BAS lodgement due dates 2023-24: What if you miss it?

Introduction:

Staying on top of your BAS lodgement due dates for the 2023-24 fiscal year is more than just a best practice—it's a legal necessity. Missing these deadlines can lead to various issues, from financial penalties to a strained business reputation.

In this comprehensive blog, we'll walk you through the important dates you need to mark on your calendar and delve into the issues you'll face if those dates slip by unheeded. Whether you're a seasoned business owner or just starting, this blog is your roadmap to navigating the complexities of BAS lodgment 2023-24.

The importance of BAS lodgment

• Legal compliance

  Lodging your BAS is not just a formality; it's a legal requirement. The ATO mandates the submission of BAS to ensure accurate reporting of various taxes, including Goods and Services Tax (GST), Pay As You Go (PAYG) instalments, and other tax obligations.

• Financial accuracy

  The BAS helps businesses maintain financial accuracy by ensuring they neither overpay or underpay their taxes. This is particularly important for maintaining a business's financial health and sustainability.

• Cash flow management

  The timely lodgment of BAS allows businesses to manage their cash flow more effectively. Knowing your tax obligations in advance helps better financial planning and fund allocation.

GST reporting and payment cycles

GST payments are vital to BAS. The frequency of lodgment is determined by your business's annual turnover:

• Monthly reporting

  Required for businesses with a GST turnover of $20 million.

• Quarterly reporting

  For businesses with a GST turnover of less than $20 million.

• Annual reporting

  Businesses voluntarily registered for GST with a turnover under $75,000 ($150,000 for non-profits).

A registered tax or BAS agent can assist with filing your activity statements. You can even use the ATO app to set phone reminders for key deadlines. Please also note that due dates may vary during a natural disaster.

BAS lodgment and payment due dates

The due dates for BAS lodgment vary based on the reporting cycle:

• Monthly BAS reporting

  For monthly financial reporting, businesses can select between two distinct methods: Full Reporting and Simpler BAS. The full reporting approach demands a comprehensive breakdown of your sales, purchases, and other GST-related activities. In contrast, simpler BAS is a streamlined option that still requires monthly GST payments but with fewer reporting details. You can opt for a simpler BAS if your GST turnover is less than 10 million.

  Depending on your preference for receiving notifications, you have two choices. If you opt for electronic communication through Online Services for Business, you'll be notified via email when your activity statement is ready for submission. For those who favour paper-based communication, the relevant activity statement will be mailed to you ahead of the submission deadline.

  The due date for both lodging your monthly activity statement and completing the payment is consistently the 21st day of the following month. If this date falls on a weekend or public holiday, the deadline is extended to the next working day. Adhering to these timelines and reporting protocols is essential for maintaining your business's financial compliance.

  The table below helps you to understand your monthly BAS lodgement due dates in a better way:

Monthly lodgement obligations	Monthly due date	Extended deadlines for BAS agents
All months except December	21st of the following month	Not applicable
December	21 January	Businesses under $10 million turnover have until 21st February to submit their activity statements.

• Quarterly BAS reporting

  In the context of quarterly tax reporting, businesses can choose between Full Reporting and Simpler BAS, which function similarly to their monthly versions, or opt for GST Instalments. The GST Instalments method allows businesses to make quarterly tax payments while requiring only annual reports. This option is ideal for smaller businesses and not-for-profits meeting certain criteria. This method makes it easier to manage your cash flow throughout the year and ends with a yearly check to fix any payment mistakes.

  Each method has its own set of rules and deadlines, but generally, the due date for quarterly reporting is the 28th of the month following the end of the quarter. if lodging online, you can expect an additional two weeks from the end of the quarter. Compliance with these timelines is crucial to avoid penalties. Lodging with the help of an agent will generally grant an additional two weeks.

  For the 2023- 24 financial year, the quarterly due dates are as follows:

Quarterly lodgement obligations	Original due date	Due dates (if lodging online)	BAS agents due date
Quarter 1	October 28, 2023	November 11, 2023	November 25, 2023
Quarter 2	February 28, 2024	Not applicable	Not applicable
Quarter 3	April 28, 2024	May 12, 2024	May 26, 2024
Quarter 4	July 28, 2024	August 11, 202	August 25, 2024

Note: The quarter-fourth dates are yet to be confirmed and will be finalised once the BAS agent lodgment program for the 2024–25 fiscal year is developed.

• Annual BAS reporting

  If you report and pay GST annually, this option is only available if you're voluntarily registered for GST. You won't have to report or pay any GST throughout the year; instead, you'll settle any due amounts at the end of the financial year. The only reporting method available for annual GST is the Simpler BAS method, which requires less detailed information and allows you to calculate and pay your GST once a year.

