Tax & BAS
What Happens If You Miss a BAS Deadline in Australia
Missed your BAS due date? The penalties, the interest, and what to do next to minimise the damage.
You've missed your BAS deadline. Maybe by a day, maybe by a month, maybe by several quarters. The immediate question is: what happens now?
The short answer: it's not catastrophic, but it does cost you money the longer you leave it. The ATO charges penalties for late lodgement and interest on any unpaid amounts, and both start accumulating from the day after the due date. The best thing you can do right now is lodge as soon as possible.
The penalties
There are two separate costs for a late BAS: a penalty for not lodging on time, and interest on any money you owe.
Failure to Lodge (FTL) penalty
The ATO charges a flat penalty for each 28-day period (or part of a period) that your BAS is overdue. For small entities (turnover under $10 million), the current penalty unit rate works out to:
| How late | Penalty |
|---|---|
| 1-28 days | $313 |
| 29-56 days | $626 |
| 57-84 days | $939 |
| 85-112 days | $1,252 |
| 113+ days | $1,565 (capped) |
The penalty caps at five units ($1,565). So even if your BAS is six months or a year overdue, the FTL penalty doesn't go above $1,565 per BAS.
One important detail: the penalty is for late lodgement, not late payment. If you lodge on time but pay late, you avoid the FTL penalty entirely. You'll still owe interest on the unpaid amount, but that's cheaper than the penalty plus interest.
Tip
If you can't pay what you owe, lodge the BAS anyway. Lodging on time with $0 payment avoids the FTL penalty. You can sort out the payment separately, including setting up a payment plan with the ATO.
General Interest Charge (GIC)
On top of the penalty, the ATO charges interest on any unpaid tax from the day after the due date. The General Interest Charge is currently around 11% per annum, calculated daily.
On a $3,000 BAS debt, that's roughly $0.90 per day, or about $27 per month. Not enormous, but it compounds and it's not tax-deductible.
The GIC applies to:
- Unpaid GST from your BAS
- Unpaid PAYG instalments
- Any other amounts reported on the BAS that haven't been paid
What happens when you miss a deadline
The ATO doesn't send debt collectors on day one. Here's the typical sequence:
Days 1-14 overdue: Nothing visible happens. The ATO's systems flag your BAS as overdue but no action is taken yet. The FTL penalty and GIC are accumulating in the background.
2-4 weeks overdue: You'll receive a reminder notification, usually through myGov or the ATO app. This is a prompt to lodge, not a formal penalty notice.
28+ days overdue: The first FTL penalty unit ($313) is formally applied. You may receive a more pointed reminder.
Multiple quarters overdue: The ATO escalates. You'll receive formal correspondence and potentially a phone call. If you have multiple overdue BAS lodgements, the penalties stack. Two quarters overdue at 28+ days each = $626+ in penalties.
Persistent non-lodgement: The ATO can issue a default assessment (estimating what you owe, usually generously in their favour), pursue debt recovery, or in extreme cases, cancel your ABN. This is rare and typically only happens after repeated attempts to contact you.
Warning
A default assessment is bad news. The ATO estimates your income and GST based on whatever data they have (bank deposits, previous returns), and they don't give you the benefit of the doubt. The estimated amount is almost always higher than what you owe, and you need to lodge the real BAS to dispute it.
What to do right now
If you've missed a deadline, here's the priority order:
Even if it's months late, lodge it now. Every 28-day period you wait adds another $313 in penalties. If your records aren't perfect, lodge your best estimate and amend later. A roughly correct BAS lodged today is better than a perfect one lodged in three months.
If you can pay the full amount, pay it immediately to stop the GIC from accumulating. If you can't afford the full amount, pay whatever you can. Partial payment reduces the balance the interest is calculated on.
If the amount is more than you can pay at once, the ATO offers payment plans. You can set one up online through myGov (for debts under $200,000) or by calling the ATO. Payment plans stop further collection action and give you structured instalments. Interest still accrues, but penalties for non-payment stop.
