If you’re running a business, I get it – lodging your BAS or tax return isn’t always at the top of the list. Between keeping staff paid, chasing invoices, and managing the day-to-day, paperwork can easily slip down the pile. And for a while, especially through COVID, the ATO was fairly relaxed about it.
But here’s the truth in 2025: those days are over. The ATO has stepped back into recovery mode, and one of the first things they look at is whether you’re lodging on time.
So, what actually happens if you don’t lodge on time?
1. Late Lodgement Penalties
Miss the deadline, and the ATO can apply Failure to Lodge penalties. These start small – a few hundred dollars – but add up quickly the longer it drags on. For small businesses, that’s money you don’t need to be throwing away.
2. Interest Charges
If there’s tax owing, the ATO also adds interest on unpaid amounts. That means the longer you delay, the bigger the bill becomes – even before you start making payments.
3. Enforcement Action
This is where things get serious. If you’re consistently late or not lodging at all, the ATO starts to question whether the business is viable. That can trigger stronger actions like Director Penalty Notices, garnishee orders, or even winding up proceedings.
4. Cash Flow Pressure
And here’s the kicker – leaving lodgements late usually means leaving the problem until it snowballs. Suddenly, you’re staring at a lump sum that’s near impossible to manage with normal cash flow. I’ve sat with plenty of business owners in that exact position, and it’s always harder to fix when you wait.
What’s the best move?
The most important thing is this: don’t ignore it. Lodging on time – even if you can’t pay straight away – keeps options open. It shows the ATO you’re engaged, and it allows us to step in and negotiate. From payment plans to restructuring options, there are pathways forward if you act early.
I know it can feel overwhelming, especially when you’re juggling so many other priorities. But I’ve seen time and again that once a business owner takes that first step – picking up the phone, getting advice, lodging the overdue return – the pressure eases. You move from fear of the unknown into a plan you can work with.
You don’t have to go through it alone. If you’ve fallen behind, reach out. Let’s look at your situation together and figure out the best next step.
The ATO might be stricter now, but with the right approach, you can stay in control and keep your business moving forward.
-Andrew
Book a confidential chat with me here: https://calendly.com/andrew-asadvisory