Reviewing Business Activity Statements
Business Activity Statements give brokers a view of self employed turnover and GST position between tax returns. Reading them well supports stronger presentation of recent trading performance.
Understanding what a BAS reports
A BAS reports total sales, GST collected on sales, total purchases, GST credits claimed, PAYG withholding on employee wages, and PAYG instalments on business income. The statement is lodged monthly, quarterly, or annually depending on the business turnover and ATO registration.
Using recent BAS data to support current year income
Some lenders accept recent BAS figures to support an uplift on the prior year tax return for self employed borrowers. The methodology varies by lender. Common approaches include annualising the most recent four quarters of BAS turnover or comparing year to date turnover to the same period the prior year.
Spotting cash flow and compliance issues
A BAS showing unpaid GST, late lodgement penalties, or significant variation between quarters can raise concerns. Brokers should ask about any pattern that looks unusual and document the explanation for the file.
Key takeaways
- ✓Understand what BAS actually reports and what it does not
- ✓Know which lenders accept BAS data to support current year income
- ✓Watch for late lodgement, unpaid GST, and quarter to quarter variation
- ✓Document the methodology used to support any income uplift
How QualifyMate helps
QualifyMate reads tax returns, notices of assessment, and company financial statements to build a self employed income picture. Brokers can pair the platform with BAS data to support a current year uplift narrative on the file.
Key terms
Related guides
Reading Tax Returns for Self Employed Borrowers
A practical guide to reviewing Australian tax returns for mortgage applications. Key sections, add backs, and how to verify assessable income.
Verifying Self Employed Income for Home Loan Applications
A workflow for verifying self employed income on mortgage files. Documents to collect, structures to understand, and assessments to run.
Reviewing Profit and Loss Statements for Self Employed Borrowers
How to read profit and loss statements for self employed home loan applications. Revenue, expenses, add backs, and interim financials.
Reading ATO Notices of Assessment
How to review Australian Notices of Assessment for home loan applications. What the document confirms and how to spot outstanding ATO debts.
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