ATO BAS extension: Common mistakes to avoid when applying
Introduction:
Running short on time and thinking about a BAS extension? This option provides extra breathing space to meet lodgement and payment obligations, but many businesses take the process too lightly. As a result, requests are often rejected, leading to penalties and interest charges. In this blog post, we outline the most common mistakes made when applying for a BAS extension and share ways to avoid them, so you can stay compliant and better prepared.
Key takeaways
BAS extension gives your business more time to lodge your activity statement.
Extensions are only granted for valid, unforeseen circumstances.
Applying at the last minute increases the risk of rejection.
The ATO expects a detailed and specific reason for the extension request.
A lodgement extension does not automatically delay your payment due date
What is the BAS lodgment extension program?
The BAS lodgement extension program is an ATO support measure that provides extra time for businesses unable to submit their Business Activity Statement (BAS) by the original due date.
Extensions are only granted when genuine or unforeseen circumstances apply, such as illness, natural disasters, technical outages, major disruptions, or delays caused by third parties. It is intended as a safeguard, not a routine way to postpone BAS lodgements.
Fixed monthly fee for
a defined scope of services
Many clients appreciate having bookkeeping and tax services under one roof, while also enjoying the predictability of a fixed fee. Below is our indicative fee for a standard scope of work:
Cancel anytime
Unlimited support
Quick onboarding
Only Bookkeeping & BAS
Only bookkeeping and BAS (Does not cover tax returns, payroll and super):
$165/month *ex GST
Bookkeeping & Tax combined
For bookkeeping, BAS and tax returns (but no payroll or super included):
$225/month *ex GST
Bookkeeping, Tax & Payroll
All inclusive package: Bookkeeping, BAS, payroll, Super and tax returns:
$280/month *ex GST
How to apply for a BAS extension?
There are three main ways businesses may receive additional time to lodge a BAS:
Automatic agent program extensions: If you lodge through a registered BAS or tax agent like CleanSlate, you may already have access to extended BAS due dates under the ATO’s agent lodgment program. These dates are set in advance and apply automatically.
Standard two-week online lodgment concession: Businesses that lodge their quarterly BAS electronically using myGov or the ATO Business Portal may receive a standard two-week extension. This concession usually applies to quarters ending 30 September, 31 March, and 30 June. No application is required.
Manual lodgment deferral request: If you do not qualify for the above options or need extra time due to exceptional circumstances, you can apply directly by:
- Calling the ATO on 13 28 66, or
- Sending a message via Secure Mail in ATO Online Services
Reasons and supporting details must be provided before the ATO will consider your request.
Explore these helpful reads
Common mistakes to avoid with BAS extensions
If you plan to apply for a BAS lodgement extension it is important to know where applications often fail. As a registered BAS agent, we have seen many clients attempt to manage this process themselves and face problems that could have been avoided.
The ATO takes each request seriously, and errors in how it is prepared casn lead to rejection or unnecessary penalties.
By understanding these risks in advance, you can approach the process correctly and improve your chances of success. Below, we will share the most common mistakes our clients encountered before working with us, and how to avoid them
Waiting until the last minute
One of the most common errors is leaving the request until the due date or even after it has passed. The ATO views late applications less favourably and often places them into the stricter ATO-assessed category, which can take longer to process.
By the time the decision is made, penalties and interest may already apply. The safest approach is to submit your BAS lodgement extension request as soon as you know there is a problem.
Tired of chasing receipts and scrambling before BAS deadlines?
Book a call now
Giving vague explanations
Another frequent mistake is providing a general reason such as “cash flow issues” or “staff shortages.” The ATO wants to see a clear explanation of what prevented lodgment or payment. For example, a system failure, illness supported by medical certificates, or a sudden loss of income, explained with financial statements. Without this level of detail, a BAS payment extension request is unlikely to succeed.
