What happens if I lodge my BAS late in Australia?
Lodging your Business Activity Statement (BAS) late in Australia can incur penalties, including failure to lodge (FTL) penalties and general interest charges (GIC) from the Australian Taxation Office (ATO). Prompt action and communication with the ATO are crucial to minimise these consequences.
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How it works in practice
Consequences of Late Lodgement
If you lodge your Business Activity Statement (BAS) late in Australia, the Australian Taxation Office (ATO) may apply a failure to lodge (FTL) penalty. This penalty is calculated based on the size of your entity and how many days overdue the lodgement is. The longer the delay, the higher the penalty can be.
In addition to the FTL penalty, a General Interest Charge (GIC) will also apply to any outstanding tax amounts that are not paid by the due date. The GIC is calculated daily and compounds, significantly increasing the amount you owe over time. Late lodgement can also negatively impact your tax record and potentially lead to closer scrutiny from the ATO in the future.
Mitigating Penalties
The ATO has discretion to remit (reduce or cancel) penalties and GIC if you have a reasonable excuse for the delay and proactively engage with them. Showing a history of good compliance and a genuine effort to rectify the situation can also be taken into consideration.
Important exceptions
The ATO may remit penalties if you have a "reasonable excuse" for late lodgement, such as a serious illness, natural disaster, or an unavoidable accident. You may also qualify for a reduction if it’s a first-time minor offence, or if you voluntarily disclose the error before the ATO discovers it.
Using a registered tax agent can provide extended lodgement due dates, offering more flexibility. However, these extensions do not apply if you lodge directly.
What you should do now
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Lodge your overdue BAS immediately, even if you cannot pay the full amount due.
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Calculate and pay any tax liability as soon as possible to minimise general interest charges (GIC).
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Contact the ATO as soon as you realise you will be late to discuss your situation and potential penalty remission.
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Prepare any documentation or evidence to support a "reasonable excuse" if you intend to request penalty remission.
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Seek advice from a registered tax agent or accountant if you are unsure about your obligations or need help negotiating with the ATO.
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