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BAS and activity statements

The BAS is due and the money is not there

Lodge the BAS even if you cannot pay it — lodging and paying are separate obligations with separate penalties, and an unlodged statement costs you access to a payment plan. The debt then accrues general interest charge daily. It can be scheduled with the ATO, or cleared with a loan paid direct to them at settlement.

A business owner at a desk in a small office, unopened mail and a phone beside them

See if you qualify in sixty seconds. No credit check to apply, no financials, no payments for the first six months. That's the HomeSec Advantage.

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Lodge it anyway. This is the part people get wrong

Lodging a BAS and paying a BAS are two different obligations, and they carry two different sets of consequences. A business owner who cannot pay often does not lodge either, on the reasoning that lodging without paying just draws attention. That reasoning costs money in three separate ways.

  • Failure-to-lodge penalties. One penalty unit per 28 days or part, up to five units, for a small entity — a maximum of $1,820 per document at the current penalty unit of $364. That is a cost for not lodging, entirely separate from the tax.
  • No payment plan. The ATO expects lodgements to be current before granting an arrangement. Not lodging removes the cheapest option available to you.
  • It changes how the ATO sees you. Its published approach distinguishes between taxpayers who engage and taxpayers who do not, and engagement starts with lodgement. Firmer action arrives sooner for businesses that have gone quiet.

If lodgements have fallen behind by more than a quarter, the page on returns and statements that are not lodged covers catching up.

What an unpaid BAS costs while it sits

CostWhat it is
General interest charge11.43% for the quarter beginning 1 July 2026, compounding daily on the outstanding balance.
Not deductibleSince 1 July 2025, general interest charge cannot be claimed. The cost is paid from after-tax income.
Failure to lodgeUp to $1,820 per document for a small entity, if the statement itself is late.
Director penalty exposureThe PAYG withholding and GST components sit within the director penalty regime.
Credit reportingA business debt of $100,000 or more, overdue by more than 90 days and not under an effective arrangement, can be disclosed to credit reporting bureaus after 28 days' notice.

Three ways out, and how to choose

 Pay it nowPayment planClear it with a loan
Cash neededAll of it, todayAn upfront amount, then monthlyNone — paid from settlement
InterestNoneGIC, daily, not deductibleLoan interest, generally deductible for a business purpose
Ongoing pressureNoneA fixed instalment every monthNo repayments for six months
Director exposureRemovedRemainsRemoved once paid
NeedsThe cashLodgements current and capacity to payEquity in real property

Where the business can carry the instalments comfortably, a plan is cheaper and simpler and you should take it — here is how to set one up. Where meeting them would mean paying the ATO instead of a supplier or a wage, that is exactly the situation a plan is least suited to, and the reason most plans default.

Paying it with a loan, and how that works

We lend against equity in real property and remit the funds directly to the ATO using the payment reference number on your statement, so the balance is cleared at settlement rather than passing through your account. We do not require your lodgements to be current, we do not ask for financials or tax returns, and a defaulted payment plan or an existing ATO balance does not disqualify anyone. A person decides every loan. Every application is read by a Lending Manager and every credit decision is signed off by a person. We do not use artificial intelligence to assess, approve, decline or price a loan.

How much you can borrow

Take the property's value, multiply by 80% for residential security or 70% for commercial, and subtract what is already owing on it. What is left is roughly what is available, between $20,000 and $5,000,000. Several properties can be added together, and the borrower does not have to be the owner — companies, trusts and sole traders — including start-ups, with everyone on title signing. Up to 80% on residential and 70% on commercial. Lower on large acreage, and LVRs may reduce on properties worth less than $800,000.

From the call to the money

1

Tell us the deal

Amount, purpose, timing, the property and how the loan gets repaid. A Lending Manager gives you an indicative answer on that call — usually in minutes.

Minutes

2

Conditional approval

Photo ID, a rates notice and your most recent mortgage statement. That is the whole list, and it takes about fifteen minutes.

About 15 minutes

3

Funds released

As little as 24 hours from a clean, complete scenario. Paid where you tell us — to your account, or straight to the ATO.

