BAS bill due and short on cash

The BAS bill is one of the most predictable costs a business has, and still one of the most common causes of a cash crunch. GST and PAYG withholding are collected over the quarter, often spent on running the business, and then due in one lump.

Step one: lodge on time

Even if you cannot pay, lodge the BAS by the due date. A lodged but unpaid BAS becomes a debt with interest, but failing to lodge adds penalties and closes off options. Lodging also gives you and any lender an accurate figure to work with.

Step two: choose how to pay

Option	Suits	Watch out for
Pay in full from cash	Bills you can cover without starving wages	Leaving the business with no buffer
ATO payment plan	Smaller debts cleared over a reasonable time	Interest continues; new BAS must be paid on time
Line of credit	Businesses that get squeezed every quarter	Staying drawn into the next quarter
Short working capital loan	A one-off large bill with a clear repayment path	Matching the term to real cash flow
ATO debt funding	Several quarters owing, or escalating ATO action	Choosing unsecured vs property-secured

Debts of $200,000 or less can usually be put on a payment plan online. Our comparison of ATO payment plans and business loans explains how to weigh them, including the fact that GIC incurred from 1 July 2025 is no longer tax deductible.

Need an answer this week? Send the 60-second enquiry now. Your details stay with one team and a real person picks it up.

Step three: stop it happening again

The cure for recurring BAS stress is separating the tax money from the operating money:

1. Open a separate account for GST and PAYG withholding.
2. Transfer the GST and withholding from each week’s takings into it.
3. Keep your bookkeeping up to date so the quarter’s figure is never a surprise.
4. Forecast the next BAS a month before it is due.

Our guide to BAS quarter cash planning sets out a simple routine.

When a line of credit makes sense

If your business is seasonal, or a large customer always pays just after the BAS is due, a line of credit sized to one quarter’s BAS can smooth the timing. Draw it in the week the BAS is paid and repay it as customers settle.

Key takeaways

• Always lodge on time, even if you cannot pay in full
• A payment plan suits smaller BAS debts
• Funding suits larger bills or tight cash flow
• Set GST and PAYG aside as you collect them

How we work through it with you

You send a 60-second enquiry with the amount, the purpose and a few facts about the business. A real person reads it, usually the same business day, and calls to fill in the gaps. For unsecured options they will ask for recent business bank statements, which can normally be shared through a secure read-only link. For property-secured options they will ask about the property and what is owed on it, with no valuation needed. You then see the offer in plain terms, including the total cost, and decide whether to go ahead. A credit check happens only at that point. If something about your situation is unusual, say so early; it is far easier to plan around a known issue than a surprise.

When borrowing helps, and when it does not

Funding works best when three things are true: the need is specific, it is temporary or it pays for itself, and there is a clear source of repayment. If all three hold, the right loan can take real pressure off the business. If the business is losing money month after month with no change in sight, borrowing only postpones a harder decision, and we would rather say so than arrange a loan that makes things worse.

Before you send the enquiry

A little preparation makes the first conversation far more useful, and it means the person who calls you can talk about options rather than chasing basic details:

• Your ABN and the legal name of the business.
• Online banking access, so recent statements can be shared through a secure read-only link.
• A rough figure for monthly turnover and the amount you need.
• A list of current loans and repayments, including any ATO payment plan.
• If property is involved, the address and roughly what is owed on it.

A quick word on the enquiry form

Late surprises are what slow funding down. A second property owner nobody mentioned, turnover that is lower in the statements than on the form, an amount that doubles after the first call: each one sends the assessment back to the start. If you tell us the full story at the beginning, even the awkward parts, the file only has to be worked through once.

See what you could qualify for

It costs nothing to find out. Check your eligibility in about a minute, with no credit check and no obligation. One team handles your enquiry from start to finish, and you will hear from a person, not an automated system. Fill the form in as accurately as you can; a careful minute now saves days later.