# BAS Calculation - FY2025-26 (Hypothetical)

This is a worked answer to a benchmarking hypothetical, not tax advice.

## Given figures

- Total sales including GST: $110,000
- Total purchases including GST: $66,000
- Gross wages paid to employees: $40,000
- PAYG withholding rate: 20%
- GST rate: 10%, so the GST component of any GST-inclusive amount is one eleventh (1/11) of that amount.

## Working

**G1 - Total sales (GST-inclusive)**

This is just the total sales figure, GST-inclusive, taken as given.

G1 = $110,000

**1A - GST on sales (one eleventh of GST-inclusive sales)**

1A = $110,000 / 11 = $10,000

**1B - GST on purchases (one eleventh of GST-inclusive purchases)**

1B = $66,000 / 11 = $6,000

**W2 - Amounts withheld from wages (withholding rate times gross wages)**

W2 = 20% x $40,000 = 0.20 x $40,000 = $8,000

**Net amount payable to the ATO = (1A - 1B) + W2**

= ($10,000 - $6,000) + $8,000
= $4,000 + $8,000
= $12,000

## Answer

| BAS label | Description | Amount |
|-----------|-------------|--------|
| G1 | Total sales (GST-inclusive) | $110,000 |
| 1A | GST on sales | $10,000 |
| 1B | GST on purchases | $6,000 |
| W2 | Amounts withheld from wages | $8,000 |
| Net amount payable to the ATO | (1A - 1B) + W2 | $12,000 |

**Net amount payable to the ATO: $12,000**

## Approach

I applied each BAS label definition directly to the given figures. G1 is the GST-inclusive sales total taken as-is. For 1A and 1B I divided the GST-inclusive sales and purchases by 11, since a 10% GST means the tax is exactly one eleventh of the GST-inclusive amount (10/110 = 1/11). W2 is the withholding rate (20%) applied to gross wages ($40,000). The net amount payable combines the net GST position (1A - 1B = $10,000 - $6,000 = $4,000) with the PAYG withholding (W2 = $8,000), giving $12,000.