Can't Pay BAS on Time? What to Do First (2026)

General information only. This is not tax or financial advice. Speak with a registered tax or BAS agent for advice specific to your circumstances.

If you cannot pay your BAS on time, the first decision is usually not whether to wait. It is whether to lodge on time anyway and deal with the payment problem separately.

That distinction matters because late lodgment and late payment do not create the same risks.

The first priority: lodge on time if you can

The ATO repeatedly emphasises that it is important to lodge on time, even where payment is difficult.

Why?

• late lodgment can create failure-to-lodge penalty risk
• unpaid balances can also attract general interest charge (GIC)
• lodging gives you a clearer view of what is actually owed

So the practical sequence is usually:

1. work out the BAS
2. lodge it by the due date if possible
3. then deal with the payment shortfall as quickly as possible

If you cannot pay in full

If you cannot pay the BAS amount in full and on time, the ATO says you may be eligible for a payment plan.

That can help cash flow, but it is not a magic reset.

The main thing to remember is that GIC can continue to accrue on unpaid tax debts. That means the shortest realistic repayment period is usually the cheapest one.

Why “I’ll just wait” is usually the expensive option

Waiting creates two different problems:

• you may increase penalty risk if the BAS itself is not lodged
• you may increase the interest cost because GIC compounds on the overdue amount

That is why the better question is usually not “can I delay this?” but:

• can I lodge now?
• can I pay part now?
• can I set up the shortest workable payment plan?

Do not forget nil BAS obligations

Even if you have nothing to report, you still need to lodge a nil BAS by the due date.

That matters because some businesses confuse “nothing payable” with “nothing to lodge”. The ATO does not treat those as the same thing.

Practical BAS triage checklist

If you are under pressure before the due date:

• estimate the BAS amount first
• separate the lodgment problem from the payment problem
• lodge on time if you can
• pay as much as you can early to reduce GIC exposure
• speak with the ATO or your tax/BAS agent before the due date if you already know cash flow is tight

Key takeaways

• If you cannot pay BAS on time, the safest first move is usually to lodge on time anyway.
• A payment plan can help, but it does not automatically stop GIC from accruing on the unpaid balance.
• Even a nil BAS still needs to be lodged by the due date.

Sources

• ATO: If you can’t lodge or pay on time
• ATO: How to lodge your BAS
• ATO: Due dates for lodging and paying your BAS
• ATO: Payment plans
• ATO: Failure to lodge on time penalty

Next step

• Use the BAS Calculator to estimate the statement before lodgment.
• Use the ATO Interest Calculator to estimate how quickly GIC can compound if the BAS balance remains unpaid.