In Australia, the penalties for late lodgement of a Business Activity Statement (BAS) are determined by the Australian Taxation Office (ATO) and can vary depending on the size of the entity and the duration of the delay.
For small entities, the penalty is calculated at the rate of one penalty unit for each period of 28 days that the return or statement is overdue, up to a maximum of five penalty units. The penalty increases for medium and large entities, with the penalty unit being multiplied by two for medium entities and by five for large entities.
Significant global entities face even higher penalties, with the base penalty amount multiplied by 500. It's important to note that these penalties are applied for each 28-day period or part thereof that the BAS is overdue. Additionally, if you're having trouble in lodging or paying on time, it's advisable to contact the ATO as soon as possible to discuss a solution, which may include entering into a payment plan.
The ATO may also apply a general interest charge on any amount not paid by the due date. To avoid these penalties, it's crucial to lodge your BAS on time, ensuring that your tax obligations are met promptly.