Late Business Activity Statements (BAS) Penalties from
1 July 2002

Further to the Tax commissioner’s announcement about penalties for late lodgement of BAS and IAS from 1 July 2002 the ATO has now advised that, from the first Activity Statements due for the new financial year, any document that is not lodged on time may have a penalty notice issued automatically. This penalty is referred to as the Failure to Lodge on Time (FTL) penalty and will be calculated as follows:

• Small entities are liable to a penalty of $110 for every 28 days, or part thereof, that lodgement is overdue.
• Medium entities are liable to a penalty of $220 for every 28 days, or part thereof, that lodgement is overdue.
• Large entities are liable to a penalty of $550 for every 28 days, or part thereof, that lodgement is overdue.

The maximum penalty that can be imposed is for 5 periods. Entity size is determined by reference to its withholding status, its assessable income or its current annual turnover for GST purposes.
This initiative heralds the tough approach to be taken by the ATO towards late and non-remitters.

What to do:

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