Understanding Business Activity Statement lodgement requirements is fundamental to staying compliant and maintaining healthy cash flow. Getting your BAS timing right affects both your compliance standing and your working capital.
The Basics: What Goes in Your BAS
Your BAS reports and pays several key obligations to the ATO including GST collected and paid, PAYG withholding for employees, and PAYG instalments on business income. Most businesses lodge quarterly, though some report monthly or annually depending on their GST turnover.
Quarterly Lodgement Dates
Most businesses lodge quarterly, with four key dates throughout the year. Quarter 1 covers July to September with lodgement due 28 October. Quarter 2 covers October to December with lodgement due 28 February. Quarter 3 covers January to March with lodgement due 28 April. Quarter 4 covers April to June with lodgement due 28 July.
Notice that Quarter 2 has a different pattern. Instead of the standard one-month gap between quarter end and lodgement, you get two months. This recognises that the December quarter ends during the Christmas and New Year period when most businesses and their accountants are operating on reduced capacity.
This extended deadline to 28 February is automatic for everyone lodging the October to December quarter. The ATO acknowledges that lodgement by 28 January would be unrealistic given the holiday period disruption.
Why The February Extension Matters for Cash Flow
The extended lodgement date for Quarter 2 creates an unusual cash flow pattern that businesses need to understand and plan for.
Under the standard quarterly cycle, you’re paying GST roughly every three months with about one month between quarter end and payment. But the Quarter 2 extension means you’re holding onto that GST liability for nearly two months after quarter end instead of one.
For a business with $40,000 in quarterly GST liability, that extra month means an additional $40,000 sitting in your account through January. This can be helpful if December revenue is slower than usual, or if you’ve had higher year-end expenses. But it can also be a trap.
The problem arises in February when that GST payment comes due. If you’ve been mentally spending that money or using it to cover other expenses throughout January, you might find yourself short when 28 February arrives.
Then there’s March, where you’re back to the standard quarterly cycle. Quarter 3 ends 31 March, and lodgement is due 28 April. That’s back to the normal one-month gap, meaning you’re paying Q3 GST just two months after paying Q2 GST instead of the usual three-month spacing.
This creates a tighter cash flow period from February through April where businesses are managing two quarterly GST payments with less breathing room between them.
