When is BAS Due and How Late Lodgements Affect GST Credits and Tax Refunds
As a business owner in Australia, keeping track of your Business Activity Statement (BAS) due dates can feel overwhelming, especially when you’re focused on running your business and meeting your tax obligations. Missing a BAS due date doesn’t just cause stress-it can lead to penalties and affect your ability to claim Goods and Services Tax (GST) credits or receive a BAS refund. Many business owners have found themselves in the frustrating position of losing valuable tax refunds or GST reporting opportunities simply because they didn’t lodge their BAS on time.
Understanding BAS Lodgement Due Dates
Knowing when your BAS is due is the first step to meeting your BAS obligations and staying compliant with the Australian Taxation Office (ATO). Your reporting and payment cycle depends on your business’s annual turnover and GST turnover, which determines whether you report monthly, quarterly, or annually.
Before diving into the details, it’s helpful to know that your BAS reporting frequency and due dates are set by the ATO and are based on your business’s size and payment cycle. Whether you report monthly, quarterly, or annually, being aware of your BAS due date helps you lodge and pay on time, protecting your business’s cash flow.
Monthly BAS Due Dates
If your business’s annual turnover or GST turnover is $20 million or more, you must report monthly BAS. The monthly BAS due date is the 21st day of the month following the end of the taxable period. For example, your July monthly BAS is due by 21 August, and your December BAS is due by 21 January. If the BAS due date falls on a weekend or public holiday, you can lodge and pay on the next business day.
Monthly BAS reporting is also required for some businesses that have chosen this reporting and payment cycle, even if their turnover is below the threshold. Monthly reporting means you need to be organised and set calendar reminders to avoid missing your BAS due date.
Quarterly BAS Due Dates
Most small and medium businesses lodge a quarterly BAS. The quarterly BAS due dates for the 2024–2025 financial year are:
Quarter 1 (July–September 2024): 28 October 2024
Quarter 2 (October–December 2024): 28 February 2025
Quarter 3 (January–March 2025): 28 April 2025
Quarter 4 (April–June 2025): 28 July 2025
If you work with a registered tax agent or registered BAS agent, you may be eligible for an extended due date for your quarterly activity statements. This gives you extra time to lodge your BAS and pay your BAS, which can be especially helpful during busy periods.
Annual BAS Due Dates
If your GST turnover is less than $75,000 (or $150,000 for not-for-profit bodies), you may be able to report annually. The annual BAS is generally due by 28 February of the following year. Annual reporting can simplify your BAS obligations, but you still need to keep accurate records and lodge your BAS on time.
Annual reporting is also available for some businesses for specific taxes, such as the wine equalisation tax, luxury car tax, and fuel tax credits, provided you meet the eligibility criteria.
Working with a Registered Tax Agent or BAS Agent
Lodging your BAS through a registered tax agent or registered BAS agent can provide you with extended due dates and peace of mind. These professionals help you understand your BAS obligations, ensure you claim all eligible GST credits, and assist with PAYG withholding, PAYG instalments, and other tax obligations. They can also help you lodge your BAS online using the ATO Business Portal, making the process smoother and more efficient.
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Consequences of Late BAS Lodgements
While it might be tempting to put off lodging your BAS, late lodgements can have serious consequences for your business. Understanding these impacts can help you prioritise timely compliance and protect your business’s cash flow.
Failure to Lodge (FTL) Penalties
The Australian Taxation Office (ATO) charges a Failure to Lodge (FTL) penalty if you do not submit your Business Activity Statement (BAS) by the due date. This penalty applies whether you owe tax, are due a refund, or have no amount to pay. For small businesses, the penalty is one penalty unit for every 28 days the BAS is late, up to five units. If you are late more than once or continue to lodge late, penalties can increase. The ATO may also charge interest on any unpaid amounts.
Impact on GST Credits and BAS Refunds
One of the most significant consequences of late BAS lodgement is the potential loss of GST credits. If you don’t lodge your BAS within the required timeframe, you may lose the right to claim GST credits for that taxable period. The ATO enforces a strict four-year time limit for claiming GST credits, starting from the due date of the earliest BAS in which you could have claimed them.
