Now I'll compute the BAS figures.

- G1 = total sales (GST-inclusive) = $110,000
- 1A = 110,000 / 11 = $10,000
- 1B = 66,000 / 11 = $6,000
- W2 = 20% × 40,000 = $8,000
- Net = (10,000 − 6,000) + 8,000 = $12,000

# BAS calculation - quarterly activity statement

This is a benchmarking hypothetical, not tax advice. Figures are as at FY2025-26.

## Inputs

- Total sales including GST: $110,000
- Total purchases including GST: $66,000
- Gross wages paid to employees: $40,000
- PAYG withholding rate: 20%

Because all sales and purchases are GST-taxable at 10%, each GST-inclusive amount contains one eleventh (1/11) of GST.

## Results by BAS label

| Label | Description | Amount |
|-------|-------------|--------|
| **G1** | Total sales (GST-inclusive) | **$110,000** |
| **1A** | GST on sales (1/11 of GST-inclusive sales) | **$10,000** |
| **1B** | GST on purchases (1/11 of GST-inclusive purchases) | **$6,000** |
| **W2** | Amounts withheld from wages | **$8,000** |
| **Net amount payable to the ATO** | (1A − 1B) + W2 | **$12,000** |

## Working

- **G1** = total sales including GST = **$110,000** (stated directly; G1 is reported GST-inclusive).
- **1A** = GST on sales = 1/11 × $110,000 = $110,000 ÷ 11 = **$10,000**.
- **1B** = GST on purchases = 1/11 × $66,000 = $66,000 ÷ 11 = **$6,000**.
- **W2** = withholding rate × gross wages = 20% × $40,000 = 0.20 × $40,000 = **$8,000**.
- **Net amount payable** = (1A − 1B) + W2 = ($10,000 − $6,000) + $8,000 = $4,000 + $8,000 = **$12,000**.

## Approach

Each figure follows the label definitions given. The GST components (1A and 1B) are extracted as one eleventh of the respective GST-inclusive totals, since a 10% GST means the tax is 10/110 = 1/11 of the GST-inclusive amount. W2 applies the 20% PAYG withholding rate to gross wages. The net amount payable combines the business's net GST position (GST collected on sales less GST paid on purchases) with the PAYG amounts withheld from employee wages, both of which are owed to the ATO. With no PAYG instalments, fuel tax credits, or other amounts this quarter, the net payable is $12,000.