What should I do if my BAS is overdue?

An overdue BAS is a common problem and it can be fixed. The key is to lodge as soon as you can, even if you can’t pay the amount owing, and to talk to the ATO or your registered BAS or tax agent.

Lodge even if you can’t pay

Lodging and paying are separate steps. You can lodge your BAS now and deal with the payment through a payment plan. The ATO says lodging on time means your information is up to date and gives you certainty about the amount you need to pay.

Leaving a BAS unlodged can make things harder:

• Penalties. The ATO can apply a failure to lodge penalty to a late BAS.
• Payment plans. The ATO expects you to lodge all your obligations on time while you are on a payment plan.
• Estimates. If a company doesn’t report PAYG withholding or GST by the due date, the ATO says it may make a reasonable estimate of the unpaid amount, and director penalties can apply to that estimate.
• Director penalties. For companies, the ATO says PAYG withholding and GST reported more than 3 months after the due date, or never reported, can only be remitted by paying in full if a director penalty notice is issued. See what is a director penalty notice.

Failure to lodge penalties

How the penalty is worked out

The ATO calculates a failure to lodge (FTL) penalty as one penalty unit for every 28 days, or part of 28 days, that the document is overdue, up to a maximum of 5 penalty units. The penalty applies to activity statements, as well as other documents such as tax returns and Single Touch Payroll reports.

The value of a penalty unit depends on when the failure happened. The ATO lists it as $364 on or after 1 July 2026, and $330 from 7 November 2024 to 30 June 2026.

Larger businesses pay more. The ATO multiplies the base amount by 2 for medium businesses and by 5 for large businesses, as it defines them.

An example

A small business lodges a BAS that was due after 1 July 2026 and is 40 days late. That is 2 periods of 28 days or part of 28 days. If the ATO applied the penalty, it would be 2 penalty units, or 2 × $364 = $728. This is an illustration only. The ATO decides whether to apply a penalty.

Warnings and notices

The ATO says it generally doesn’t apply penalties in isolated cases of late lodgement. Before it applies an FTL penalty, it will warn you by phone or in writing and issue a notice to lodge. If it does apply a penalty, the notice sets out the reason, the amount and the due date for payment, which is at least 14 days after the notice.

Asking for remission

You can ask the ATO to remit (reduce or cancel) an FTL penalty. Businesses can request this through Online services for business, by phone or by mail. The ATO asks you to explain the circumstances you want considered and provide supporting evidence, such as letters from tax professionals or financial statements. Your registered tax or BAS agent can make the request for you.

Interest on unpaid amounts

The general interest charge (GIC) applies to amounts not paid by the due date. It compounds daily and is not tax deductible from 1 July 2025. The ATO updates the GIC rate quarterly and publishes it on its GIC rates page. Paying sooner, or setting up a payment plan that clears the debt quickly, reduces the interest you pay.

Step by step

1. Find out what is overdue. Check your activity statements in Online services for business, or ask your registered BAS or tax agent.
2. Gather your records. Collect your sales, purchases and wages records for each overdue period.
3. Contact the ATO. If you can’t lodge by a coming due date, the ATO asks you to phone before the due date so it can work with you to reduce the risk of a penalty. The lodge and pay enquiry line is 13 11 42.
4. Lodge each overdue BAS. Lodge as soon as each one is ready, even if you can’t pay.
5. Deal with the amount owing. If you owe $200,000 or less, you may be able to set up a payment plan yourself. See ATO payment plans for business.
6. Ask about penalties and interest. If a penalty or GIC has been applied, you can ask the ATO to remit it.
7. Stay on track. Set reminders for future due dates and keep putting money aside for GST and PAYG withholding.

Help from a registered BAS or tax agent

A registered BAS or tax agent can prepare and lodge your overdue statements, talk to the ATO for you and set up a payment plan on your behalf. The ATO says the cost of managing your tax affairs is tax deductible, and that you may receive more time to lodge and pay if you use a registered agent.

The ATO also says it is your responsibility to meet your obligations, even if you use a tax agent. Stay in touch with your agent and check that lodgements are happening.

Important things to know

• Contact before the due date where you can. The ATO says phoning before the due date helps reduce the risk of a penalty.
• Lodging doesn’t mean you must pay straight away in full. You can lodge and then arrange a payment plan.
• Unlodged BAS can lead to estimates. An estimate may not reflect what you owe, and for companies it limits the options if a director penalty notice is issued.
• Keep new BAS up to date. A new late BAS can put an existing payment plan at risk.
• Get help if the problem is bigger than one BAS. If you are behind on several lodgements or can’t pay, see what happens if you can’t pay the ATO and talk to your accountant or registered tax agent.