Why do ATO dates catch good businesses out?
Tax is worked out on what you earned, but it’s due on a calendar that ignores your cash flow. A builder’s quarterly BAS can fall due before the client pays the progress claim that generated the GST. A seasonal business can face a PAYG instalment in its quietest quarter. A business that grew quickly can be surprised by an income tax bill well above what it set aside.
None of that means the business is failing. It means the cash and the due date are out of step.
What are the key dates?
| Obligation | When it’s usually due |
|---|---|
| Quarterly BAS (GST, PAYG instalments, PAYG withholding for small withholders) | 28 October, 28 February, 28 April, 28 July |
| Monthly BAS | 21st of the following month |
| PAYG withholding, medium withholders ($25,001 to $1m withheld a year) | Monthly, on the monthly activity statement |
| Super guarantee from 1 July 2026 | In the employee’s fund within 7 business days of payday |
| Super for a new employee’s first contribution | Within 20 business days of payday |
Lodging online or through a registered tax or BAS agent can give extra time on some quarterly BAS due dates, though not the December quarter. Check the ATO’s BAS due dates and your own online services account for the dates that apply to you.
What does Payday Super change?
Until 30 June 2026, super guarantee was paid quarterly, with the last quarterly payment due by 28 July 2026. From 1 July 2026, the ATO’s Payday Super rules require contributions to reach employees’ funds within seven business days of each payday. The ATO’s Small Business Superannuation Clearing House is also no longer available.
For cash flow, the effect is simple: super used to sit in the account for up to four months; now it leaves almost as fast as wages do. Late payments attract the super guarantee charge, which now includes interest compounding daily at the general interest charge rate. Our guide to Payday Super and cash flow covers the planning in detail.
What does paying late actually cost?
The ATO charges the general interest charge on overdue tax, calculated daily and compounding. Two recent changes make it bite harder:
- It’s no longer deductible. Under the new law, GIC and shortfall interest charge incurred on or after 1 July 2025 can’t be claimed, even when the debt relates to an earlier year.
- Big overdue balances can become visible. The ATO may report business tax debts to credit reporting bureaus where at least $100,000 is more than 90 days overdue and the business isn’t effectively engaging. That can affect how suppliers and lenders see you.
How can a facility help?
Timing gaps: a line of credit
If the money is coming — invoices are out, the season is about to start — a business line of credit lets you pay the ATO on the due date and repay the draw when your customers pay. It’s usually the tidiest option for businesses trading six months or more. Setting one up in advance, as standby working capital, means it’s ready before the next BAS.
Existing debt: a property-secured loan
If an ATO balance has already built up across several periods, a lump sum is often cleaner. A property-secured top-up of $20,000 to $1m can refinance or pay out ATO debt, secured on Australian property you or a supporting party already own. No financials or tax returns are needed for the initial assessment, and bad credit or arrears are considered case by case.
ATO payment plan or funding?
The ATO lets many businesses set up a payment plan online for debts of $200,000 or less. GIC continues to accrue on the plan, you must lodge on time and pay new liabilities as they fall due, and a defaulted plan can make the whole balance payable at once. For some businesses a plan is the right answer. Funding tends to suit when:
- You want the debt cleared in one step so it no longer affects your standing.
- The instalments the ATO will accept are tighter than your cash flow can comfortably meet.
- You’re consolidating tax debt with other short-term business debts into one repayment.
- You’re about to seek other finance and want a clean position first.
This is general information only — your accountant is the best person to compare the two for your circumstances, including the tax treatment of each.
How do you prevent the next squeeze?
Once the immediate problem is solved, build a system: a separate tax account, a regular transfer of a set share of every deposit, super paid with every pay run, and a cash flow plan with ATO dates marked in red. Our guides to GST timing and PAYG instalments for seasonal businesses go further.
What does it cost?
Every facility is priced on your individual circumstances. We don’t publish rates, and we look for the sharpest option available for your situation.
Get the ATO off your mind
Start the 60-second enquiry and tell us whether it’s an upcoming payment or an existing balance. It’s free, it doesn’t affect your credit score, and a lending specialist will contact you.