What Happens If My BAS Is Late?
Missing a BAS deadline happens. It happens more than most business owners want to admit. But the consequences depend on how late you are, whether you have a history of late lodgements, and what you do next.
Here is what you need to know.
The BAS Deadline
For most small businesses, BAS is lodged quarterly. The standard due dates are:
- 28 October — July to September quarter
- 28 February — October to December quarter
- 28 April — January to March quarter
- 28 July — April to June quarter
If you lodge through a registered BAS Agent, you generally get an extended deadline. This is one of the practical benefits of using a registered agent — your lodgements are not due on the standard dates. We manage this for all our clients.
What Happens If You Miss the Deadline
Failure to Lodge penalty
The ATO can issue a Failure to Lodge (FTL) penalty for overdue BAS lodgements. The penalty is calculated in units. Each penalty unit is currently $330. The number of units depends on the size of your business and how long the lodgement is overdue.
For a small business, the penalty starts at one penalty unit ($330) for up to 28 days late, and increases by one unit for each additional 28-day period. It is capped at five units ($1,650) for most small businesses.
The ATO does not always apply the penalty immediately, especially for a first offence. But they can and do, particularly if you have a history of late lodgements.
General Interest Charge
If your BAS shows a tax liability and you do not pay it on time, the ATO will also charge the General Interest Charge (GIC) on the unpaid amount. The GIC rate changes quarterly and is currently around 11 to 12 per cent per annum, calculated daily.
This means the longer you wait, the more it costs. Not just the penalty — the underlying tax debt is also growing.
ATO Contact and Compliance Action
The ATO monitors lodgement history. A pattern of late lodgements puts your business on their radar. That can lead to contact from ATO compliance officers, garnishee notices on your bank account, or in serious cases, director penalty notices.
If you are a company director, you can be personally liable for unpaid PAYG withholding and superannuation if the company fails to meet its obligations. That liability does not go away if the company is wound up.
What You Should Do If Your BAS Is Overdue
Lodge it as soon as possible. The penalty for late lodgement is based on how late you are. Every day you wait makes it worse. Lodging late is significantly better than not lodging at all.
Pay what you can. If you cannot pay the full amount, pay what you can. The ATO will still apply interest on the outstanding balance, but showing willingness to engage reduces the risk of escalation.
Contact the ATO or get your BAS Agent to do it. If you are struggling to pay, the ATO has payment plan arrangements available for small businesses. You are far better off on a payment plan than ignoring the debt. A registered BAS Agent can negotiate this on your behalf.
Do not ignore ATO correspondence. If the ATO has written to you, respond. Ignoring letters does not make the problem go away. It makes it worse.
Can the Penalty Be Reduced or Waived?
Sometimes yes. The ATO can remit FTL penalties in certain circumstances — if this is your first offence, if you have a reasonable excuse, or if you are genuinely engaging with them to get things sorted.
A registered BAS Agent can make a formal request for remission on your behalf. We have done this for clients. It does not always work, but it is always worth asking, especially for a first offence or an isolated incident.
How We Help
If your BAS is overdue — whether it is one quarter or several years — we can help you get back on track.
We start by sending you a proposal through our client engagement software. Once you accept, you nominate Accounts Advantage as your registered BAS Agent through the ATO’s Online Services for Business at onlineservices.ato.gov.au/business. This gives us direct visibility over your ATO account. We can see exactly which BAS lodgements are outstanding, what is owing, and whether any penalties have already been applied — without you having to dig through paperwork or chase the ATO yourself.
From there we go through your records, prepare the outstanding BAS lodgements, and lodge them with the ATO on your behalf. We can also liaise with the ATO directly on any penalties or payment arrangements.
Once everything is up to date, we set you up on a clean monthly service so it never falls behind again.
At Accounts Advantage, our Managing Director is CPA qualified and all our team members hold a Certificate IV in Bookkeeping. Many of our team members are registered BAS Agents in their own right, in addition to the firm itself being a registered BAS Agent. That means you get qualified, accountable professionals handling your books. Not just someone who learned on the job.
Common Questions
Will the ATO automatically fine me if I lodge late?
Not always. The ATO has discretion on whether to apply the Failure to Lodge penalty. For a first offence they sometimes do not apply it at all. But they can, and the risk increases with each late lodgement. Do not rely on leniency.
What if I cannot afford to pay the BAS?
Lodge it anyway. The penalty for not lodging is separate from the penalty for not paying. Lodging on time and paying late is better than not lodging at all. Then contact the ATO or your BAS Agent about a payment arrangement.
Can I lodge my own overdue BAS?
Yes. You can lodge directly through the ATO’s Online Services for Business or through your accounting software. But if your books are behind or messy, you need to get them in order first or you risk lodging incorrect figures — which creates a different problem.
My bookkeeper never lodged my BAS. What do I do?
This is more common than people realise. You need to find out which quarters are outstanding, get your records in order, and lodge everything that is overdue. If your bookkeeper was unregistered and was charging you to lodge, that is a separate issue worth following up. We can help you work out what is missing and get everything lodged.
How far back can the ATO go?
For most tax obligations the standard review period is two years for individuals and small businesses with simple affairs, and four years for others. For fraud or serious non-compliance there is no time limit. The ATO can and does pursue old debts, particularly unpaid PAYG withholding and super.
Got a Late BAS? Let’s Get It Sorted.
Call our Loganholme office on 07 3209 8266 or 1300 400 105
We will tell you exactly where things stand and what needs to happen next. No judgement. Just practical help.