Sick Of BAS Admin? This One Decision Could Save You Hours Every Month

For Australian business owners, one of the more frequent obligations you’ll face is lodging your Business Activity Statement (BAS). Whether you choose to do this monthly or quarterly has real implications for your cash flow, compliance, and how much time you spend on admin. So, which is better: monthly or quarterly BAS reporting?

The short answer: Quarterly BAS reporting is the standard option for most small businesses in Australia and tends to be the most practical due to its lower administrative burden. However, monthly BAS may suit businesses with high GST refunds or those required by the ATO due to turnover thresholds.

Below, we break down the pros, cons, and ATO requirements of each option to help you decide what’s best for your situation.

What is BAS Reporting?

The Business Activity Statement (BAS) is a form submitted to the Australian Taxation Office (ATO) to report and pay various tax obligations, including:

• Goods and Services Tax (GST)
• Pay As You Go (PAYG) withholding
• PAYG instalments
• Fringe Benefits Tax (FBT) instalments
• Wine Equalisation Tax (WET)
• Luxury Car Tax (LCT)

BAS is typically lodged either monthly or quarterly, depending on your business size and ATO requirements.

When Are You Required to Lodge Monthly vs. Quarterly BAS?

ATO-Determined Reporting Frequency

The ATO sets default reporting obligations based on your business’s GST turnover:

• Monthly BAS is required if your GST turnover is $20 million or more.
• Quarterly BAS is allowed if your GST turnover is under $20 million, unless the ATO notifies otherwise.

If you’re eligible for quarterly but prefer monthly, you can opt in.

Choosing Your BAS Lodgement Cycle

You can choose your preferred cycle (monthly or quarterly) if your turnover is under $20 million. But once chosen, you must stick with it for a full 12-month period before changing.

Pros and Cons of Quarterly BAS Reporting

Pros

• Less admin: Only four BAS lodgements per year
• Easier cash flow planning: GST collected and paid quarterly gives breathing room
• Better fit for small businesses: Default option for businesses under $20 million turnover

Cons

• Delayed GST credits: You may have to wait longer to claim GST on purchases
• Larger payment amounts: Paying three months’ worth of GST and PAYG at once can be significant

Quarterly BAS is the go-to option for most small and medium businesses due to its simplicity and reduced frequency.

Pros and Cons of Monthly BAS Reporting

Pros

• Faster GST refunds: If you’re in a GST refund position (e.g. high upfront costs), you get your money back sooner
• Improved cash flow tracking: Staying on top of income and expenses monthly can help with forecasting
• ATO-mandated for larger businesses: No choice if you’re over $20 million in GST turnover

Cons

• More frequent admin: You need to submit a BAS every month
• Tighter deadlines: Each BAS is due by the 21st of the following month
• More complex for small operators: Particularly if you don’t have a bookkeeper or accountant

Monthly BAS works best for businesses consistently in a GST refund position or those with robust accounting systems.

Key Deadlines for BAS Lodgement

Quarterly BAS Deadlines

• Q1 (Jul–Sep): Due 28 October
• Q2 (Oct–Dec): Due 28 February (extra time due to holiday season)
• Q3 (Jan–Mar): Due 28 April
• Q4 (Apr–Jun): Due 28 July

Monthly BAS Deadline

• 21st of the following month (e.g. July BAS is due 21 August)

Note: If you lodge through a registered BAS or tax agent like Tax Window, you may be eligible for extended deadlines.

When Does Monthly BAS Make Sense?

You Regularly Receive GST Refunds

Businesses with upfront costs (like construction, importing, or early-stage operations) may consistently receive GST refunds. Monthly BAS helps improve cash flow by getting refunds sooner.

You Need Tight Cash Flow Control

If you need real-time insight into your GST obligations or prefer smaller, more regular payments over lump sums, monthly reporting offers better visibility.

You’re Growing Rapidly

If you’re close to the $20 million GST threshold, moving to monthly BAS voluntarily can help establish a habit before the ATO mandates it.

When Quarterly BAS is the Better Choice

You Prefer Less Admin

Quarterly BAS is ideal if you want to minimise the frequency of tax obligations without missing any ATO requirements.

Your GST Is Balanced or Payable

If you mostly pay GST rather than receive refunds, there’s little benefit to monthly reporting. Quarterly lets you plan payments better.

You Lack Internal Bookkeeping Support

Without a dedicated finance team, quarterly BAS is more manageable for most businesses.

Switching Between Monthly and Quarterly BAS

If your business is eligible, you can request to change your BAS reporting cycle via:

• ATO online services
• Your registered BAS or tax agent
• By contacting the ATO directly

Just note:

• You can only switch at the start of a new financial year (for quarterly to monthly)
• Or at the start of a new quarter (for monthly to quarterly)

Always consider the admin implications and potential cash flow effects before making the change.

Final Thoughts: Choosing the Right BAS Reporting Cycle

Choosing between monthly and quarterly BAS reporting comes down to three key factors:

1. Your business size (ATO thresholds)
2. Cash flow needs (GST refunds or payments)
3. Administrative capacity (in-house or via your accountant)

For most Australian small businesses, quarterly BAS strikes the right balance between compliance and simplicity. However, if you’re regularly in a GST refund position or growing quickly, monthly BAS can offer significant cash flow advantages.

Not sure which BAS cycle suits you best? At Tax Window, we help Australian businesses navigate their BAS obligations with clarity and confidence, whether monthly, quarterly, or beyond.