Late BAS Penalties Australia 2026

General information only. Speak with a registered tax or BAS agent for advice.

A late Business Activity Statement (BAS) can trigger automatic penalties before the ATO sends you a single letter. Understanding the penalty structure — and the single most important principle for avoiding it — can save your business significant money.

BAS Due Dates: A Quick Reference

Before discussing penalties, it helps to know when your BAS is actually due. Due dates depend on your reporting cycle:

Reporting cycle	Due date
Monthly	21st of the following month (e.g., July BAS due 21 August)
Quarterly — self-lodger	28th of the month following the quarter end
Quarterly — via BAS/tax agent	Usually 25th of the second month after quarter end (extended)
Annual	31 October (or as notified)

Quarterly due dates for 2025–26:

Quarter	Period	Self-lodger due date
Q1	July–September 2025	28 October 2025
Q2	October–December 2025	28 February 2026
Q3	January–March 2026	28 April 2026
Q4	April–June 2026	28 July 2026

Note: the December quarterly BAS has a standard extended due date of 28 February (not 28 January). Monthly lodgers receive an extended deadline for December: 21 February instead of 21 January.

The Failure to Lodge Penalty

The same FTL penalty framework that applies to income tax returns also applies to BAS:

• 1 penalty unit = $330 in 2025–26
• Accrues at 1 unit per 28-day period overdue (or part thereof)
• Maximum: 5 penalty units ($1,650)

Overdue period	Penalty units	Penalty amount
Up to 28 days late	1 unit	$330
29–56 days late	2 units	$660
57–84 days late	3 units	$990
85–112 days late	4 units	$1,320
113+ days late	5 units (maximum)	$1,650

For small businesses (GST turnover under $1 million), the maximum is 5 units. For medium entities (turnover $1 million–$20 million), the maximum is 25 penalty units. For large entities (turnover over $20 million), the maximum is 100 penalty units.

The FTL penalty applies whether or not you have GST or PAYG to pay. A nil BAS that is lodged late still attracts the penalty.

General Interest Charge on Unpaid Amounts

If your BAS shows a net amount owing — GST, PAYG withholding, PAYG instalments — and you don’t pay by the due date, the General Interest Charge (GIC) applies from the day after the due date. The GIC rate is approximately 10.65% per annum for 2025–26 (set quarterly).

GIC is separate from the FTL penalty. You can receive both:

• FTL penalty for not lodging on time
• GIC for not paying on time

Or just one:

• FTL penalty if you lodge late but pay promptly once you do lodge
• GIC if you lodge on time but don’t pay

The Single Most Important Principle: Always Lodge on Time

The most important principle for BAS compliance is:

Lodge on time, even if you cannot pay.

If you lodge your BAS by the due date but cannot pay the amount owing, you avoid the FTL penalty entirely. You will still owe the GST/PAYG amount plus GIC from the due date — but you avoid the additional FTL penalty on top of that. The FTL penalty is pure cost, while GIC at least reflects the time value of money borrowed from the ATO.

If you know you cannot pay:

1. Lodge the BAS with your best figures by the due date
2. Contact the ATO before or on the due date (phone 13 11 42 for business enquiries)
3. Request a payment plan — the ATO can set up direct debit arrangements
4. Note that payment plans for amounts under certain thresholds may be interest-free; larger amounts typically accrue GIC during the plan

What If You Can’t Lodge Accurate Figures?

If your records aren’t ready, you have two options:

• Lodge with estimated figures and amend the BAS later once you have accurate numbers. This is better than lodging late.
• Request an extension by contacting the ATO or your BAS agent before the due date. Extensions are not automatic and are granted at the ATO’s discretion, but genuine circumstances (natural disaster, serious illness) are usually accommodated.

Amending a BAS is straightforward through the ATO’s online services. If you underestimated and the amended BAS shows more owing, GIC applies on the additional amount from the original due date. If you overestimated and the amendment shows less owing, you receive a refund or credit.

Penalty Remission

As with income tax FTL penalties, the ATO can remit BAS FTL penalties. The same principles apply: voluntary disclosure before ATO contact improves your position, first-time offenders are treated more leniently, and genuine circumstances outside your control are considered.

To request remission after receiving a penalty:

1. Lodge all outstanding BAS as soon as possible
2. Contact the ATO or your BAS agent
3. Explain the circumstances and request remission in writing (or via your agent)

Remission is not guaranteed but is commonly granted for first-time late lodgements.

Using a BAS Agent

A registered BAS agent can lodge BAS on your behalf with extended deadlines — typically four to six weeks beyond the self-lodger deadline. If BAS compliance is proving difficult to manage in-house, a BAS agent (or bookkeeper registered as a BAS agent) can take over the lodgement function and reduce your risk of late penalties.

Unlike tax agents, BAS agents are specifically licensed for GST and related obligations. Their fees are generally tax-deductible as a business expense.

Common Mistakes to Avoid

• Forgetting nil BAS: if your business had no GST activity in a quarter, you still need to lodge a nil BAS by the due date
• Assuming the ATO will contact you first: the FTL penalty accrues automatically — the ATO may not send a reminder before it appears on your account
• Waiting until you can pay before lodging: always lodge first, pay when you can (or arrange a plan)
• Missing the December extended date: the Q2 BAS (October–December) is due 28 February, not 28 January — this trips up many businesses

Compliance Checklist

• Set calendar reminders for all BAS due dates at the start of the financial year
• Lodge on time even with estimated figures — amend later if needed
• If you can’t pay, contact the ATO before the due date to arrange a payment plan
• If you receive an FTL penalty, request remission promptly
• Consider a registered BAS agent if BAS compliance is consistently challenging

Sources (verified)

• ATO failure to lodge penalty
• ATO BAS due dates
• ATO general interest charge
• ATO payment plans

Next Steps

• Estimate tax payable via the Tax Return Calculator
• Estimate BAS position via the BAS Calculator