A late BAS can attract a failure-to-lodge (FTL) penalty of one penalty unit for every 28 days, or part thereof, up to five penalty units. For an infringement occurring on or after 1 July 2026, the Australian Taxation Office (ATO) lists each penalty unit as $364. These figures come from the ATO and were checked 2026-10-01; the official pages do not state a ready-made total dollar amount for an FTL penalty, so no total is calculated here.
Does the same five-unit cap apply to every late BAS?
No. The basic calculation is capped at five penalty units, but the applicable multiplier depends on the entity’s classification as a small, medium or large withholder when the document was due.
| Entity classification | How the ATO applies the base penalty |
|---|---|
| Individual or small withholder | Base penalty |
| Medium withholder | Base penalty × 2 |
| Large withholder | Base penalty × 5 |
An entity is classified as a large withholder if it had assessable income for the income year, or GST turnover for the relevant month, of $20 million or more. All classifications and multipliers come from the ATO’s Failure to lodge on time penalty guidance, checked 2026-10-01.
Directors should therefore establish which classification applied in the month the BAS was due, rather than assume that every late BAS carries the same base calculation. The official material reviewed does not impose personal liability on a director merely because the company was late; it explains the penalty rules for the relevant taxpayer or entity.
How does the 28-day calculation work?
The ATO describes the base FTL penalty as one penalty unit for:
- every 28 days the document is overdue;
- any part of a 28-day period that remains; and
- up to a maximum of 5 penalty units.
For an infringement occurring on or after 1 July 2026, the penalty-unit value is $364, according to the ATO’s Penalty units table, checked 2026-10-01.
The ATO pages provide the unit rate and multiplier rules, but a ready-made dollar total for a particular late BAS is not stated on the official page. This article therefore does not multiply the figures or present a total penalty.
Will the ATO impose an FTL penalty if the late BAS produces a refund or nil result?
Generally, the ATO says it will not issue an FTL penalty notice for a late activity statement if the lodgment produces either a refund or a nil result. That treatment can differ if:
- the FTL penalty was applied before the statement was lodged;
- the document is a third-party data report; or
- the entity is classified as a large withholder.
These exceptions are set out in the ATO’s Failure to lodge on time penalty guidance, checked 2026-10-01. A refund or nil result therefore does not provide an unconditional guarantee that no penalty consequences will arise.
Can the penalty be reduced or waived?
The entity may request remission of an FTL penalty after receiving the penalty notice. The outstanding document must be lodged before requesting remission.
The ATO may remit all or part of the penalty after considering the individual circumstances. Remission is discretionary: the reviewed official material does not state that filing late automatically qualifies for a waiver.
Could a registered tax or BAS agent provide a safe harbour?
The ATO states that safe harbour provisions may apply where a registered tax or BAS agent is used. This may be relevant when assessing the circumstances of a late lodgment, but the official material reviewed does not state that appointing an agent automatically removes an FTL penalty.
For a company director, the practical control point is to verify the registration and authority of anyone lodging or paying on the company’s behalf, retain records of the arrangement and ensure the BAS reaches the ATO by its due date.
Which BAS due date should the company check?
A company that lodges its BAS annually must generally be voluntarily registered for GST and have GST turnover below $75,000, or $150,000 for a not-for-profit organisation.
| Type of annual GST return | ATO due date |
|---|---|
| Annual GST return, where a tax return is required | 31 October |
| Annual GST return, where no tax return is required | 28 February following the annual tax period |
These conditions and dates come from the ATO’s Due dates for lodging and paying your BAS guidance, checked 2026-10-01. The company should also check whether its reporting and payment cycle can be changed and whether a recent cycle change affects eligibility to change again.
What should a director do after discovering a late BAS?
The immediate sequence is:
- Identify the BAS due date and confirm the entity’s withholder classification for the month it was due.
- Lodge the outstanding BAS promptly.
- Check whether an FTL penalty notice has already been applied.
- If necessary, request remission, noting that the outstanding documents should be lodged first.
- Check whether the use of a registered tax or BAS agent may engage the ATO’s safe harbour provisions.
- Correct the filing or payment controls so the next BAS is not submitted late.
Frequently asked questions
How many penalty units can apply to a late BAS?
The ATO’s base rule is one penalty unit for every 28 days, or part thereof, capped at 5 penalty units. Medium and large withholders may have the base penalty multiplied by 2 and 5, respectively. The ATO guidance was checked 2026-10-01.
How much is one penalty unit?
For an infringement occurring on or after 1 July 2026, the ATO lists one penalty unit as $364. Its Penalty units table was checked 2026-10-01.
Does a refund or nil result prevent an FTL penalty?
Generally, the ATO says it will not issue an FTL penalty notice for a late activity statement producing a refund or nil result. Exceptions include a penalty applied before lodgment, certain third-party data reports and classification as a large withholder. The guidance was checked 2026-10-01.
Must the outstanding BAS be lodged before seeking remission?
Yes. The ATO expects the outstanding documents to be lodged before a request for remission. It may remit all or part of the penalty based on the individual circumstances.