Avoiding BAS Penalties: Tips for Busy Electrical Business Owners
Are you tired of Business Activity Statement (BAS) penalties eating into your profits or adding stress to your already packed week? For many electrical business owners in the ACT, keeping up with your BAS and other tax obligations can feel like just another job on a never-ending list. But with a few simple habits and the right support, you can avoid late fees, keep your cash flow healthy, and spend more time on the tools—or with your family—instead of worrying about paperwork.
This article breaks down what you really need to know about BAS, how to stay on top of your BAS deadlines, and practical ways to make sure the Australian Taxation Office (ATO) doesn’t catch you off guard.
Why BAS Penalties Hit Electrical Businesses Hard
When you’re running an electrical business, every dollar counts. A missed BAS due date can mean an unexpected penalty from the ATO, which often arrives at the worst possible time—right when you’re paying employee wages, suppliers, or trying to buy new gear. For sole traders and small teams, the admin often falls to the owner after hours, making it easy to miss a deadline.
Penalties for late business activity statements aren’t just a slap on the wrist. They can snowball quickly and impact your cash flow, especially if you’re already juggling quarterly BAS payments, PAYG withholding, and other tax obligations like Wine Equalisation Tax, Luxury Car Tax, or Fuel Tax Credits.
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What You’re Really Up Against: BAS Penalty Costs in 2025
Let’s keep it simple. If your business’s annual GST turnover is under $10 million, the ATO will charge a penalty for each 28-day period your BAS is late, up to a maximum of five periods. As of July 2025, each penalty period costs $330. That means a BAS that’s more than 113 days late could cost you $1,650 in penalties alone. And that’s before the ATO adds interest charges, which can stack up fast if you’re already tight on cash.
Here’s how quickly those penalties can add up for a small electrical business:
Days overdue | Penalty periods | Total penalty |
|---|---|---|
1–28 | 1 | $330 |
29–56 | 2 | $660 |
57–84 | 3 | $990 |
85–112 | 4 | $1,320 |
113+ | 5 (max) | $1,650 |
If you’re running a monthly BAS or have other activity statement lodgement cycles, the same rules apply—just more often.
Know Your BAS Reporting Cycle and Key Dates
Most electrical businesses in the ACT are on a quarterly BAS reporting cycle, which means you lodge your business activity statement four times a year. Your due dates for quarterly BAS are always the same:
July–September BAS: due 28 October (or 25 November if you use a registered BAS agent)
October–December BAS: due 28 February (no extension for agents)
January–March BAS: due 28 April (or 26 May with an agent)
April–June BAS: due 28 July (or 25 August with an agent)
If you’re on a monthly BAS, your statement is due by the 21st of the following month. The ATO also expects you to lodge and pay for PAYG withholding, PAYG instalments, and other tax obligations on these same cycles.
Set calendar reminders for each BAS due date and include a “prep” reminder two weeks before. This simple habit means you’re not scrambling at the last minute.
Three Practical Ways to Stay on Top of BAS and Avoid Penalties
Staying on top of your BAS obligations is essential for avoiding penalties and maintaining healthy cash flow. Here are three practical ways to help you manage your BAS efficiently and stay compliant with the ATO.
1. Use Accounting Software That Fits Your Business
Cloud-based accounting software like Xero or MYOB can save you hours each quarter. These tools connect to your bank account, making it easy to track income, expenses, and GST obligations. They can also help you prepare your BAS statement in minutes, not hours, and give you a clear picture of your cash flow and upcoming BAS payments.
2. Work With a Registered BAS Agent or Tax Professional
If you’re still spending your Sunday nights sorting receipts or worrying about BAS, it’s time to get help. A registered BAS agent or tax agent can handle your business activity statement lodgement, keep you updated on ATO regulations, and even deal with the ATO if something goes wrong. If you use a BAS agent and provide your info on time, you’re also protected from penalties if the agent makes a mistake or misses a deadline.
3. Keep Your Financial Records Up to Date
Don’t let paperwork pile up. Set aside time each week to match your supplier bills, check incoming payments, and update your books. This habit makes it much easier to lodge your BAS on time and helps you spot cash flow issues before they become a problem.
What To Do If You Miss a BAS Due Date
Life happens. If you miss a BAS due date because of illness, a family emergency, or something outside your control, contact the ATO or your registered agent as soon as possible. The ATO can sometimes reduce or remove penalties if you have a good reason and a solid history of lodging on time.
If you’re struggling to pay your BAS, the ATO can set up a payment plan to help you catch up without extra stress. Don’t ignore the problem—act early, and you’ll have more options.
Make BAS Lodgement Easier With These Habits
Making BAS lodgement part of your regular routine can help you avoid last-minute stress and keep your business running smoothly. Here are some practices that can help make BAS lodgement easier:
Open a separate account for BAS payments: Move a set percentage of every paid invoice into this account each week. This way, you’ll always have money set aside to pay GST, PAYG, or other tax obligations when your BAS is due.
Check your debtors list every week: Chase up late payments early so you’re not out of pocket when it’s time to pay GST or other taxes.
Review your cash flow monthly: Even if you’re on a quarterly BAS, a monthly check-in helps you spot issues before they snowball.
Ask your BAS agent about standard business reporting: This can make your BAS lodgement process even smoother and save you time.
Don’t Forget: BAS Covers More Than Just GST
Your business activity statement isn’t just about goods and services tax. Depending on your business, you might also need to report and pay:
PAYG withholding (for employee wages)
PAYG instalments (for your own tax)
Fuel tax credits (if you use eligible vehicles or equipment)
Wine equalisation tax or luxury car tax (if you sell these items)
Fringe benefits tax (if you provide perks to employees)
If you’re unsure what applies to your business, talk to a registered tax or BAS agent. They can help you understand your BAS obligations and make sure you’re not missing anything.
What About BAS Refunds and Annual BAS?
If you’ve paid more GST than you’ve collected, you might be eligible for a BAS refund. This can happen if you buy a lot of stock or equipment in one quarter. If your business is very small, you might be on an annual tax period and only need to lodge an annual BAS. Check with your tax professional to see what’s best for your situation.
Getting BAS Right Means Less Stress and More Time for Your Business
Avoiding BAS penalties isn’t about being perfect—it’s about building a few smart habits into your routine and getting the right help when you need it. Whether you’re a sole trader or running a crew, staying on top of your business activity statements, GST, PAYG, and all your other tax obligations—including things like withholding tax for your employees—means you can focus on growing your business, not worrying about the ATO.
If you’re not sure about any of these requirements, or you just want to take the pressure off, working with a registered tax agent can make a big difference. They can help you manage your BAS, keep your records in order, and make sure you’re meeting all your tax obligations without the stress.
Ready to get your evenings back and stop worrying about BAS penalties? Talk to ACT Tax Group about simple ways to streamline your BAS lodgement, keep your cash flow healthy, and make tax time just another day.