BAS Due and the Money Isn't There? Why the ATO Is Now an Expensive Lender
The September quarter is done, and for a lot of business owners, BAS time is when the numbers stop adding up.
The GST was collected. The PAYG was withheld. But somewhere along the way, that money got spent.
You're not the only one. But how you handle it now matters more than it used to.
The Dates for This Quarter
If you lodge your own BAS, the July to September quarter is due on 28 October.
If we lodge on your behalf, you may have a later due date.
One thing is different this quarter. Since Payday Super started on 1 July, super is paid every payday rather than every quarter, so there's no 28 October super deadline anymore.
That's good news for your staff. But it means more cash leaving your business every pay cycle, and less breathing room between quarters.
Why "Pay the ATO Later" Costs More Than It Used To
For years, plenty of businesses treated the ATO as a short-term lender. Pay the suppliers and staff first, sort the tax out later.
That always had a cost. The general interest charge applies to overdue tax, and it compounds daily.
What's changed is that from 1 July 2025, that interest is no longer tax deductible.
Every dollar of interest is now a full dollar out of your pocket. It applies even if the debt relates to an earlier year, and it keeps accruing while you're on a payment plan.
If You Can't Pay in Full, Lodge Anyway
This is the most important part.
Lodge your BAS on time, even if you can't pay it. Late lodgement adds penalties on top of the debt, and with the penalty unit now at $364, they add up quickly.
Then talk to us about a payment plan. While a debt is being managed under an agreed plan, the ATO generally holds off on recovery action.
The shorter the plan, the less interest you pay. The worst option is saying nothing and hoping it goes away.
Setting Up So Next Quarter Is Easier
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Open a separate bank account just for GST, PAYG withholding and super
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Move a set percentage of every deposit across as it comes in
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Do a quick BAS estimate halfway through the quarter, not after it ends
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Check your PAYG instalments still reflect how the business is actually tracking
Want to Get on Top of It?
If this quarter's BAS has you worried, the earlier we talk, the more options you have.
If you'd like to talk through how this applies to your situation, reach out to our office.