Quick answer
If you are behind on BAS, lodge the outstanding statements first, even if you cannot pay them yet. Lodged BAS show lenders and the ATO the real position, reduce penalty risk and keep director penalty options open. Once the debt is known, finance can clear it, either unsecured for smaller balances or property-secured for larger ones.
Key points
- Lodge outstanding BAS even if you cannot pay
- Unlodged BAS worry lenders more than unpaid ones
- Late reporting of PAYG can restrict director penalty options
- Finance can clear GST and PAYG arrears once known
How BAS falls behind
The pattern is familiar. A busy quarter, a bookkeeper who left, a big client paying late, and the BAS gets pushed back. Then the next one is due, and the first still is not done. Before long two or three quarters are outstanding, nobody is quite sure what is owed, and the stress of opening the ATO portal makes it easier to keep putting it off.
Why lodging comes first
| If you lodge but cannot pay | If you do not lodge |
|---|---|
| The ATO knows the amount and can discuss a plan | The ATO may estimate the debt |
| Lenders can see the real liability | Lenders see an unknown risk |
| PAYG is reported on time | Late reporting can restrict director penalty options |
| Penalties limited to late payment | Failure-to-lodge penalties may apply |
Lodging an accurate BAS on time, or as soon as possible, is almost always better than waiting until you can pay.
Then deal with the debt
Once lodged, you have options:
- An ATO payment plan if you can keep it alongside new BAS.
- Unsecured finance to clear a modest balance. See ATO tax debt loans.
- Property-secured finance for larger balances, of $20,000 up to $5,000,000, with no valuation needed before approval.
Compare a plan with a loan using the ATO debt options calculator.
Stop it happening again
- Move GST and PAYG withholding into a separate account weekly.
- Lodge on time even when you cannot pay in full.
- Review cash flow before each BAS is due.
Our guide to GST and BAS cash flow planning sets out a simple system.
An illustrative example
A landscaping business fell three quarters behind on BAS during a period of rapid growth. Once the outstanding statements were lodged, the combined GST and PAYG balance was clear. An unsecured loan paid it in full, and the owner set up a separate tax account that a percentage of every deposit now flows into.
A note on the general interest charge
The ATO generally charges interest on overdue amounts, which compounds over time. That is one reason a growing BAS debt can become much larger than the original shortfall, and why clearing it sooner can save money.
Get help clearing BAS arrears
Make a quick enquiry and tell us how many BAS are outstanding and the approximate balance. Enquiries carry no credit check, a person checks it, and there is no spray and pray. Sort out your BAS debt.
Frequently asked questions
Is it worse to not lodge or not pay?
Not lodging is generally worse. It hides the real position, can attract failure-to-lodge penalties and can make director penalty notices harder to deal with.
Can I get a loan with unlodged BAS?
It is much harder. Most lenders want to see lodged BAS. Lodge first, then apply.
When are quarterly BAS due?
Quarterly BAS are generally due on 28 October, 28 February, 28 April and 28 July, with different dates if a tax agent lodges for you. Check the ATO website for your dates.
Can finance pay BAS arrears directly?
Yes. Many loans pay the ATO directly as part of settlement.
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