  The Australian Taxation Office (ATO) is responsible for sending you an annual GST return every year in July. The first return covers when you register for GST to June 30. After that, each return covers the period from July 1 to June 30.

  You are required to report and pay any Goods and Services Tax (GST), Wine Equalization Tax (WET), Luxury Car Tax (LCT), or Fuel Tax Credits (FTC) that you owe when you submit this annual GST return.

  The deadline for submitting your annual GST return and making any payments is either:

  • The same date your income tax return is due
  • Or February 28 if you are not required to submit an income tax return.

  If you're using the Simpler BAS method, you only need to report specific sections related to GST.

Changing your reporting and payment cycle

If your current reporting and payment cycle doesn't suit your business needs, you can change it. The best time to make this change is at the beginning of a new quarter or financial year. If you switch later, the new cycle will only take effect from the start of the subsequent quarter or year.

What happens if you miss the lodgment deadline?

If you have tax lodgment obligations and miss deadlines, the Australian Taxation Office (ATO) may impose a Failure to Lodge (FTL) on-time penalty. This penalty applies to various lodgments, including tax returns, PAYG instalments, GST, and PAYG withholding on activity statements.

The severity of the penalty is determined by factors such as the size of your entity and how long past the due date the lodgment occurs. If you've engaged a tax agent, you may be eligible for safe harbour provisions, which can offer protection against this penalty.

How does the ATO consider your circumstances?

The ATO recognizes that sometimes people don't meet their lodgment obligations on time, even with the best intentions. Generally, penalties are not applied in isolated cases of late lodgment. The ATO considers your circumstances when deciding what action to take and may warn you by phone or writing before applying an FTL penalty.

How does the ATO determine the FTL penalty amount?

The ATO calculates the FTL penalty based on the entity's size and how long the lodgment has been overdue. Here's a breakdown:

• How does the ATO determine the FTL penalty amount?

  The ATO calculates the FTL penalty based on the entity's size and how long the lodgment has been overdue. Here's a breakdown:

  • For small entities: A penalty unit is applied every 28 days the document is late, capped at 5 penalty units.
  • For medium entities: The basic penalty unit is doubled.
  • For large entities: The penalty unit is quintupled.
  • For significant global entities: The base penalty is amplified 500 times.

• Can you request remission?

  If you receive a penalty notice for failing to lodge a return or statement on time, you can request a remission if there are extenuating circumstances. These may include situations such as being impacted by a natural disaster or serious illness. The ATO can reduce (remit) the penalty according to your circumstances.

• What is a safe harbor from FTL penalty?

  If you engaged a registered tax or BAS agent to lodge your return or statement. In that case, you will not be liable for an FTL penalty if you show that you provided the agent with all relevant tax information to enable them to lodge returns or statement by the due date.

Tips to avoid costly penalties from the ATO

The Australian Taxation Office (ATO) imposes penalties for late or incorrect Business Activity Statement (BAS) lodgements. Here are 10 tips to help you avoid costly BAS lodgement penalties:

• Mark your calendar with the due dates for BAS lodgements. The ATO usually provides a schedule, so ensure you know when your next lodgement is due
• Maintain accurate and up-to-date financial records with the help of a skilled bookkeeper. This will make it easier to file your returns, including those related to payroll tax, and avoid errors that could lead to penalties.
• Engage a registered tax or BAS agent to help you with your lodgments. They can provide expert advice and may even extend your lodgment deadlines.
• Use ATO's online services for quicker and more convenient lodgment and payment. This can also help you track your lodgment status.
• Be clear about what you must report. Whether it's GST, PAYG, or other taxes, knowing your obligations will help you prepare better.
• Always double-check your returns for errors or omissions before submitting them to avoid penalties for incorrect lodgment.
• Keep an eye on any changes in tax laws or deadlines. The ATO website and newsletters are good sources for this information.
• If you know you'll miss a deadline, communicate with the ATO beforehand. They may offer extensions or other solutions in extenuating circumstances.
• If hiring a tax agent, ensure you provide them with all the necessary information on time. This could protect you from penalties under the safe harbor rules.

Ending note

Taking the time to familiarise yourself with BAS lodgment due dates and the payment and reporting cycles will ensure you remain up-to-date, organised, and compliant with your obligations.

Stay informed by regularly checking the ATO website for news regarding due dates and any changes to be aware of. Additionally, you must have a system where all of your information is stored accurately and act promptly should there be an immediate need for any changes to your payment or reporting cycle.

CleanSlate's specialised BAS lodgement services offer a reliable and efficient solution for those who want to ensure absolute accuracy and peace of mind. Please contact us to learn more about our BAS Lodgement services.