As little as 24 hours

What it costs

Priced per file, on the property, the position, the amount and the exit. No rate is published, because a rate with "from" in front of it is the best file's number. How it is priced, and every fee that exists.

✓Upfront: a small commitment fee, payable only once your loan is conditionally approved
✓Valuation fee: none — we don't use valuers
✓Monthly or line fees: none — no monthly, line or account-keeping fees
✓Fee to extend: none — no rollover fees, legal fees or rewriting the loan to extend

Questions we get on the phone

What happens if I do not pay my BAS on time?
The debt sits on your integrated client account and general interest charge accrues on it, compounding daily, currently 11.43% for the quarter beginning 1 July 2026. The ATO's recovery options open up as the balance ages — a payment plan first, then firmer action including garnishee notices, director penalty notices for the PAYG withholding and GST components, and disclosure of the debt to credit reporting bureaus.
Should I still lodge the BAS if I cannot pay it?
Yes, and this is the single most important thing on this page. Lodging and paying are separate obligations with separate consequences. Failing to lodge attracts failure-to-lodge penalties, removes your access to a self-service payment plan, and stops the ATO treating you as engaging with them. Lodging on time while paying late is a materially better position than both being late.
What is the failure to lodge penalty?
One penalty unit for each 28 days or part of a period that the document is overdue, up to five units, multiplied by one for a small entity. The penalty unit is currently $364, which caps a small entity's failure-to-lodge penalty at $1,820 per document. Larger entities are multiplied further.
Can I get a payment plan for an overdue BAS?
Usually. Where the balance is $200,000 or less the ATO lets you set up a plan through its online services, and the business self-help line on 13 72 26 handles debts under $100,000. Lodgements need to be up to date, which is the practical reason to lodge first. Interest continues to accrue throughout.
Is the interest on an unpaid BAS deductible?
No, not since 1 July 2025. General interest charge and shortfall interest charge stopped being deductible then, so the whole cost of carrying the debt now comes out of after-tax money. That change is what most often makes clearing a BAS debt with a deductible business loan cheaper than carrying it on a plan.
Can a BAS debt make me personally liable?
The GST and PAYG withholding components can. Both are within the director penalty regime, which means the ATO can issue a Director Penalty Notice making those amounts your personal debt. Our page on Director Penalty Notices sets out how the 21 days work and what can be done inside them.
Can I borrow to pay my BAS?
Yes, and funds can be paid direct to the ATO from settlement using your payment reference number, so the debt is cleared on the day rather than passing through your account. We do not require your lodgements to be up to date and we do not ask for financials — the loan is assessed on the property and the exit.
Will the ATO know I borrowed to pay them?
The payment simply arrives against your payment reference number like any other. We do not report your borrowing to the ATO, and a loan used to clear a tax debt is an ordinary business transaction.
My BAS debt is several quarters old. Is it too late?
No. Older balances are common on the files we write. What changes with age is the ATO's posture — the longer a debt sits without engagement, the more likely firmer action becomes — so the age of the debt is a reason to move now rather than a reason it cannot be dealt with.
Lodge first, then decide

Whatever you choose, lodge the statement. Then call and we will tell you in a few minutes whether clearing it is an option and roughly what it would cost. 1300 93 83 87, Mon–Fri, 8:30am – 5:30pm Melbourne time.

Other pressure points
Where to start when cash has run outCannot make payrollA supplier has stopped supplyThe bank has called the facilityA customer has gone under owing youATO intent to disclose a tax debtServed with a winding-up applicationSmall business restructuring explainedA statutory demand has been servedA Director Penalty NoticeClearing an ATO tax debt
Sixty seconds, no documents

See if you qualify in sixty seconds

Three short questions, no credit check to apply and no financial statements. A Lending Manager reads it and calls you back with a real answer — not a call centre, not an algorithm.

That's the HomeSec Advantage.

See if you qualifyCall 1300 93 83 87Mon–Fri, 8:30am – 5:30pm Melbourne time

Reviewed by Catriona Anderson, General Manager

1300 93 83 87 homesec.com.au
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