For example, if you paid GST on a business purchase in July 2024 and your July monthly BAS was due on 21 August 2024, you must claim that GST credit before 21 August 2028. After this date, you can’t claim the credit, even if you lodge a revised BAS or request an amendment.
Late lodgement can also delay your BAS refund or tax return, impacting your business’s cash flow. The ATO may withhold refunds until all outstanding activity statements are lodged, including any quarterly activity statements or annual BAS.
Other Consequences
Late BAS lodgement can also affect your ability to access payment plans, government grants, and other support. If you regularly lodge late, the ATO may increase scrutiny of your business or require more frequent reporting and payment cycles.
The Four-Year Time Limit on GST Credits
Many business owners are unaware of the strict four-year time limit for claiming GST credits. This limit applies to all GST-registered businesses, regardless of their reporting and payment cycle.
How the Time Limit Works
The four-year limit starts from the due date of the earliest BAS in which you could have claimed the GST credit. This applies whether you report monthly, quarterly, or annually. If you account for GST on a cash basis, the clock starts when you make the payment. If you use the accruals method, it starts when you receive the invoice or make the payment, whichever comes first.
To claim your GST credits, you must include them in your BAS for the relevant taxable period and lodge your BAS before the four-year limit expires. If you miss this window, you lose the entitlement to claim those credits, and there is no discretion for extension.
Claiming Missed Credits
If you realise you’ve missed a GST credit, you can claim it in your next BAS, provided it’s within the four-year limit. Alternatively, you can lodge a revised BAS for the original period or submit a valid objection within the time frame. Keeping accurate records and setting calendar reminders can help you avoid missing out on valuable GST credits.
To avoid missing out on valuable GST credits for your business, read our article on How to Maximise GST Credits.
Strategies to Ensure On-Time BAS Lodgement
Meeting your BAS obligations doesn’t have to be stressful. With the right systems and support, you can lodge your BAS on time and protect your business’s cash flow.
Set Calendar Reminders and Organise Your Records
One of the simplest ways to stay on top of your BAS due dates is to set calendar reminders at the start of each financial year. Mark all due dates for monthly BAS, quarterly BAS, and annual BAS, as well as any extended due dates if you use a registered tax agent or BAS agent. Regularly update your accounting records, payment summaries, and invoices, so you’re ready to lodge and pay your BAS when the time comes.
Use Accounting Software and the ATO Business Portal
Accounting software can automate much of the BAS reporting process, sending reminders for upcoming due dates and helping you lodge your BAS online. The ATO Business Portal is another useful tool for lodging your own BAS, checking your reporting and payment cycle, and managing your tax obligations.
Work with a Registered BAS Agent or Tax Professional
Engaging a registered BAS agent or tax agent can make a big difference. These professionals help you prepare and lodge your BAS, identify all eligible GST credits, and ensure you meet all due dates for lodging. They can also assist with PAYG withholding, PAYG instalments, and other tax requirements, giving you more time to focus on running your business.
What to Do If You Miss a BAS Due Date
If you’ve missed a BAS due date, act quickly to minimise penalties and protect your GST credits. Lodge your outstanding BAS as soon as possible and contact the ATO or your tax agent to discuss your options. You may be able to set up a payment plan if you can’t pay your BAS in full. If you believe you have a valid reason for the late lodgement, you can request a remission of penalties.
Review your systems to identify what went wrong and how to prevent future late lodgements. Setting up better calendar reminders or working with a registered BAS agent can help you avoid similar issues in the future.
Conclusion
Staying on top of your BAS due dates is essential for your business’s financial health and compliance. Timely BAS lodgement helps you avoid penalties, claim all eligible GST credits, and receive BAS refunds without delay. By understanding your reporting and payment cycle-whether monthly, quarterly, or annually-and using tools like calendar reminders, accounting software, and the ATO Business Portal, you can make BAS reporting a routine part of your business.
At ACT Tax Group, we know that managing BAS obligations while running a business can be challenging. Our friendly, IPA-certified team is here to help you lodge your BAS on time, maximise your GST credits, and keep your business’s cash flow healthy. If you want support with your BAS, GST reporting, or any other tax obligations, reach out to us today. We’re here to make compliance easy, so you can focus on growing your business