What Happens If You Lodge Your BAS Late? Understanding the Risks and How to Avoid Them

jabs53
2 days ago
2 min read

Why BAS Deadlines Matter

For Australian businesses registered for GST, lodging a Business Activity Statement (BAS) on time is a legal obligation. Your BAS reports GST, PAYG withholding, PAYG instalments, and other taxes.

Deadlines vary based on whether you lodge monthly, quarterly, or annually. Missing the due date can lead to costly penalties, interest and unnecessary stress.

Consequences of Lodging Your BAS Late

1. Failure to Lodge Penalties

The ATO can issue a Failure to Lodge (FTL) on time penalty. This is charged in penalty units, with each unit valued at $330 (as of July 2025). The penalty increases the longer your BAS remains outstanding.

2. Interest on Overdue Amounts

If your BAS has a payment due, the General Interest Charge (GIC) will apply from the original due date until the amount is paid. This rate is updated quarterly and is usually higher than standard loan interest rates.

3. Impact on Your Business Cash Flow

Lodging late often means paying a lump sum unexpectedly. This can reduce working capital, affect supplier payments, and put pressure on day-to-day operations.

4. ATO Compliance History

Repeated late lodgements can damage your compliance history with the ATO. This can reduce your eligibility for extensions or payment plans and increase your chances of an audit.

5. Non-deductible Expenses

From 1st July 2025, ATO penalities and interest became non-deductible expenses to business.

How to Stay on Track with BAS

Use Calendar Reminders: Mark all BAS deadlines well in advance.
Keep Records Up to Date: Regular bookkeeping means less stress at BAS time.
Engage a Registered BAS Agent: They can ensure timely lodgement and accurate reporting.
Set Aside Funds: Allocate GST and PAYG amounts regularly so you’re not caught short.

If You’ve Missed the Deadline

If your BAS is already late:

Lodge Immediately: Even if you can’t pay in full, lodging reduces penalties.
Contact the ATO: Discuss payment options or a repayment plan.
Seek Professional Help: A BAS Agent can negotiate with the ATO on your behalf.

Final Thoughts

Lodging your BAS late can quickly lead to penalties, interest charges, and compliance headaches. The best defence is being prepared — and that’s where a professional bookkeeper comes in.

At Love Bookkeeping, we help businesses stay compliant, stress-free, and financially confident. Let us take care of your BAS so you can focus on running your business.