BAS and reporting
Lodgment deferral
A lodgment deferral is extra time granted by the ATO to submit a return or statement after the normal due date, usually because of exceptional circumstances or an agent's lodgment program.
A lodgment deferral means the ATO has agreed that you can submit a document after its normal due date without it being treated as late. Deferrals are not automatic. They are usually granted because of special circumstances, such as serious illness, bereavement, natural disasters, or a technical problem that prevented lodgment. The ATO decides each request according to its own guidance.
Another form of extra time comes through registered tax agents and BAS agents. Under an agent's lodgment program, clients may be able to lodge later than the standard date for certain documents. This is not a personal deferral and has conditions, including that the client must be on the agent's program, and in some cases that earlier returns have been lodged on time. Ask your agent which dates apply.
A deferral usually relates to lodgment, not payment. In many cases, the amount you owe is still due by the original date, and the general interest charge can accrue on unpaid amounts from that date. Check this when you are granted time. If you cannot afford the payment, ask about a payment plan alongside the deferral request. Dealing with both together shows good faith.
To request a deferral, contact the ATO before the due date and explain your circumstances clearly. Be ready to provide supporting information, such as a medical certificate or details of the disaster or disruption. Requests made after the date are harder to approve and may not prevent a failure to lodge penalty. Record the date, the person you spoke to and the outcome in your files.
A deferral does not change the facts of your obligation. Records still need to be accurate and complete, and the information you provide when you lodge must be correct. If your circumstances continue for a long time, review whether you need professional help or a change to your reporting cycle that makes compliance more manageable.
The ATO also sometimes announces broad relief for people affected by declared disasters or other events, and these arrangements change from time to time. Check the ATO website for current information rather than assuming relief applies. This is general information only, so confirm your situation with the ATO or a registered tax professional.
Worked example
Wei's workshop floods three days before the BAS due date and he loses access to his records. He phones the ATO the next day, explains the situation and is granted an extra three weeks to lodge. The $6,200 net GST remains due and he arranges a short payment plan. Because he asked before the deadline, no failure to lodge penalty is applied for the agreed period.
Practical tips
- Ask for a deferral before the due date, not after, and keep notes of who you spoke to and what was agreed.
- Check whether the payment date has moved too, as many deferrals only cover lodgment.
- Ask your registered agent whether you are on their lodgment program before assuming extra time applies.