BAS Excluded (out of scope)
Money that is not a supply and does not appear on the activity statement.
BAS Excluded marks a transaction that is outside the GST system altogether and therefore does not appear on any label of the activity statement: transfers between your own accounts, loan principal, owner drawings, the GST payment itself, income-tax payments and wages. It is different from GST-free, which is a real sale or purchase that is reported with zero GST.
Accounting platforms call the same treatment “BAS Excluded”, “N-T” (not reportable) or “out of scope”. Getting it right matters in both directions: excluding a genuine GST-free sale understates G1, and including a loan repayment overstates purchases at G11.
Worked example
You move $5,000 from your business account to your personal account as drawings, and pay $1,200 to the ATO for last quarter’s GST. Neither is a supply, so both are BAS Excluded and no label changes. The $880 of stock you bought the same week is a real purchase and goes to G11 with $80 to 1B.
Common mistake
Marking wages BAS Excluded and forgetting the W labels. Wages are outside the GST section, but if you withhold PAYG they still belong at W1 and W2 on the same statement.
Grounded in ATO guidance. Figures last checked . General information, not tax advice.
Related terms
GST-free
Sales with no GST where you still claim credits on your purchases.
Input taxed
Sales with no GST that also deny credits on related purchases.
Tax treatment (GST treatment)
The code that decides which activity-statement label a transaction feeds.
BAS (Business Activity Statement)
The form GST-registered businesses use to report GST and PAYG.
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Questions about this term
BAS Excluded (out of scope): common questions
- Which transactions are BAS Excluded?
- Those outside the GST system altogether: transfers between your own accounts, loan principal, owner drawings, the GST payment itself, income-tax payments and wages. None of them is a supply, so none appears on any label of the activity statement.
- Is BAS Excluded the same as GST-free?
- No — GST-free is a real sale or purchase reported with zero GST; BAS Excluded is money that is not a supply at all and is reported nowhere. Excluding a genuine GST-free sale understates G1, and including a loan repayment overstates purchases at G11, so the two errors point in opposite directions.
- Do wages disappear from the BAS entirely if they are BAS Excluded?
- Not entirely. Wages sit outside the GST section, but if you withhold PAYG they still belong at W1 and W2 on the same statement. Marking wages BAS Excluded and forgetting the W labels is the mistake this treatment invites.
- What do accounting platforms call BAS Excluded?
- The same treatment appears as “BAS Excluded”, “N-T” (not reportable) or “out of scope”, depending on the platform. Whatever the label, it marks a transaction that stays off every activity-statement label — $5,000 of drawings and a $1,200 GST payment change nothing, while $880 of stock bought the same week is a real purchase at G11.
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