Quarterly vs Monthly BAS Lodgement: Which One Is Right for Your Business?
If you’re a new business owner in Australia, one of the first things you will hear about is the BAS, or Business Activity Statement. Every business registered for GST must submit a BAS to the ATO.
One question confuses almost everyone: “Should I lodge my BAS quarterly or monthly?”
The answer depends on your income, tax obligations, cash flow, and sometimes the ATO’s rules. This guide offers detailed information for business owners in Adelaide, Melbourne, Sydney, Perth, Brisbane, Canberra, Darwin, and Tasmania.
1. What Is a BAS? (Simple Explanation)
A Business Activity Statement (BAS) is a report you send to the ATO to show:
- GST you collected
- GST you paid
- PAYG withholding (if you have employees)
- PAYG instalments (if the ATO requires it)
If you are registered for GST, you must lodge a BAS even if you had no sales.
2. Who Needs to Lodge a BAS?
You must lodge a BAS if:
- you are registered for GST, or
- the ATO has put you on a PAYG instalment plan.
Most small businesses lodge BAS every quarter, but some must do it monthly.
3. The Two Most Common BAS Lodgement Frequencies
The ATO allows two main options:
- Quarterly BAS Lodgement (most common)
- Monthly BAS Lodgement (for high-turnover or selected businesses)
Annual BAS is only for micro businesses with special rules, so we will focus on the two main options.
4. Quarterly BAS Lodgement
Who usually lodges quarterly?
According to ATO data, over 70% of small Australian businesses lodge BAS quarterly. This includes:
- sole traders
- tradies
- cafes and small shops
- small online sellers
- small service businesses
Quarterly BAS due dates (ATO confirmed):
- Q1 (Jul to Sep): 28 October
- Q2 (Oct to Dec): 28 February
- Q3 (Jan to Mar): 28 April
- Q4 (Apr to Jun): 28 July
If a registered BAS agent lodges for you, the ATO often gives extra time.
Benefits of Quarterly BAS:
- Easier for small businesses with simple accounts
- You lodge only 4 times per year
- Less paperwork
- Easier cash flow planning
- Lower bookkeeping cost
Downsides of Quarterly BAS:
- You may forget expenses
- Big bills every three months
- Harder to keep track of GST during fast growth
5. Monthly BAS Lodgement
Who must lodge monthly?
The ATO requires monthly BAS lodgement if:
- Your GST turnover is $20 million or more
- You are a large employer with high withholding amounts.
- The ATO reviews your account and decides you should lodge monthly.
Many growing businesses choose monthly BAS, even if it’s not required.
Benefits of Monthly BAS:
- Easier cash flow control
- Smaller monthly amounts instead of big quarterly bills
- Good for businesses with many invoices
- Better for fast-growing startups
- Easier to claim GST credits sooner
Downsides of Monthly BAS:
- More bookkeeping work
- Takes more time
- More ATO reporting
- Can feel overwhelming without an accountant
Monthly BAS due date: 21st of each month
Example:
August BAS is due 21 September.
6. Quarterly vs Monthly BAS: Clear ATO-Backed Comparison
7. Which One Is Better for Your Business?
The best BAS cycle depends on your business size, turnover, and cash flow style. Here is a simple breakdown:
Choose Quarterly BAS if:
- – You are a sole trader
- – You earn under $20 million in GST turnover
- – You want less admin work
- – You run a small or medium business
- – Your cash flow is stable
Most Australian businesses fall into this category.
Choose Monthly BAS if:
- – Your business is growing fast
- – You want tighter cash flow control
- – You claim large GST credits every month
- – You issue many invoices
- – You deal with large suppliers regularly
- – You prefer small monthly payments over large quarterly ones
8. Real Examples
Example 1: Barber Shop in Adelaide
Turnover: $110,000 per year
- Expenses are steady
- Simple GST records
- Quarterly BAS is better.
Example 2: Construction Contractor in Melbourne
- Large monthly purchases
- High GST credits
- Monthly BAS helps claim credits faster.
Example 3: Cafe in Sydney
- Many small daily payments
- Steady turnover
- Prefers quarterly planning
- Quarterly BAS works well.
Example 4: Online Store in Perth
- Sales jump quickly each month
- Needs accurate ATO reporting
- Monthly BAS may offer better control.
9. ATO Statistics That Matter - for business owners
- More than 4.4 million BAS statements were submitted in 2024.
- Over 70% of small businesses file their BAS quarterly.
- Businesses with a turnover of $20 million or more must submit their BAS monthly; there are no exceptions.
- GST brings in about $80 billion a year for government revenue.
10. Does Your BAS Cycle Affect Your Cash Flow?
Yes. This is one of the main reasons businesses make the switch. Quarterly BAS payments feel larger.
Example: If your GST payable is $1,200 for the quarter, you pay it all at once.
Monthly BAS breaks it into smaller amounts.
Example: Instead of paying $1,200 at once, you pay about $400 each month. For many small businesses, this makes managing expenses easier.
11. Can You Change from Quarterly to Monthly or Monthly to Quarterly?
Yes, the ATO allows you to change once per financial year. You can request this through your registered BAS agent, ATO Online Services, or ATO phone support. Most changes happen from 1 July.
12. What Happens If You Lodge BAS Late? (ATO Penalties)
If you submit your forms late, the ATO may impose a Failure to Lodge (FTL) penalty. ATO penalty units apply for every 28 days you are late: 1 penalty unit equals $330 at the 2024-25 rate.
- Small businesses face 1 penalty unit.
- Medium businesses face 2 penalty units.
- Large businesses face 5 penalty units.
- Interest may be added if GST is not paid.
Final Recommendation
If your business is small or stable, quarterly BAS is usually the best choice. If your business is growing quickly or has high expenses, monthly BAS can help you manage cash flow and claim credits sooner. Still unsure? A BAS agent can review your income, GST collected, and expenses to show you which option saves you more money.
Need Help Choosing Quarterly or Monthly BAS?
We help thousands of small businesses across Australia stay compliant and stress-free.
AMA Accountants — Registered Tax Agents & BAS Specialists
Servicing Adelaide, Melbourne, Sydney, Perth, Brisbane, Canberra, Darwin, Tasmania
📞 +61 (0)420 529 890
📧 finance@amaaccountant.com.au
Authored By Amit Chugh
Partner, CPA & Registered Tax Agent
Your Trusted Accountant for Adelaide, Melbourne, Sydney, Brisbane & Across Australia
Amit Chugh is a Partner at The AMA Accountant and a highly respected CPA & Registered Tax Agent with a proven track record of delivering exceptional accounting and taxation services to individuals, businesses, and corporations across Australia.
Amit Chugh is a Partner at The AMA Accountant and a highly respected CPA & Registered Tax Agent with a proven track record of delivering exceptional accounting and taxation services to individuals, businesses, and corporations across Australia.
With over 25+ of professional experience, Amit has helped thousands of clients streamline their finances, optimise tax returns, and ensure full compliance with Australian Taxation Office (ATO) requirements. His client base spans Melbourne, Brisbane, Sydney, Tasmania, Perth, Adelaide, Darwin, Canberra, and regional hubs including Prospect, Modbury, Mawson Lakes, Woodville, Mount Gambier, Victor Harbor, Whyalla, Port Lincoln, Murray Bridge, Port Augusta, Gawler, and Port Pirie.
