BAS through Xero in Australia?
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In Xero, go to Accounting > Reports > Activity Statement (BAS). Xero pulls your sales, purchases, and payroll data automatically for the selected period and populates the BAS labels. Review each figure against your reconciliation, make any adjustments, then click Lodge to send directly to the ATO. You will need to have connected Xero to the ATO through the Software ID in your ATO Online Services settings. Xero Certified Advisors like Verus AA can handle lodgement on your behalf.

What are the penalties for lodging a BAS late in Australia?
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The ATO charges a Failure to Lodge (FTL) penalty of $330 for every 28-day period (or part thereof) the BAS remains unlodged, up to a maximum of $1,650. If you also owe GST, the General Interest Charge accrues daily on the unpaid amount from the due date until payment is received. For small businesses with a good compliance history, the ATO may remit the penalty on request, but this is not guaranteed. The safest approach is to lodge even if you cannot pay in full, then contact the ATO to arrange a payment plan.

Can I amend a BAS after it has been lodged?
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Yes. You can amend a BAS for up to four years from the original lodgement date (or longer in some cases). Amendments can be made online through the ATO Business Portal, through your accounting software, or through your BAS agent. If the amendment results in additional GST owing, pay it promptly to minimise interest charges. If it results in a credit (you overpaid), the ATO will refund or offset it. Proactively amending before the ATO identifies the error is always viewed more favourably than waiting for them to find it.

What is the difference between cash and accruals accounting for BAS?
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Small businesses with a GST turnover under $10 million can choose either cash accounting or accruals accounting for GST. Cash accounting means you report GST when you receive payment (not when you issue the invoice) and claim input tax credits when you pay suppliers (not when you receive the bill). This is simpler and better for cash flow. Accruals accounting matches income and expenses to the period they relate to, regardless of when cash is exchanged. Most accountants recommend cash accounting for small service businesses and accruals for larger or product-based businesses. Once you choose a method, you must apply it consistently — changing requires ATO approval.

Do I need to lodge a BAS if my business made no sales in a quarter?
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Yes. Once you are registered for GST, you must lodge a BAS for every reporting period — even if your business had nil sales and nil GST. You simply lodge a nil BAS. Failing to lodge because you had no activity still attracts the Failure to Lodge penalty. If you expect prolonged inactivity, speak to your BAS agent about whether cancelling your GST registration may be appropriate.

Need Help With Your BAS?

Our Chartered Accountants and registered BAS agents handle reconciliation, preparation, and lodgement for businesses across Sydney. We catch errors before they become penalties. Call 02 9980 1556 or book online.

Book a Free Consultation

What Is a BAS (Business Activity Statement) and How Do You Lodge It in Australia?