What is the penalty for lodging a BAS late?
Short answer
A late BAS attracts the failure to lodge penalty: $364 for every 28 days, or part of 28 days, it is late, capped at $1,820 per statement for a small business, for statements due from 1 July 2026. On top of that, general interest charge runs on any unpaid GST or PAYG withholding from the original due date. Both can be reduced, and our penalty remission guide explains how.
What a late BAS actually costs
Two things happen when a BAS is lodged late. The failure to lodge penalty is a flat charge based on how late the statement is, regardless of what was on it. A BAS due 28 October and lodged in late March is four blocks of 28 days plus part of a fifth, so five units: $1,820 for a small business, $3,640 for a medium one. See how the late lodgement penalty is calculated for the full table.
Separately, any GST, PAYG withholding or PAYG instalment on the statement was due on the original date. General interest charge at 11.43% a year, compounding daily, runs from the day after that date until the amount is paid. Lodging late does not push the payment date back.
The hidden costs for company directors
For a company, a late BAS carries a cost that is worse than the penalty. If a BAS is lodged more than 3 months after its due date, any director penalty for the PAYG withholding and GST on it becomes a lockdown director penalty. A lockdown penalty can only be removed by paying it. Putting the company into a payment plan, administration or liquidation no longer helps. This is why lodging every BAS within 3 months of its due date matters even when the company cannot pay a cent of it.
Unlodged BAS also make it very hard to get a payment plan, because the ATO does not know the size of the debt, and they invite a default assessment based on the ATO's own estimate.
Behind on BAS lodgements?
Get the penalty and the debt dealt with together. It is free to ask.
If you cannot pay the BAS, lodge it anyway
Lodging and paying are separate. Lodging on time with nothing paid avoids the penalty and the lockdown risk, keeps the door open to a payment plan and shows the ATO you are engaging. Not lodging because you cannot pay is the most expensive choice available. If the amount owing is a problem, the options for BAS debt start with a payment plan and go from there.
Getting the penalty removed
Lodge everything outstanding, then ask the ATO to remit the penalty. An isolated late BAS from a business with a clean history is routinely remitted, often on the phone on 13 11 42. Where the cause was illness, disaster, agent failure or a system outage, say so and attach evidence. Being short of cash is not accepted as a reason for penalty remission, so keep that argument for the interest instead. If interest has built up on the unpaid GST, that is a separate GIC remission request.
What to do next
- Lodge every outstanding BAS now, even with nothing paid, because the penalty grows every 28 days and lockdown risk starts at 3 months.
- Check the penalty notice against the table to confirm the units and entity size are right.
- Request remission, and ask about a payment plan for the GST and PAYG withholding at the same time.
Related questions
Is there a penalty for lodging a nil BAS late?
The failure to lodge penalty can technically apply to any late activity statement, but in practice the ATO generally does not penalise a late statement with a nil or refund result unless you are a large entity or there is a pattern. A nil BAS should still be lodged, because unlodged statements block payment plans and can trigger a default assessment.
Does a late BAS affect my payment plan?
Yes. Lodging on time is a standard condition of every ATO payment plan. A late BAS can put the plan in breach, and a new unpaid amount landing on the account can default it. If you are on a plan, lodge on time even if you need to call the ATO about the new amount.
Behind on BAS lodgements?
Get the penalty and the debt dealt with together. It is free to ask.
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