Can I lodge my return now and pay later?

Why lodging on time matters even if you can't pay

People often hold off lodging because they know the result will be a bill. That gets it backwards. Not paying costs interest. Not lodging costs interest plus everything below.

• Failure to lodge penalty. One penalty unit ($364) per 28 days late, up to 5 units per return for individuals and small entities, more for larger ones.
• No payment plan. The ATO generally will not agree to a plan until lodgements are up to date.
• Lockdown director penalties. If a company's BAS is lodged more than three months late, any director penalty for that period can only be removed by paying it in full. Lodged on time, the same penalty can be remitted through a restructure or liquidation. See lockdown vs non-lockdown DPNs.
• Default assessments. Leave it long enough and the ATO estimates for you, with a 75% penalty attached.
• Firmer action risk. The ATO's own list of triggers for garnishees and other action is about engagement. An unlodged return reads as non-engagement.

Lodging a return that shows a debt you cannot pay is not an admission of anything. It is the step that turns an unknown problem into a manageable one.

When the money is actually due

For individuals lodging their own return between 1 July and 31 October, payment is due 21 November regardless of how early you lodge. Lodging in July does not bring the due date forward. If the assessment issues after 31 October, which covers most returns lodged through a tax agent, payment is due 21 days after the notice of assessment.

For BAS, lodgement and payment share a due date: the 28th of the month after each quarter, or the 21st of the following month for monthly lodgers, with about two extra weeks for quarterly online lodgers. You can still lodge the BAS on the due date and pay the amount later under a plan. Interest runs from the due date on whatever is unpaid, at 11.43% per year compounding daily. More on due dates at how long the ATO gives you to pay.

How to set up pay-later properly

1. Lodge. Wait for the notice of assessment so the debt appears on your account.
2. Pay what you can by the due date. Interest only runs on the unpaid part.
3. Set up a plan for the rest. Debts up to $200,000 can be arranged online in myGov or Online services for business. Above that, call 13 11 42. You can usually do this before the due date, so the plan starts with no reminders on file.
4. Ask about interest. GIC keeps accruing inside the plan unless remitted, and since 1 July 2025 it is not deductible. If the delay was caused by something outside your control, ask for GIC remission.

If the bill is bigger than any plan you could keep, lodging is still step one. Then read can't pay a tax bill for the other options, and ignoring ATO debt for why waiting is the one option that always costs more.

What to do next

1. Lodge the return or BAS by its due date, whatever the result.
2. Note the payment due date on the notice of assessment and pay what you can by then.
3. Set up a payment plan for the balance, online if the total is under $200,000, and ask about interest remission if your circumstances justify it.

More questions: 11 What happens if you don't pay questions answered · Full guide: Ignoring ATO debt