The BAS quarter cash crunch, and how to get through it

Every quarter it’s the same story. The BAS figure arrives from the bookkeeper, and it’s bigger than what’s in the account. Not because the business did badly, but because the GST you collected from customers and the PAYG you withheld from wages went out the door again as stock, rent and wages long before the ATO asked for it.

When is BAS actually due?

For quarterly reporters, the ATO’s standard due dates are:

Activity months	Pay the ATO by	Quarter
July, August and September	28 October	First
October, November and December	28 February	Second
January, February and March	28 April	Third
April, May and June	28 July	Fourth

Monthly lodgers have until the 21st of the next month. When the 28th (or the 21st) is a Saturday, Sunday or public holiday, the ATO accepts lodgment and payment on the first business day afterwards. Lodging online, or using a registered tax or BAS agent, may stretch some quarters further, but never the second quarter, because its February date already has a month’s extension built in.

Why does the BAS crunch keep happening?

Because GST and PAYG withholding sit in your everyday account, mixed in with your own money. They feel like income. Then they get spent. Three months later the bill arrives in one lump.

Growing businesses feel it hardest. More sales mean more GST collected, but also more stock and wages paid out before the BAS date. Our guide to profitable but no cash explains why.

What are the options if you can’t pay in full?

1. Lodge on time anyway. Lodging and paying are separate. Lodge by the due date even if you can’t pay everything, so you avoid failure-to-lodge penalties on top.

2. ATO payment plan. The ATO says debts under $200,000 may be set up online; larger ones need a call. The general interest charge keeps accruing while you pay, and since 1 July 2025 that GIC isn’t tax deductible, so the ATO itself recommends keeping any plan as short as possible.

3. Short-term cash or a cash line. Paying the BAS on time and repaying a lender over the following weeks can be cleaner, especially if you’ll have the cash within a month or two. A business cash line is built for exactly this kind of recurring quarterly pinch.

4. Property-backed cash for a larger tax debt. If quarters have stacked up into a bigger debt, see cash to clear an ATO debt.

BAS due and the account’s short? Tell us the amount and the date and a real person will call with options.

Payment plan or borrowing? A quick comparison

Factor	ATO payment plan	Short-term cash or line
Speed to arrange	Can be quick online for smaller debts	Same day possible for smaller amounts
Cost	GIC accrues; not deductible from 1 July 2025	Priced on your situation
Effect on the ATO relationship	Debt remains with the ATO	ATO is paid; debt is with the lender
Effect on future quarters	New BAS must still be paid on time	Same
Flexibility	Must stick to the plan	A line can be redrawn

There’s no one right answer. The numbers for your business decide it.

How do you stop next quarter’s crunch?

Set up a separate “tax” account and move money into it every week:

1. Take the GST you collected that week (roughly one-eleventh of GST-inclusive sales, less GST on purchases).
2. Add PAYG withheld from that week’s wages.
3. Transfer it on the same day each week.

When the BAS arrives, the money is already there. If you’re building the habit from scratch, a short-term bridge for this quarter while the set-aside fills up for the next one is a sensible combination. Run the timing through the cash gap calculator to see how big the bridge needs to be.

Which quarters bite hardest?

It depends on your trade. A few common patterns:

• Retailers and hospitality often feel the 28 February BAS most. It covers the October–December quarter, when sales (and GST collected) peak, but it’s paid in February, after a quiet January.
• Builders and trades can find 28 October tough if winter was slow but spring jobs need materials upfront.
• Seasonal tourism businesses may struggle with whichever BAS falls in their off-season.
• Businesses that pay annual insurance or registrations in the same month as a BAS feel a double hit. See cash for annual bills.

Knowing which quarter is your worst lets you start setting aside earlier, or arrange a cash line before you need it.

An illustrative example

Illustrative only. A Hobart homewares retailer owes $34k for the July–September quarter, due 28 October. After a busy winter restock, the account holds $12k. The owner lodges on time, draws on a short-term facility to pay in full, and starts moving 12% of weekly takings into a tax account. By the February BAS, the money is waiting.

Let’s get this quarter sorted

The BAS crunch is common, and it’s completely solvable. If this quarter has caught you short, tell us the amount and the due date. It takes about a minute, there’s no credit check to ask, and your details aren’t handed around to a bunch of lenders. A real person who deals with tax-time cash calls you to talk it through.

Please be accurate about the BAS amount and any existing ATO debt. It’s never a deal-breaker to have one, but it does shape the right answer.

Sort my BAS cash →