Australian SMEs make multiple payments to the ATO every year. BAS, PAYG, GST instalments, income tax, fringe benefits tax. Each one has a due date, a specific amount, and a biller code for BPAY.
Most businesses already pay the ATO via BPAY. But they do it through the bank portal, outside every approval workflow and budget control they’ve set up for the rest of their spend.
That means some of the largest payments a business makes each quarter have no approval step, no budget allocation, and no audit trail beyond a bank statement line item.
Here are the five ATO payments you can bring inside your spend management workflow using BPAY, and why it matters for each one.
1. Business Activity Statement (BAS)
What it is: Your quarterly (or monthly) BAS covers GST collected, GST paid, PAYG withholding, and PAYG instalments. The net amount is what you owe the ATO or what the ATO owes you.
Why it matters: BAS payments are often the single largest quarterly outflow for an SME. A quarterly BAS of $15,000 to $50,000 is common for businesses in the 20 to 200 employee range. That’s a significant cash movement that deserves the same controls as any other payment.
How it works with BPAY: The ATO provides a BPAY biller code and a unique payment reference number (PRN) on every BAS notice. Set up the ATO as a BPAY supplier once using these details. Each quarter, create the payment for the lodged amount, route it through your approval workflow, and pay.
What you gain: An approval record showing who authorised the payment, automatic allocation to the correct budget, and a complete audit trail alongside every other business payment.
2. PAYG instalments
What it is: Pay As You Go instalments are regular prepayments toward your expected annual income tax liability. The ATO calculates the instalment amount or rate, and you pay quarterly.
Why it matters: PAYG instalments are easy to overlook because they’re a prepayment, not a bill for services received. They don’t come with an invoice. They just appear as a line on your activity statement or instalment notice. Without a structured workflow, they can be paid late or from the wrong budget.
How it works with BPAY: PAYG instalments have their own BPAY biller code and reference number, separate from your BAS. Set up a dedicated BPAY supplier for PAYG instalments so they’re tracked independently.
What you gain: Clear separation between BAS payments and PAYG instalments in your spend records. No more lumping tax payments together in a single bank transaction with no breakdown.
3. GST instalments
What it is: Some businesses pay GST by instalments rather than calculating the exact amount each quarter. The ATO notifies you of the instalment amount, and you pay quarterly.
Why it matters: GST instalments are a fixed amount set by the ATO, which makes them predictable. But “predictable” doesn’t mean “visible.” If the payment happens in the bank portal, finance may not see it until the bank feed lands in the accounting system days later.
How it works with BPAY: Like other ATO obligations, GST instalments come with a BPAY biller code and reference number. Set up a separate BPAY supplier for GST instalments.
What you gain: Real-time visibility into when the payment was made, who approved it, and which budget it was allocated to. No waiting for the bank feed.
4. Income tax
What it is: Annual income tax for companies, trusts, and other entities. The ATO issues a notice of assessment with the amount owing and a due date.
Why it matters: Income tax is typically the largest single payment a business makes to the ATO each year. It can run into six figures for mid-sized SMEs. A payment of that size should have an approval step and a clear record, not just a bank transfer made by whoever has the login.
How it works with BPAY: The ATO provides a BPAY biller code and payment reference number on the notice of assessment. Set up a BPAY supplier for income tax payments.
What you gain: An approval workflow for your largest annual tax payment. The CFO or finance director approves the payment before it’s made, and the record is captured automatically.
5. Fringe Benefits Tax (FBT)
What it is: FBT applies to non-cash benefits provided to employees, such as car parking, entertainment, or salary-packaged items. The FBT year runs from 1 April to 31 March, with the annual return and payment due in the following months.
Why it matters: FBT is often managed by the accountant or tax agent, with the payment instruction passed to finance as a one-liner: “Pay $X to the ATO by [date].” Without a structured workflow, the payment happens in the bank with no connection to the FBT calculation or the budget it should come from.
How it works with BPAY: FBT payments have their own BPAY biller code and reference number. Set up a dedicated BPAY supplier for FBT.
What you gain: A clear record linking the FBT payment to the approval, the budget, and the date. Useful for annual FBT reviews and audits.
The pattern: set up once, pay with controls every time
All five ATO payments follow the same pattern inside a spend management platform with BPAY:
- Set up the ATO obligation as a BPAY supplier using the biller code and reference number from the ATO notice
- Create the payment when the amount is confirmed (after lodgement or when the notice arrives)
- Route through approvals so the right person authorises the payment before it’s made
- Pay via BPAY with the full audit trail captured automatically
Once each supplier is set up, future payments are fast and repeatable. No bank logins. No missing context. No payments made outside your controls.
A note on tax obligations
This article covers the payment workflow for ATO obligations, not the tax calculations, lodgement requirements, or compliance obligations themselves. For guidance on BAS lodgement, GST, PAYG, income tax, or FBT, consult your accountant or registered tax agent. The ATO website provides detailed guidance on all business tax obligations.
Why this matters beyond compliance
Routing ATO payments through your spend platform isn’t just about process. It’s about visibility.
When tax payments happen in the bank, they’re invisible to the rest of the business until the bank feed arrives. Finance can’t see the cash impact in real time. Budget owners don’t know the payment has been made. The CFO finds out from the bank statement.
When tax payments flow through the same platform as every other payment, finance sees the full picture: supplier payments, utility bills, ATO obligations, all in one place, all with approvals and budget allocations.
For businesses that make five or more ATO payments a year (and most SMEs make at least that many), the cumulative effect is significant. Every payment is visible, approved, and recorded. No blind spots.