The ATO can reduce or waive FTL penalties if you have a reasonable excuse. First-time offences, serious illness, natural disasters, and clear administrative errors are all grounds for remission. You can request this online through myGov or by phone. Don't assume you'll be denied. The ATO remits penalties more often than people expect, especially for first-timers who lodge promptly after the miss.
How to request penalty remission
If this is your first missed BAS (or you have a good reason), ask for the penalty to be waived.
The ATO considers:
- Your compliance history. Clean record with a one-off miss? Good chance of remission
- The reason for the delay. Illness, family emergency, reliance on a tax agent who dropped the ball. "I forgot" is weaker but sometimes still works for first offences
- How quickly you fixed it. Lodging and paying within a few days of the deadline carries more weight than months of delay
- Whether you contacted the ATO proactively. Calling before they chase you signals good faith
You can request remission through the ATO's online services, by phone (13 28 66), or in writing. If requesting online, look for "Penalties" in your ATO account and follow the prompts to object.
Preventing it next time
The quarterly BAS deadlines are:
| Quarter | Period | Due date |
|---|---|---|
| Q1 | July to September | 28 October |
| Q2 | October to December | 28 February |
| Q3 | January to March | 28 April |
| Q4 | April to June | 28 July |
If you use a registered tax or BAS agent, you may get an automatic extension of up to four weeks on some quarters. Check with your agent.
Three things that prevent missed deadlines:
- Calendar reminders. Set them two weeks before each due date, not on the due date. Two weeks gives you time to reconcile your records and gather any missing information
- Monthly reconciliation. If you spend 30 minutes at the end of each month matching transactions, your quarterly BAS takes 15 minutes to complete. Most missed deadlines happen because the bookkeeping has piled up and feels overwhelming
- Accounting software. Xero, MYOB, and similar tools track your BAS obligations, send reminders, and can lodge directly to the ATO. The subscription ($25-60/month) pays for itself in avoided penalties alone
Key takeaway
A late BAS isn't the end of the world. Lodge it as soon as you can, pay what you're able to, and ask for the penalty to be waived if you have a reasonable excuse. The ATO would rather you lodge late than not at all. What gets expensive is ignoring it.
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Frequently asked questions
Can I lodge a BAS late without penalty?
Only if you lodge within the due date (including any agent extension). After that, the FTL penalty applies automatically. However, you can request remission after the fact, and the ATO frequently waives penalties for first-time offences with a clean compliance history.
What if I can't afford to pay my BAS?
Lodge it anyway. The FTL penalty is for late lodgement, not late payment. Once lodged, set up a payment plan through myGov or call the ATO. They're generally accommodating for small businesses who communicate early.
I have multiple overdue BAS lodgements. What happens?
Each overdue BAS attracts its own FTL penalty (up to $1,565 each) plus GIC on each unpaid amount. If you have several quarters outstanding, the total can add up quickly. Lodge them all as soon as possible and call the ATO to discuss a payment plan and penalty remission for the lot.
Does a late BAS affect my credit rating?
Not directly. The ATO doesn't report to credit bureaus for standard tax debts. However, if the debt escalates to the point where the ATO issues a Director Penalty Notice (for companies) or takes legal action, it can impact your credit. For sole traders with a one-off late BAS, this is extremely unlikely.
My accountant missed the deadline. Am I still liable?
Yes. The obligation to lodge on time is yours, even if you've engaged an agent. However, "reliance on a tax agent" is a recognised ground for penalty remission. If your agent missed the deadline due to their error, the ATO will generally waive the penalty. Keep records of your engagement with the agent, and consider raising the issue with them directly.
Is the GIC tax-deductible?
No. The General Interest Charge on late tax payments is not tax-deductible. Neither are FTL penalties. These are costs you can't claim back. Another reason to lodge and pay on time.
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