Staying on top of your BAS lodgement due dates for the 2024-25 fiscal year is crucial for maintaining your business’s financial health and compliance. Missing these deadlines can lead to financial penalties, business disruptions and damage your business’s reputation.
In this comprehensive blog, we’ll outline these critical dates and delve into the consequences of missing them. Whether you’re an experienced business owner or just starting out, this blog will serve as your essential guide to managing BAS lodgement for 2024-25 effectively.
For more detailed information and updates, you can visit the Australian Taxation Office (ATO) website.
Key points
- The ATO states that businesses must submit their BAS to ensure accurate reporting of taxes like GST and PAYG instalments.
- Lodging your BAS on time is essential for effective cash flow management and improved financial planning.
- BAS lodgement due dates can vary based on your reporting cycle (monthly, quarterly, annually) and may be extended during natural disasters or other extraordinary circumstances.
- If you miss your tax lodgement obligations, the ATO may impose a Failure to Lodge (FTL) on-time penalty. This will continue to be a strong focus for the ATO as they seek to impose stricter compliance policies on business owners.
Importance of BAS lodgements
- Accurate Tax Reporting: Ensures accurate reporting of GST, PAYG instalments, and other taxes to the ATO.
- Cash Flow Management: Helps manage your business’s cash flow effectively by keeping track of tax liabilities.
- Avoid Penalties: Prevents the imposition of Failure to Lodge (FTL) on-time penalties by the ATO.
- Financial Planning: Facilitates better financial planning and decision-making for your business.
- Compliance: Maintains compliance with ATO regulations and avoids legal issues.
- Eligibility for Refunds: Ensures you can claim any eligible tax refunds or credits promptly.
- Business Reputation: Upholds your business’s reputation by demonstrating financial responsibility and reliability.
GST and BAS reporting
The ATO outlines three GST reporting and payment cycles based on your business’s GST turnover:
- Monthly Reporting: Required if your GST turnover is $20 million or more. You must report and pay GST monthly and lodge your activity statement electronically.
- Quarterly Reporting: Applicable if your GST turnover is less than $20 million, unless the ATO has notified you to report monthly. This is the most common reporting cycle for small to medium-sized businesses.
- Annual Reporting: Available if you are voluntarily registered for GST and your GST turnover is under $75,000 ($150,000 for not-for-profit bodies). This option is suitable for businesses with lower turnovers.
You can change your reporting cycle if your GST turnover changes or if you prefer a different cycle. Changes can generally take effect from the start of the next quarter or year.
BAS Lodgement methods – Full Reporting vs Simpler BAS
The Australian Taxation Office (ATO) requires businesses to lodge their Business Activity Statements (BAS) to report and pay various taxes, including GST and PAYG instalments. The due dates for BAS lodgement depend on your reporting cycle and whether you use the full reporting method or the Simpler BAS method.
Full Reporting vs Simpler BAS
- Full Reporting Method: This method is mandatory for businesses with a GST turnover of $10 million or more. It requires detailed reporting of GST amounts, including total sales, export sales, other GST-free sales, capital purchases, and non-capital purchases.
- Simpler BAS Method: This method is available for small businesses with a GST turnover of less than $10 million. It simplifies the reporting process by only requiring the reporting of total sales, GST on sales, and GST on purchases.
BAS Lodgement Due Dates
The due dates for BAS lodgement vary based on the reporting cycle:
Reporting Cycle | Period Covered | Due Date |
Monthly | Each calendar month | |
Quarterly | July, August, September | |
October, November, December | ||
January, February, March | ||
April, May, June | ||
Annual | Entire financial year | 31 October (if not required to lodge a tax return) or 28 February (if required to lodge a tax return)3 |
If the due date falls on a weekend or public holiday, you can lodge and pay on the next business day.
Additionally, if you lodge your BAS online, you may be eligible for an extra two-week extension for quarterly lodgements.
