Watch out for fines for failure to lodge BAS on time

The ATO have prioritised their effectiveness at regulating Business Activity Statement (BAS) lodgements. If due dates are missed, you may be subject to the ATO’s penalty system, receiving a warning letter or even a fine.

When are BASs due?

Quarterly BASs are due for lodgement either quarterly or monthly dependent on your turnover and your business registration. If you lodge your BAS yourself, you must lodge on the 28th day following the respective BAS period (e.g. March Quarter BASs are due 28 April).

However, if the BAS is lodged through an agent, such as your local TaxAssist Accountant, you will be granted an extended due date two months following due date.

Businesses lodging monthly BASs have a due date of 21st day following the BAS period and do not receive the extended due date concessions afforded to quarterly lodgers.

If you are currently lodging BASs on a monthly-basis, you may want to consider changing to quarterly reporting for the convenience and extended lodgement periods. Contact your local TaxAssist Accountant who will be able to make this change for you. 

Lodgments to which the ATO apply Failure to Lodge (FTL) penalties

An automated penalty system applies FTL penalty to late-lodged returns, reports and statements, including:

• activity statements
• tax returns
• FBT returns
• PAYG withholding annual reports
• Single Touch Payroll reports
• annual GST returns and information reports
• taxable payment annual reports.

How are FTL penalties calculated?

The FTL penalty will depend on the infraction, size of the entity and the period of time since the due date for lodgment.

The ATO’s penalty system issues Penalty Units (currently $313 per unit if the infringement occurred on or after 1 July 2023).

‘Failure to lodge’ penalties are calculated based on the size of the entity and each 28-day period the tax return or BAS statement is overdue.

‘Small Entities’ which have a turnover of less than one million are issued one penalty unit per period overdue, which is capped at a maximum of five penalty units (currently $1,565).

In addition, the ATO applies a general interest charge for any unpaid tax liability or BAS statements from the date it was due to be paid until which time the amount in question is settled.

What to do if you miss the deadline

Don’t panic. The ATO generally does not apply penalties in isolated cases of late lodgement if you have a good lodgement history. Also, if there are extenuating circumstances impacting your ability to lodge (i.e. natural disaster or serious illness) you can apply to have the penalty and interest charges remitted. You can only request remission once you lodge the outstanding returns or statements.

If neither of these scenarios applies to you, then you will need to lodge and pay your Income Tax Return or BAS Statement (which will include any penalty and interest) as soon as possible.

How we can help

If you have any outstanding lodgments or an ATO debt or fine, arrange a consultation with your local TaxAssist Accountant. We will work with the ATO on a payment plan and could reduce the fine and interest you are paying.

Call 02 9174 5757 or make an enquiry here.

Date published 17 Feb 2024 | Last updated 22 Feb 2024

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.