How to pay an ATO deadline when the business is short of cash

ATO deadlines don’t move. BAS has fixed dates, payment plan instalments have fixed dates, and the general interest charge starts ticking the day after something is due. When the business account is short on the 27th, the question becomes urgent: how do you meet the date?

This page sets out the realistic options — from the ATO itself and from business funding — and what to have ready when you call.

What are the ATO dates that matter?

For most small businesses, the main ones are BAS dates. The ATO lists:

• Quarterly BAS: 28 October, 28 February, 28 April and 28 July
• Monthly BAS: the 21st of the month after the reporting period
• If a due date falls on a weekend or public holiday, you have until the next business day
• Quarterly lodgers who lodge online may get an extra two weeks — except for the October–December quarter, which already includes a one-month extension

Then there are payment plan instalments, income tax, PAYG instalments and — if things have gone further — notices with their own deadlines, like a director penalty notice.

Step one: lodge on time, even if you can’t pay

This is the single most important point on this page. The ATO’s guidance is to lodge on time and contact it before the due date if you can’t pay. Lodging keeps your options open. For directors, late reporting can also limit how a director penalty can be dealt with later.

Lodging without paying feels uncomfortable, but it’s far better than not lodging at all.

Step two: payment plan or funding?

There are two broad ways to deal with an amount you can’t pay on the day.

An ATO payment plan. The ATO says that if you owe $200,000 or less you may be able to set one up through its online services; larger amounts are arranged by phone. Payment plans break the debt into instalments. But GIC still applies to debts in a payment plan, and it compounds daily.

Business funding. A loan pays the ATO in full, and you repay the lender instead. Lenders consider ATO debt case by case. Property-secured options suit larger amounts; unsecured options suit trading businesses with healthy bank statements.

How to compare them:

Question	Payment plan	Funding
Can it be arranged before the due date?	Often, online for $200k or less	Often; depends on documents
What does it cost?	GIC, compounding daily	Total cost of finance — ask for it in dollars
Is the cost tax deductible?	Not for GIC incurred from 1 July 2025	Business loan costs are generally treated differently — ask your accountant
What if the business misses an instalment?	ATO may cancel the plan and take further action	Lender’s terms apply
Does it clear the ATO balance?	Gradually	Immediately

The GIC deductibility guide explains why the 1 July 2025 change has shifted this comparison for many businesses.

What’s realistic by timeline?

• Due today: $20k – $250k possible same day with property security; smaller unsecured amounts possible same day. Remember the ATO may take up to four business days to show the payment, so keep the receipt.
• Due this week: unsecured cash-flow funding or a property-secured loan, up to $5m possible within 24–48 hours.
• Due this month: time to compare a payment plan with funding, and to choose.

Once you know which way you’re leaning, start the enquiry or ring 1300 752 188.

What to have ready when you call

1. Your ATO statement of account from Online services for business — balances and payment reference numbers for each account. See pulling your ATO statement.
2. Any ATO letters or notices, especially anything with a deadline on it.
3. Lodgement status — are all BAS and returns lodged?
4. Business bank statements and ID for each director.
5. Property details if you’d consider security.
6. How the loan will be repaid, ideally from normal trading.

Should funds go straight to the ATO?

Often that’s the neatest way. Funds paid directly to the ATO with the right payment reference number land against the right account, and there’s a clear trail. Each ATO account has its own PRN, so make sure you’ve got the right one — see paying the bill directly.

An illustrative BAS crunch

Illustrative example only. A plumbing business has a quarterly BAS of about $68k due on 28 October. A builder owes it $90k but won’t pay until mid-November. The owner lodges on time, checks the cost of a payment plan, and compares it with a short-term unsecured loan repaid from the builder’s payment. Because GIC is no longer deductible and the builder’s payment date is firm, the owner chooses the short loan and pays the ATO in full three business days before the due date.

What happens if you do nothing?

It’s worth being clear-eyed about it. Unpaid amounts keep attracting general interest charge. Larger, older debts can lead the ATO to take firmer action — and for businesses with at least $100,000 overdue by more than 90 days that aren’t engaging, the ATO says it may report the debt to credit reporting bureaus after giving notice. For companies, unpaid PAYG withholding, GST and super can lead to a director penalty notice. None of this happens overnight, which is exactly why acting at the first missed date gives you the most choice.

Find out what’s possible before the due date

The ATO date won’t move, but your options are wider the earlier you ask. Enquiring with the Deadline Desk doesn’t involve a credit check. We don’t hand your details to a queue of lenders; one team works on your situation, and a real person calls you back.

Please fill in the enquiry form honestly — the full ATO balance, the due date, lodgement status and any property — because accurate answers are what let us match you to an option that clears the debt in time. Or ring 1300 752 188.