ATO late lodgement penalty: up to $364 per 28 days, capped at $1,820 per document · interest 11.43% p.a. compounding daily · See how to remit them →
What the backlog costs per document
| Exposure | Company version |
|---|---|
| Failure to lodge penalties | One penalty unit of $364 for each 28 days late, capped at $1,820 for a small entity, $3,640 medium and $9,100 large - per return and per BAS. A year unlodged is typically five documents and five caps |
| Interest | General interest charge accrues daily on unpaid amounts, backdated to each due date |
| Estimates | The ATO can raise default assessments and issue director penalty notices on estimated liabilities - inflated numbers, personalised |
| Lockdown DPN exposure | Every BAS still unreported past three months, and every overdue super guarantee statement, sits in the lockdown column: personal liability liquidation cannot remit. Each late lodgment moves nothing backward but stops the column growing |
| Blocked exits | No payment plan, no safe harbour, no restructuring, and weakened remission. The rescue doors all check the lodgment record first |
| ASIC drift | Annual reviews, solvency resolutions and registered addresses out of sync - and the registered address is where director penalty notices get posted |
The company catch-up sequence
Six steps, in this order
Pull the full position
Outstanding lodgments, account balances and any assessments already raised, in one pass through the agent portal. Fix the ASIC registered address the same day.
Triage by director penalty risk
Unlodged BAS and super guarantee statements first, because they run the lockdown clock. Income tax returns follow.
Reconstruct and lodge oldest first
Bank data, payroll records and supplier files rebuild most books. Rebuild the franking account, the Division 7A loan ledger and carried-forward losses as you go, because every later fix assumes them.
Replace any estimates
Real returns lodged against default assessments shrink the debt the whole recovery ladder is chasing.
Attack the inflated layer
Seek remission of penalties and interest on the back of the voluntary disclosure. Multi-year corporate catch-ups are the strongest fact pattern the remission system sees.
Then choose the debt path
A payment plan, a restructure, or an orderly close - a decision that only exists because steps one to five happened.
Penalty unit and caps checked August 2026
Frequently asked questions
What happens if a company does not lodge tax returns?
Should a company lodge a BAS it cannot pay?
How far back does a company have to lodge?
Can penalties on a big corporate backlog be reduced?
What about a company that stopped trading years ago?
General information only - not personal tax, financial or legal advice. Consider your own circumstances or speak to a registered tax agent. Remission of penalties or interest and payment plans are decisions of the ATO and outcomes can't be guaranteed.