Situation
You can't pay BAS
Lodge the BAS on time even if you can't pay it. Lodgement preserves your director protections; late lodgement is what turns a payment problem into a Lockdown Director Penalty Notice. Then call the Small Business Debt Helpline (1800 413 828) about a payment plan.
Three things to do right now
- 1
Lodge the BAS today, even with $0 paid.
Lodgement is the act that preserves your options. Pay what you can; promise the rest via a payment plan.
Today
- 2
Set up a payment plan online if the debt is $200,000 or less.
Online Services for Business will take you through the calculation. Above that amount, call the ATO on 13 11 42.
Today or tomorrow
- 3
Call the Small Business Debt Helpline on 1800 413 828.
Especially if BAS arrears are stacking quarter on quarter. SBDH will help you decide whether a plan is realistic, or whether more formal options need to be on the table.
This week
Key facts (checked May 2026)
- Lodgement and payment are separate
- You must lodge your BAS by the due date even if you cannot pay it. Lodging on time, then setting up a payment arrangement, keeps you in the safer zone.
- Late lodgement triggers Lockdown DPN risk
- If BAS or IAS are not lodged within three months of their due date, a future Director Penalty Notice for those amounts will be a Lockdown DPN — personal liability cannot be remitted by appointing an administrator.
- Payment plans up to $200,000 are self-service
- Use Online Services for Business or the self-help phone line. Above $200,000, call 13 11 42.
- GIC accrues from the original due date
- General Interest Charge is currently 10.96% annual (Apr–Jun 2026), compounding daily, and is no longer deductible for amounts incurred from 1 July 2025.
Who to call
Free or low-cost. Independent of creditors. Checked May 2026.
Small Business Debt Helpline
Free, confidential, specialist financial counselling for sole traders and small business owners — tax debt, BAS, supplier pressure, insolvency options.
Free specialist counselling for tax debt and BAS arrears.
ATO Payment Plans (Online Services for Business)
Self-service payment plans for tax debts of $200,000 or less via Online Services for Business or the self-help phone line. Higher amounts and complex cases via the assisted line.
Official ATO payment plan setup.
Australian Small Business and Family Enterprise Ombudsman
Federal statutory ombudsman for small business. Free assistance with disputes against other businesses or government, plus a Tax Concierge for ATO matters.
If the BAS amount itself is in dispute, ASBFEO's Tax Concierge can support an ART matter.
We do not refer to commercial debt-relief operators.
Every service we point you to is free or low-cost, government-funded or not-for-profit, and independent of creditors. If a paid operator is offering to negotiate your ATO debt or run a Part IX agreement for a fee, talk to the Small Business Debt Helpline first — 1800 413 828, free.
Frequently asked questions
- Should I lodge BAS if I can't pay?
- Yes. Always. Lodgement is the act that preserves your director protections and your ability to negotiate a payment plan. Late lodgement of BAS or IAS within three months of their due date is what converts a payment problem into a Lockdown Director Penalty Notice.
- Can I set up a payment plan after I've already lodged?
- Yes. Plans for $200,000 or less can be set up online through Online Services for Business or the self-help phone line. Set the plan at a level you can actually sustain — a defaulted first plan is harder to renegotiate than a sustainable first plan.
- Will the ATO still charge interest on a payment plan?
- Yes. General Interest Charge continues to accrue on the unpaid balance while a payment plan is on foot. The current rate (Apr–Jun 2026) is 10.96% annual, compounding daily, and is no longer deductible for amounts incurred from 1 July 2025.
- What if I keep falling behind every quarter?
- If BAS arrears are stacking quarter on quarter, the underlying problem is usually cash flow, not the ATO. Call the Small Business Debt Helpline on 1800 413 828 — they will help you look at the wider picture, including whether Small Business Restructuring or another formal option is worth considering.
Sources
TEKVA provides information, not financial counselling or legal advice. Use this page as a starting point, then talk to a free specialist. The Small Business Debt Helpline is 1800 413 828.
This can get clearer from here.