Assuming lodgement extensions cover payment
A BAS lodgement extension gives more time to submit your activity statement, but it does not always extend the payment date. Unless a separate BAS payment extension has been requested and approved, the ATO still expects payment by the original due date. If this is overlooked, you may avoid late lodgment penalties but still incur interest charges for unpaid amounts.
Working with unregistered agents
A serious but avoidable mistake is relying on an agent who is not registered with the Tax Practitioners Board or whose registration has lapsed because of missed BAS agent renewal. The ATO does not recognise extension requests made through unregistered agents. This can leave the business exposed to late penalties despite believing an extension was in place.
Applying for ineligible obligations
A common error is applying for an extension on items that are not eligible. The ATO only allows lodgment extensions for certain obligations, such as quarterly activity statements, annual GST returns, PAYG payment summary annual reports, and taxable payments annual reports. These are the key areas where a BAS lodgement extension can apply.
However, not everything is included. Monthly activity statements, instalment notices (Forms R, S, T, and N), and some large business clients with substituted accounting periods are excluded. Submitting requests for these obligations leads to automatic rejection and does not prevent penalties from being applied.
For smoother compliance, ensure your BAS preparation is aligned with other ATO obligations like your business tax return .
Missing ATO notifications
Another mistake is not checking the right inbox for the outcome of a deferral request. The ATO does not always send updates to your regular email or even your personal agent inbox. Instead, decisions are delivered to the practice inbox in Online Services for Agents. Many businesses and even some agents forget to check this, assuming they will receive a direct alert.
If the request is declined and the message is missed, penalties and interest may continue to build without the business realising. It is important to monitor the practice inbox closely after submitting a BAS lodgement extension or ATO BAS payment extension request to ensure you do not overlook an important update.
Overlooking compliance history
The ATO looks at your lodgment and payment record when considering an extension. Businesses with repeated late submissions or unpaid liabilities often find that their BAS payment extensionrequests are declined. Even with a valid reason, poor compliance history reduces the likelihood of approval. Keeping up with obligations as often as possible is key to securing extensions when they are genuinely needed.
Deadlines are easier to manage when you know what to prepare in advance.
Tips to improve our BAS extension success
Here are a few tips that make your BAS extension request more convincing and improve the chances of ATO approval:
Use secure mail: The easiest and most reliable way to request an extension is through the ATO's secure mail: in Online Services (myGov or Business portal). State what you're requesting, the reason, and the timeframe. If you lodge through a registered tax or BAS agent, they can also make the extension request on your behalf using their ATO agent portal or software.
Request partial extensions when possible: If your BAS is ready but you are struggling with cash flow, you don’t always need a full extension. Lodging your BAS on time and applying only for a payment extension demonstrates good compliance behaviour and reassures the ATO that you’re keeping up with reporting obligations.
Apply early, not at the last minute: The ATO pays attention to patterns. Frequent last-minute requests suggest poor planning, which can weaken your case. Submitting your extension request early shows you are organised and proactive, which improves your chances of approval.
Monitor ATO Announcements: During events like natural disasters or widespread disruptions, the ATO often announces blanket extensions for affected businesses. Staying on top of these updates ensures you don’t miss relief measures that may apply automatically without needing a separate request.
Keep a record of our request. Always save a copy of your Secure Mail message, any confirmation from the ATO, or a reference number if the request was made by phone. Keeping proper records ensures you have proof of the request and allows you to follow up easily if there’s any confusion or delay in processing. This also demonstrates good record-keeping, which supports your compliance profile.
Final thoughts
A BAS extension can provide valuable breathing space, but it only works in your favour when handled correctly. By avoiding the mistakes we’ve discussed and following the right process, you give yourself the best chance of approval while staying compliant with the ATO.
At CleanSlate , we make the process simple. As registered BAS agents, we not only prepare and lodge accurately but also ensure our clients automatically receive the extended lodgment dates under the ATO agent program.
That means fewer deadlines to stress about, fewer risks of penalties, and more confidence knowing your obligations are under control. Contact us today and discover how easy compliance becomes when you have the right team on your side.
