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Missing a BAS (Business Activity Statement) deadline can feel overwhelming, but it’s not the end of the world. For Australian business owners, staying on top of BAS is crucial to maintaining compliance and avoiding unnecessary penalties. The good news? With the right guidance and steps, you can minimise the stress and even avoid repeat mistakes in the future.
In this guide, we’ll walk you through what happens if you miss a BAS deadline, what actions to take, and how to stay ahead in the future.
The BAS is a critical part of business operations, requiring you to report and pay your Goods and Services Tax (GST), Pay As You Go (PAYG) withholding, and other taxes. Late lodgement or failure to lodge can result in penalties and interest charges from the ATO (Australian Taxation Office). Beyond financial consequences, repeated late lodgements may flag your business for further scrutiny.
Staying on top of BAS deadlines ensures smooth cash flow, compliance with tax laws, and avoids disruptions in operations.
Missing a BAS deadline triggers the ATO's automated penalty system. Key consequences include:
• Failure to Lodge (FTL) Penalty: This fine is calculated based on penalty units. The longer you delay, the more it costs.
• General Interest Charge (GIC): The ATO applies interest to any outstanding amounts, compounding daily.
• Possible Audit Risks: Chronic late payments may increase the likelihood of an audit, creating additional stress for your business.
Understanding these implications is the first step to tackling a missed deadline.
If you’ve fallen behind, don’t panic. Here’s what to do:
1. Contact the ATO: Inform them of the delay and seek an extension where possible. Proactive communication can sometimes result in leniency.
2. Lodge ASAP: Even if you can’t pay the full amount immediately, lodge your BAS to minimise penalties and discuss an extension with either your Attune Advisory accounting partner or by contacting the ATO directly.
3. Apply for Penalty Remission: If you have a genuine reason for missing the deadline, you can request the ATO to reduce or waive penalties.
4. Set Up a Payment Plan: The ATO allows you to set up payment plans to settle your debt gradually.
Avoiding late lodgements in the future is all about systems and support:
• Automate Reminders: Use accounting software or set calendar alerts to remind you of BAS due dates. With Attune on your side, you’ll be part of our reminders where we may request information pertaining to your BAS in the lead up to lodgement time.
• Delegate the Task: Outsourcing BAS preparation and lodgement to the Attune team, frees you to focus on your core business – you won’t miss a BAS with help from our team.
• Regular Record-Keeping: Keep financial records up to date to avoid last-minute stress.
Late BAS lodgements can be a headache, but they don’t have to derail your business. At Attune Advisory, we specialise in helping business owners like you navigate the complexities of tax compliance. Whether you’ve missed a deadline or want to ensure it doesn’t happen again (or even once!), our team can assist with everything from lodgements to penalty remission requests.
Don’t let missed deadlines hold you back - reach out to Attune Advisory today for expert support in managing your BAS and staying compliant on 1300 866 113.