Changing your BAS reporting period
If your business circumstances change, you may need to adjust your BAS reporting cycle. Whether you want to switch from monthly to quarterly reporting or vice versa, the process is straightforward. You can request a change through the ATO’s Online Services for Business or by contacting your registered tax or BAS agent.
It’s important to note that changes typically take effect from the start of the next quarter or financial year. Adjusting your reporting cycle can help align your tax obligations with your business’s cash flow and operational needs, ensuring smoother financial management.
What are the consequences of missing a lodgement deadline?
If you miss a BAS lodgement deadline, the ATO may impose a Failure to Lodge (FTL) on-time penalty. The penalty amount varies based on the size of your business and the duration of the delay.
For small entities, the penalty is calculated at one penalty unit for each 28-day period (or part thereof) that the BAS is overdue, up to a maximum of five penalty units.
Additionally, the ATO may send reminders via SMS, letters, or phone calls to prompt you to meet your lodgement obligations.
Persistent non-compliance can lead to more severe actions, such as legal proceedings to recover outstanding amounts. To avoid these penalties and complications, it’s essential to lodge your BAS on time or seek assistance if you’re unable to meet the deadline.
What should you do if you miss a lodgement deadline?
If your business misses a BAS lodgement deadline, here are the steps you should take:
- Contact the ATO or your tax agent: Reach out to the ATO as soon as possible to inform them of the missed deadline and explain the situation. This can help mitigate potential penalties.
- Lodge the BAS Immediately: Submit your BAS as soon as you can, even if it’s late. The sooner you lodge, the lower the potential penalties.
- Pay Any Outstanding Amounts: If you owe any GST or other taxes, make the payment promptly to avoid additional interest charges.
- Review Penalties: Check if any Failure to Lodge (FTL) on-time penalties have been applied. The ATO may impose penalties based on the size of your business and the length of the delay.
- Request Remission: If you have a valid reason for the delay, you can request a remission of the penalties. Provide any supporting documentation to strengthen your case.
- Set Up Reminders: To avoid missing future deadlines, set up reminders in your calendar or use the ATO app to receive notifications.
- Seek Professional Help: If you’re struggling with BAS lodgements, consider consulting a registered tax or BAS agent. They can provide guidance and help you stay compliant.
- Review Your Processes: Evaluate your current processes for preparing and lodging BAS to identify any areas for improvement. Implement changes to ensure timely lodgements in the future.
By taking these steps, you can address the missed deadline and minimise any negative impact on your business.
Failure to Lodge (FTL) Penalty
The Australian Taxation Office (ATO) imposes a Failure to Lodge (FTL) on-time penalty when businesses fail to meet their tax lodgement obligations by the due date. This penalty is designed to encourage timely lodgement and compliance with tax laws.
How the ATO Considers Circumstances
The ATO recognizes that there may be valid reasons for late lodgement and considers individual circumstances before applying penalties. Generally, the ATO does not impose penalties for isolated cases of late lodgement. If you fail to lodge, the ATO will typically warn you by phone or in writing before applying the penalty. If a penalty is applied, you will receive a written notice detailing the reason for the penalty, the amount, and the due date for payment (at least 14 days after the notice is given)1.
Penalty Amount
The amount of the FTL penalty depends on the size of the entity and the duration since the lodgement due date:
- Small Entities: One penalty unit for each 28-day period (or part thereof) that the return or statement is overdue, up to a maximum of five penalty units. As of 1 July 2023, one penalty unit is $313.
- Medium Entities: The penalty unit is multiplied by 2.
- Large Entities: The penalty unit is multiplied by 5.
- Significant Global Entities: The base penalty amount is multiplied by 500
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Disclaimer: We endeavour to make sure the information provided in this guidance is up to date and accurate. Please note, that the information is only intended to be a guide, with a general overview of information. This guidance is not a comprehensive document and should not be interpreted as legal advice or tax advice. The information is general in nature. You should seek the assistance of a professional opinion for any legal and tax issues related to your personal circumstances.
