How much should a tradie set aside for BAS?

Most BAS problems are not tax problems. They are habit problems. The money was in the account, it looked like working capital, and it got spent. A set-aside routine takes that decision out of your hands, which is exactly why it works.

Why does the GST in my account feel like my money?

Because the bank does not label it. When a client pays a GST-inclusive invoice, one lump arrives, and the part that belongs to the ATO sits indistinguishably next to the part that pays your bills.

The ATO describes the BAS as the way a GST-registered business reports and pays GST, PAYG instalments, PAYG withholding and other taxes. All of it is money you are holding on someone else’s behalf, or a tax you will owe. It only becomes yours after the BAS has been paid.

Trades make this harder than most, because costs come early. Materials, fuel and wages go out first, and cash is regularly tight just before a payment lands. That is exactly when a mixed-up balance gets spent.

How much should I move aside?

Three buckets are worth separating.

Bucket	What goes in	When
GST	The GST portion of each payment received	The day the payment lands
Withheld tax	The tax taken from employee pay	On each pay run
Super	Contributions owed on wages	On each pay run, and paid within 7 business days after payday

For GST, if a price includes GST, the GST portion is one eleventh of the total. A payment of $11,000 includes $1,000 of GST. If your reporting method means GST falls due before the payment arrives, your accountant can tell you how that affects timing.

Our GST and BAS set-aside planner does the maths for you and shows how much to expect on your next statement.

What does a working routine look like?

Keep it simple enough to survive a bad week.

1. One account, one job. A separate account used only for tax money.
2. Same-day transfers. The GST portion moves when the payment lands, not on Friday.
3. A transfer on every pay run. Withheld tax and super go across before wages are spent elsewhere.
4. A monthly look. Compare the balance with what you expect to owe at the next BAS.
5. A hands-off rule. The only withdrawal is to pay the ATO or the super fund.

An illustrative example, with no real business involved: a tiling business receives a GST-inclusive payment on a bathroom job and moves the GST across the same afternoon. Two weeks later the supplier statement lands and the everyday account looks thin. Because the GST is already in its own place, the business sees the real pressure straight away and can chase an invoice or talk to the supplier, rather than discovering a hole at BAS time.

If the habit sounds right but your cash flow feels too thin to do it, that is a sign to look at the underlying gap. Our cash flow gap planner will show you how large it is.

What gets in the way of setting money aside?

Even people who like the idea run into the same few obstacles, and naming them helps.

• Lumpy income. A big payment arrives, then nothing for weeks. The fix is to move the tax portion of the big payment immediately, because that is the money that will be needed.
• Mixed accounts. If personal and business money share one balance, nothing is clear. A separate business account is the first step, and a separate tax account is the second.
• Pressure from suppliers. A supplier chasing a statement feels more urgent than a BAS that is weeks away. Remember the BAS date is fixed and the supplier will often negotiate.
• Underquoting. If jobs are priced without room for the tax portion, the set-aside will always feel like a squeeze. Our job quote margin calculator shows what a job really leaves you.

What if the set-aside is already short?

Do not wait for the due date. Options, in order of calm:

• Lodge on time regardless. A lodged BAS with a balance is a much better starting point than an unlodged one. See GST and BAS debt.
• Ask about a payment plan. Debts on a plan generally keep accruing interest, so it works best for smaller shortfalls.
• Look at finance. Unsecured options typically run from $5k to $500k, and property-secured loans from $20k to $5m, which can clear the shortfall in one payment and reset the habit.

The right choice depends on size, timing and whether any notice has arrived. If you want a lender’s view, send us the numbers and a real person will talk it through with you.

How does this fit with tax time?

Set-aside covers the three obligations that sit inside BAS and payroll. Income tax on your year’s profit is a separate bucket, and worth its own regular transfer. Our guide to tax time cash flow for tradies covers that side, including the quarterly BAS dates of 28 October, 28 February, 28 April and 28 July.

Once the routine is running, BAS stops being an event. It becomes a transfer you have been preparing for all quarter. If you want to double-check your own set-up, a registered tax professional can confirm how GST and PAYG apply to your business.

Ready to reset the position?

If you are already behind on BAS or worried about the next one, the form takes about a minute. There is no credit check when you first enquire, so you can look at what is possible without putting a mark on your file.

We do not share your details with a long list of lenders, so you will not be chased by people you have never heard of. A real person reads what you send and calls to talk it through. Please fill it in accurately, especially the amount owing and the type of debt, so we can match you properly the first time.

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