Funding a BAS or GST bill

Why BAS so often arrives at the wrong time

GST is collected when you invoice, not when you’re paid. PAYG withholding comes out of every pay run. Then, once a quarter, it all falls due at once — often in the same week as payroll, rent and a supplier run. If customers are slow, the money that was “set aside” in theory may be sitting in their bank account, not yours.

That’s why a BAS bill is one of the most common, and most predictable, reasons owners look for fast business finance. Predictable is good news: it means you can plan for it.

The 2026–27 BAS calendar

Quarter	Period	Due date (per ATO)
Q1	July – September 2026	28 October 2026
Q2	October – December 2026	28 February 2027
Q3	January – March 2027	28 April 2027
Q4	April – June 2027	28 July 2027

Monthly lodgers pay on the 21st of the following month. The ATO says businesses with GST turnover of $20 million or more must report monthly, and smaller businesses can choose to. The ATO also notes that online lodgers may receive extra time for quarterly BAS, except for quarter 2 — check your own due dates in online services or with your registered agent.

Why paying on time matters more now

Falling behind on BAS turns a timing problem into an ATO debt. That debt attracts the general interest charge, and the ATO confirms GIC incurred on or after 1 July 2025 is no longer tax deductible. For company directors, unpaid GST and PAYG withholding also fall within the director penalty regime. See funding for ATO debt if a balance has already built up.

So the real comparison isn’t “borrow or don’t borrow” — it’s “borrow from a lender, on terms you choose, or borrow from the ATO, on terms you don’t”. Put the numbers side by side with the loan cost calculator.

Choosing the right structure

A line of credit is the natural fit for BAS. The gap returns every quarter, so an approved limit you draw on for a few weeks and repay from the next month’s receipts is usually the cheapest and least disruptive answer. Set it up before the quarter, not during the week it’s due. See business line of credit.

A short unsecured loan suits a one-off larger BAS — after a record quarter, say, or a big asset sale — for established businesses with steady statements. Same-day funding is possible for smaller amounts.

Property-secured funding suits a very large bill, or a BAS combined with older ATO debt, when the total is more than turnover-based lending supports.

Not sure which fits? Tell a specialist the BAS amount and due date, or run the Fast Business Loan Navigator.

Reducing the squeeze next quarter

• Transfer GST and PAYG to a separate account each time you’re paid. It turns a quarterly shock into a weekly habit.
• Consider monthly BAS. Smaller, more frequent payments can be easier to manage, which is why the ATO lets smaller businesses opt in.
• Tighten debtor terms in the six weeks before each due date.
• Build a 13-week forecast that shows BAS, payroll and super together. Our cash flow forecast guide walks through it.
• Remember super has moved. Since 1 July 2026, super must reach funds within 7 business days of payday under the ATO’s Payday Super rules, so it no longer lines up with BAS the way it used to. See funding payroll.

What to have ready

1. The draft or lodged BAS showing the amount payable.
2. Recent business bank statements — ideally connected digitally.
3. Your ATO statement of account if there’s an existing balance.
4. Photo ID for directors.
5. A sentence on when the funds will be repaid — usually from the next month’s receipts.

An illustrative example

A Melbourne events business has a huge September quarter from spring bookings, which means a large BAS due in late October, while several corporate clients pay on 60-day terms. The business sets up a line of credit in early October, draws enough to pay the BAS on the due date, and repays it in December as the corporate invoices clear. It then keeps the facility for February and April. Illustrative only.

Common BAS funding mistakes

A few patterns turn a manageable BAS gap into something harder:

• