Quick answer
Lodged BAS are one of the most common substitutes for tax returns in low doc lending. They show turnover reported to the ATO each quarter, including total sales at G1 and, if you have staff, wages at W1. Most lenders ask for the last four quarters, paired with business bank statements for the same period, so they can check the reported sales actually arrived in the bank.
Key points
- BAS show reported turnover quarter by quarter, which is what lenders need most.
- Four consecutive quarters is the usual ask; more helps if trade is seasonal.
- Pairing BAS with bank statements for the same months makes both more credible.
- BAS don't show profit, so expect questions about costs.
- Usual ask
- Last 4 lodged BAS
- Key label
- G1 total sales
- Pair with
- Bank statements, same period
Why can a BAS stand in for a tax return?
A tax return tells a lender what the business earned over a full year. A BAS tells them what it sold each quarter, reported to the ATO under penalty for getting it wrong. That makes four lodged BAS a surprisingly good proxy for a year’s turnover, and they’re usually far more recent than the last tax return.
That recency is the real advantage. A return for last financial year might be nine to eighteen months out of date by the time a lender sees it. The latest BAS might be only a few weeks old.
Which parts of the BAS do lenders read?
The ATO’s BAS covers GST, PAYG withholding, PAYG instalments and, for some businesses, other taxes. Lenders mostly look at a handful of labels:
| Label | What it shows | What a lender takes from it |
|---|---|---|
| G1 | Total sales for the period (including any GST) | Turnover, quarter by quarter |
| 1A | GST on sales | A cross-check on G1 |
| 1B | GST on purchases | A rough sense of spending on inputs |
| W1 | Total salary, wages and other payments | Whether you have staff, and the payroll load |
| W2 | Amounts withheld from those payments | That PAYG withholding is being reported |
Our guide to reading your BAS like a lender goes label by label with worked examples.
How many BAS do you need?
Four consecutive quarters is the common request, because it shows a full year including your quiet months. If your trade is strongly seasonal, eight quarters can help show the pattern repeats rather than being a one-off dip.
The ATO’s due dates are the 21st of the following month for monthly lodgers, and 28 October, 28 February, 28 April and 28 July for quarterly lodgers, with an extra two weeks for eligible online lodgement on most quarters. If your most recent quarter has ended but isn’t due yet, tell the lender; a quarter “not yet due” is different from one that’s overdue.
Why pair BAS with bank statements?
A BAS shows what you reported. Bank statements show the money that actually arrived. Put together, they’re far more convincing than either on its own:
- If G1 for the quarter is roughly in line with business deposits for the same three months, the lender has two independent sources agreeing.
- If they don’t line up, there’s usually a reason (invoices unpaid at quarter end, cash takings, sales through a second account). Explain it before you’re asked.
See bank statements as income evidence for what lenders look for in the statements themselves.
Illustrative example: a return that’s a year old
Illustrative only; not a real business.
A café owner’s last lodged tax return is for the year that ended fifteen months ago. Her accountant is working on the latest one. She needs $55,000 to replace a coffee machine and refrigeration.
She supplies her last four quarterly BAS (G1 showing sales between $118,000 and $141,000 a quarter, with W1 wages reported each quarter), six months of statements from the business account and her card terminal settlement reports. The G1 figures line up with deposits plus card settlements. The old return is barely relevant; the lender can see current trading clearly.
What don’t BAS tell a lender?
BAS are strong on sales but light on everything else:
- Profit. 1B hints at purchases, but not wages paid in cash, rent on GST-free leases, or owner drawings.
- Debts. Nothing on the BAS shows loans or tax owing.
- Assets. No balance sheet information at all.
So BAS are rarely used alone. The usual companions are bank statements (for costs and conduct) and a signed statement of assets and liabilities. If you want a quick read on which companions you already have, try the substitute checker.
How do you get copies?
The ATO says individuals can view and print activity statements through online services linked to myGov, and companies, trusts and partnerships can get them through Online services for business, which also has activity statements going back further. Your BAS agent or tax agent can download them for you too. Our page on ATO online records explains the rest of what’s worth downloading while you’re logged in.
Common BAS problems, and how to handle them
| Issue | What a lender may think | What to do |
|---|---|---|
| One BAS lodged late | Minor admin slip | Mention it; show it’s now lodged |
| Two or more quarters missing | Possible unknown GST debt | Provide an ATO account statement and a catch-up plan |
| G1 much higher than deposits | Cash not banked or a second account | Explain, and include every business account |
| A sudden drop in one quarter | Lost customer or seasonal dip | One sentence explaining why |
| BAS amended after lodgement | Figures may be unreliable | Supply the amended version and the reason |
Lenders see these every day. What they want is to know about the issue before they find it.
Put your BAS to work
If your BAS are lodged but your tax return isn’t, you may be closer to funding than you think. Start a quick enquiry and tell us how many quarters you have. There’s no credit check when you first enquire, and your file goes to one team, not a line-up of lenders.
A real person will look at your figures and call you. Please give accurate turnover on the form; it should roughly match your recent BAS. Check your options.
Frequently asked questions
How many BAS do lenders want?
Usually the last four quarters, so a full year of trading is visible. Seasonal businesses sometimes provide more to show the pattern repeats.
Where do I get copies of my lodged BAS?
Through ATO online services: myGov for sole traders, or Online services for business for companies, trusts and partnerships. Your BAS agent or tax agent can also provide them.
Do lenders care if I lodged a BAS late?
They'll notice. One late BAS with a good reason is minor. A pattern of late lodgement raises questions about the ATO balance, so have your ATO account statement ready.
My BAS are on a cash basis. Does that matter?
Not usually. Cash-basis BAS reflect money actually received, which lines up neatly with bank statements. Just be consistent about which basis you use.
Can BAS replace financial statements entirely?
They cover turnover well but not profit or your balance sheet. Many lenders fill those gaps with bank statements and a signed assets and liabilities statement.