Quick answer
Being behind on BAS lodgements slows a business loan because nobody — including you — knows the true tax position. Lenders often worry more about overdue lodgements than about a tax debt with a plan. The ATO says it's important to lodge on time and to contact it before the due date if you can't lodge or pay. Catch up oldest first, lodge even if you can't pay, then deal with the balance.
Key points
- Overdue lodgement is often a bigger red flag than tax debt
- Lodge on time even if you can't pay in full
- Contact the ATO before the due date if you're struggling
- Catch up oldest periods first, with your BAS agent if you have one
- Once current, a lender can see your real position
It usually starts innocently. A busy quarter, a bookkeeper who left, a record-keeping system that fell behind. One BAS slips past its due date, then the next feels harder to face because the first isn’t done. Before long, several quarters are outstanding and the whole thing has become a knot in the stomach.
You’re far from alone, and it’s fixable. But if there’s any chance you’ll need finance in the next year, it’s worth fixing sooner rather than later — because overdue lodgements are one of the things that slow a business loan down the most.
Why do lenders worry about unlodged BAS?
Because it creates uncertainty, and uncertainty is what lenders are paid to avoid. When BAS is lodged, the ATO balance on your statement of account reflects what you actually owe. When lodgements are missing, nobody knows the true figure — not the lender, not the ATO, and often not you.
That’s why many lenders are more comfortable with a business that owes the ATO a known amount and is keeping to a plan than with one that owes nothing on paper but hasn’t lodged for a year. The first is a managed situation. The second could be hiding anything.
| Situation | How a lender tends to see it |
|---|---|
| Lodged on time, paid on time | Strong signal of an organised business |
| Lodged on time, debt on a payment plan being kept | Manageable; depends on size and context |
| Lodged on time, debt with no plan | A concern, but at least the number is known |
| Not lodged | Unknown liability — often the biggest concern |
The page on ATO debt and fast loans covers how lenders assess each of these.
What does the ATO say about lodging when you can’t pay?
The ATO’s guidance is consistent. It says it’s important to lodge on time because it ensures your information is up to date, and that if you can’t lodge or pay in full and on time, you should contact the ATO before the due date. It also says a general interest charge applies to any amount not paid by the due date, and that settling debts quickly keeps that charge down.
In other words: lodging and paying are two separate things. Even if you can’t pay, lodging on time keeps the record straight and keeps your options open. The ATO also offers an online payment plan estimator to help work out an affordable schedule.
How do you catch up, step by step?
1. Find out exactly what’s outstanding. Log in to ATO online services for business, or ask your registered agent, and list every period that hasn’t been lodged.
2. Get your records in order. Reconcile your accounting software for the outstanding periods. If the backlog is large, a bookkeeper can often clear it faster than you can. Our page on using accounting software data covers the tidy-up.
3. Lodge the oldest periods first. Work forward in order so each lodgement builds on an accurate position.
4. Lodge even if you can’t pay. Don’t hold a lodgement back because the payment isn’t ready.
5. Talk to the ATO about the balance. Once lodgements are current, you’ll know the real figure. The ATO says the quickest way to set up a payment plan is through its online services, though eligibility depends on circumstances.
6. Stay current from here. Put every future due date in your calendar and your cash flow forecast.
The ATO notes that a registered tax or BAS agent can lodge, vary and pay on your behalf, and that lodging online or through an agent may give extra time for quarterly BAS. If you’re far behind, an agent is often the fastest way out.
Need breathing space while you catch up? Start a 60-second enquiry — no credit check when you first enquire.
Which due dates should be in your calendar?
The ATO sets them out clearly:
| BAS type | Period | Due |
|---|---|---|
| Monthly | Each month | 21st of the following month |
| Quarterly | July–September | 28 October |
| Quarterly | October–December | 28 February |
| Quarterly | January–March | 28 April |
| Quarterly | April–June | 28 July |
Businesses lodging online may be eligible for an extra two weeks for quarterly BAS, though not for the October–December quarter, which already includes an extension. Put each date into the 13-week cash flow forecast so the payment is never a surprise.
What should you tell a lender while you’re catching up?
The truth, early. If you need finance before you’re fully current, a specialist can still help — but only with an honest picture. Tell them:
- Which periods are outstanding and when you expect to lodge them.
- Who’s doing the work — you, a bookkeeper or a registered agent.
- A rough estimate of the tax that will be owed, if your accountant can give one.
- Whether you’ve contacted the ATO.
With that information, a specialist can judge which pathways are realistic now and which will open once you’re current. Property-secured options may be available sooner, because the property and a clear repayment plan carry more of the weight.
How do you stop it happening again?
- Keep a separate tax account and move GST and PAYG withheld into it every week.
- Reconcile monthly, even if you lodge quarterly, so each BAS is quick to prepare.
- Diary the due dates and set reminders two weeks before each.
- Consider an agent. The time saved, and the possible extra lodgement time, can easily justify the cost.
- Look at monthly reporting if quarterly lumps are too large — the ATO has guidance on voluntarily changing to monthly GST reporting.
An illustrative example
Illustrative only. A small events-equipment hire business falls three quarters behind on BAS after its bookkeeper leaves during a busy season. The owner wants $80k to replace a fleet of marquees before the wedding season, and assumes the tax backlog rules him out.
He engages a registered BAS agent, who reconciles the accounts and lodges all three outstanding quarters over a couple of weeks. The balance owed is lower than he feared, and he sets up a payment plan online. When he enquires for finance, the specialist can now see an up-to-date lodgement record, a known ATO balance with a plan in place, and steady seasonal trading in the bank data. The conversation moves from “we can’t tell what’s going on” to “here’s a pathway that fits”.
Should you wait until you’re fully current before applying for finance?
Not always. If the need is urgent — wages, a supplier on stop, a contract that won’t wait — it can make sense to enquire while the catch-up is under way. Be clear about the timeline and who’s doing the work, and a specialist can tell you which options are realistic now.
If the need isn’t urgent, catching up first usually pays off. You’ll know your true tax position, lenders will have fewer questions, and more pathways will be open, including unsecured options that rely heavily on a clean tax record. Even a few weeks spent getting current can turn a difficult application into a straightforward one.
Either way, keep lodging while you talk to lenders. Every lodgement you complete makes the picture clearer and the conversation easier.
Ready when your lodgements are — or sooner?
Catching up on BAS is one of the best things you can do for your business’s borrowing power. If you need help while you get there, send the 60-second enquiry and a real person will look at your situation without judgement. There’s no credit check when you first enquire, and your details go to one specialist rather than a crowd of lenders who’ll each ask the same awkward questions. Please be upfront about which periods are outstanding — honest answers are what let us find a pathway that works now, not just later.
Frequently asked questions
Can I get a business loan if I'm behind on BAS?
It's harder, because the true tax position is unknown. Some lenders will still consider it, especially with property security, but catching up on lodgement usually opens more options and speeds things up.
Should I lodge my BAS even if I can't pay it?
Yes. The ATO says it's important to lodge on time so your information is up to date, and to contact it before the due date if you can't lodge or pay in full.
What happens if I don't pay my BAS on time?
The ATO says a general interest charge applies to any amount not paid by the due date. Penalties can also apply for lodging late.
Can a registered BAS agent help me catch up?
Yes. The ATO says a registered tax or BAS agent can lodge, vary and pay on your behalf, and lodging through an agent may give you extra time for future quarterly lodgements.
How long does it take to catch up?
It depends on how many periods are outstanding and the state of your records. With reconciled books, several quarters can often be prepared quickly; with a backlog of unreconciled transactions, it takes longer.