Quick answer
Late BAS lodgements make a business loan harder because lenders can't see your true turnover or ATO balance. Most lenders want every BAS lodged before they approve, even if the tax isn't paid yet. Catching up is often quicker than people fear. Bank-statement lenders and property-secured lenders can sometimes proceed while you catch up, but lodging first almost always gets a better offer.
Key points
- Lodging and paying are separate: you can lodge a BAS without paying it, and lenders prefer that to no lodgement
- For companies, BAS lodged more than three months late can make a future director penalty notice a lockdown one
- Small businesses face a failure-to-lodge penalty for each 28-day block overdue, capped at five penalty units
- Low-doc lenders often use lodged BAS as the main income evidence, so gaps shrink what they'll offer
Here’s a pattern we see constantly. An owner is a quarter or two behind on BAS, partly because the bookkeeper left and partly because they didn’t want to see the number. Now they need finance, and the first thing the lender asks for is the ATO statement. That’s where the application stalls, and it stalls for a reason that has less to do with the debt than people expect.
The quarter just gone (July to September 2026) is due on 28 October 2026 for quarterly lodgers who lodge themselves; registered agents usually get extra time under their lodgement program. If you’re reading this with more than one quarter outstanding, the rest of this page is for you.
Why does an unlodged BAS worry a lender more than unpaid tax?
Because it hides two numbers the lender needs.
Your turnover. Many low-doc and fintech lenders use lodged BAS as evidence of income, particularly when tax returns are a year or more old. If the last BAS on file is from nine months ago, they’re lending on stale numbers, and they’ll either offer less or wait.
Your real ATO balance. An unlodged quarter has a liability attached that nobody has calculated yet. A lender can plan around a known $40k debt. It can’t plan around “somewhere between nothing and a lot”. Unlodged periods also invite the ATO to raise default assessments based on its own estimates, which may be higher than the true figure.
So the priority is almost always: lodge first, worry about payment second. Lodging without paying is completely normal, and it puts you in a much stronger position than not lodging at all.
The three-month line for company directors
For companies, BAS timing carries a second, sharper consequence. Under the director penalty regime, if the company reports its PAYG withholding and GST within three months of the due date, any director penalty notice that follows can be dealt with in several ways, including administration or restructuring. Miss that three-month mark and a later notice can be a lockdown one, where paying is the only way to escape personal liability.
Put plainly: lodging late but within three months protects directors in a way lodging after three months doesn’t. If a quarter is approaching that point, lodge it now, even if you can’t pay a dollar of it yet. Our page on director penalty notice funding covers what happens if a notice has already arrived.
What late lodgement costs on its own
| Cost | How it works |
|---|---|
| Failure-to-lodge penalty | For small entities, one penalty unit per 28 days (or part) overdue, capped at five units per document |
| General interest charge | Accrues daily on unpaid amounts and, since 1 July 2025, isn’t deductible |
| Default assessment | The ATO may estimate what you owe if you don’t lodge; it may not be in your favour |
| Lost lending options | Fewer lenders, smaller offers and more conditions until you’re current |
The ATO can remit penalties in some circumstances, and it encourages businesses that are struggling to talk to it early. That conversation goes better when you’re lodging, not avoiding.
Which lenders can help while you’re catching up?
A word for the banks first. Once your BAS are current and your financials are solid, a bank is often the cheapest place to borrow, and it’s worth asking. While lodgements are behind, most banks will wait. These lenders are more flexible:
- Bank-statement lenders. They size unsecured business loans on deposits in your account, so recent BAS aren’t always essential for a smaller amount. Expect them to ask about the ATO position.
- Low-doc lenders. Low-doc business loans often accept an accountant’s letter or lodged BAS instead of full financials. Missing quarters reduce what’s available, so lodge the gap and the offer improves.
- Property-secured lenders. Equity and a clear exit drive the decision, so a second mortgage or caveat loan can sometimes proceed on a commitment to lodge, often with the ATO paid from settlement.
Want to know what’s open to you right now? Send a quick enquiry and someone will tell you honestly.
Worked example: a landscaper three quarters behind
An illustrative case. A sole trader landscaper in Perth turning over around $520k a year hasn’t lodged BAS since December. Takings are healthy, but a ride-on mower and trailer need replacing, and the equipment financier wants recent BAS.
Their bookkeeper reconciles the accounts in eight days, and their BAS agent lodges the three outstanding quarters together, showing $31k of GST owing. The landscaper sets up an ATO payment plan the same week. With current lodgements and a plan in place, the equipment financier approves the replacement gear on the original terms. Had they applied without lodging, the likely outcome was a decline or a much larger deposit. The GST calculator helps estimate the BAS figure before the agent finalises it.
Your catch-up plan
- List every outstanding period, including any instalment activity statements and the last income tax return.
- Get the books reconciled. Bank feeds in your accounting software make this faster than starting from paper.
- Lodge the oldest periods first, especially anything getting close to three months overdue if you’re a company.
- Work out the total owing across lodged periods before you talk to a lender.
- Choose: payment plan, loan, or both. Our page on ATO tax debt business loans weighs the two.
- Ask about penalty remission once you’re up to date, if this is a first slip.
Mistakes to avoid
- Holding off lodging because you can’t pay. It only adds penalties and, for companies, risks lockdown.
- Guessing the BAS figures to get it done. Lenders compare BAS with bank deposits, and mismatches raise questions.
- Applying for credit before you know the number. You may borrow too little, then need a second loan.
- Forgetting the income tax return. Lenders often want that too; see loans when tax returns aren’t up to date.
Behind on BAS and need funding? We can help you sequence it
Getting current with the ATO and getting funded can happen side by side, as long as they’re done in the right order. That’s the kind of practical planning we do every week with owners who’ve fallen behind on lodgements.
It’s about a minute to fill in our form, and enquiring doesn’t put a mark on your credit file. Nothing gets spread across a dozen lenders; your enquiry is read by our team. A lending specialist looks at where your BAS are up to and gives you a call. Be upfront about which quarters are outstanding and roughly what’s owed, so the first lender we put forward is one that can work with your timeline.
Frequently asked questions
Can I get a business loan if my BAS isn't lodged?
Sometimes, but options narrow. Bank-statement lenders may size a smaller loan on deposits, and property-secured lenders focus on equity and exit. Most will still want the outstanding BAS lodged before settlement or shortly after, so start catching up now.
Should I lodge my BAS if I can't pay it?
Yes. Lodging on time stops failure-to-lodge penalties building and, for companies, keeps director penalty notices out of lockdown territory. Then set up a payment plan or arrange funding for the amount owing.
What penalty applies to a late BAS?
For small entities, the ATO can apply a failure-to-lodge penalty of one penalty unit for every 28 days or part of 28 days the BAS is overdue, up to five penalty units. General interest also accrues on any unpaid amount.
Do lenders check whether my BAS is lodged?
Usually. Lenders commonly ask for ATO portal statements, which show lodgement status and balances, and many low-doc lenders ask for the lodged BAS themselves as income evidence.
How quickly can I catch up on several BAS?
With bookkeeping up to date, a registered BAS or tax agent can often prepare and lodge several quarters within a week or two. If the books are behind as well, allow longer. Tell the lender your timeline; many will work with a credible plan.