Avoiding ATO Penalties: What Happens When You Miss Your BAS Due Date in 2025

Consequences of Missing Your BAS Due Date

Failing to lodge your Business Activity Statement (BAS) by the due date can lead to several consequences, whether you are lodging your own BAS or working with a registered agent. Missing deadlines for BAS reporting, whether quarterly or monthly, can result in significant financial and reputational repercussions.

Failure to Lodge (FTL) Penalties

The ATO imposes Failure to Lodge penalties based on your business’s annual turnover and how overdue the lodgement is. As of November 2024, penalty units have increased to $330 each. For small entities with an annual turnover under $1 million, one penalty unit ($330) applies for every 28 days late, capped at five units ($1,650). Medium entities with a turnover between $1 million and $20 million incur two penalty units ($660) per 28 days late. Large entities with a turnover over $20 million face five penalty units ($1,650) per 28 days late. These penalties apply regardless of whether you lodge BAS quarterly or annually.

Additional Financial Impacts

Late lodgement triggers other consequences such as General Interest Charges (GIC) on unpaid tax liabilities, including amounts related to luxury car tax, wine equalisation tax, and fuel tax. It can also lead to the loss of tax compliance status, affecting eligibility for government contracts or benefits for not-for-profit bodies. Strain on cash flow may occur due to mounting penalties and delayed payments, potentially delaying any BAS refund you may be entitled to. Additionally, reputational damage with suppliers or lenders can arise if you fail to pay GST or meet other obligations like submitting payment summaries on time.

To avoid these issues, it’s crucial to lodge BAS by the required due date and consider strategies like making payments early when possible. Whether preparing a December activity statement or managing a more complex reporting cycle, staying proactive helps maintain compliance and protects your business’s financial health.

ATO’s Compliance Focus in 2025

For this year, the ATO has identified key compliance areas:

1. Misuse of small business concessions.

2. Incorrect use of business funds for personal purposes.

3. Non-compliance in industries like ride-sourcing services.

Staying informed about these focus areas can help businesses proactively address potential issues before they escalate.

Strategies to Avoid Missing Your BAS Due Dates

Avoiding penalties begins with proactive planning. Here are practical strategies:

Set Calendar Reminders for Key Dates

Mark all relevant lodgement periods in a dedicated calendar. Set multiple reminders—14 days, seven days, and three days before each due date—to avoid last-minute stress.

Maintain Accurate Records

Organized bookkeeping simplifies GST reporting and ensures all transactions are accounted for during your reporting period. Consider using accounting software that tracks GST obligations automatically.

Engage a Registered Tax or BAS Agent

Working with a registered tax professional or BAS agent provides:

• Extended due dates for quarterly activity statements

• Expert guidance on GST reporting and payment cycles

• Reduced risk of errors during preparation

• Strategic advice tailored to your business’s annual tax period

Leverage Financial Management Software

Modern software solutions streamline GST tracking, PAYG instalments, and other aspects of BAS reporting. Many platforms also include automated reminders for lodgement periods.

What If You Miss a Lodgement Period?

If you’ve missed a due date, take immediate action to minimise penalties and maintain compliance. Lodge your BAS immediately, whether it’s monthly BAS reporting or annual reporting, as the sooner you lodge, the fewer penalties you’ll incur. Contact the ATO to explain any extenuating circumstances that caused the delay, especially if your business is voluntarily registered for GST. Pay any outstanding amounts promptly to reduce additional interest charges and request penalty remission by providing documentation supporting your request if applicable. Finally, review your processes to identify gaps in your current system and implement improvements to ensure timely submissions, whether you lodge BAS annually or follow a monthly reporting cycle.

How ACT Tax Group Can Help You Stay Compliant

ACT Tax Group specializes in helping Australian businesses manage their Business Activity Statement (BAS) obligations effectively. Our services include preparing and lodging quarterly BAS reporting, monthly BAS, or annual BAS submissions based on your business’s reporting and payment cycle. We assist in setting up calendar reminders for key dates to ensure you never miss a deadline and negotiating payment plans with the ATO if you’re unable to pay BAS liabilities in full. Additionally, we optimize GST reporting strategies to enhance cash flow management and ensure accurate BAS payments. Our team also provides tailored advice based on your business’s annual GST turnover, taxable periods, and specific compliance needs.

We understand that staying on top of BAS obligations can be challenging amidst competing priorities. That’s why our team is committed to simplifying compliance while supporting your business’s financial growth.

Conclusion

Avoiding ATO penalties by meeting your BAS due dates in 2025 requires preparation, awareness of key dates, and potentially professional assistance from a registered tax agent or BAS agent. Timely lodgement not only prevents financial strain but also supports effective cash flow management throughout the financial year.

Remember that compliance isn’t just about avoiding penalties—it’s about maintaining sound financial practices that contribute to long-term success. At ACT Tax Group, we’re here to help you navigate every step of your reporting and payment cycles with confidence.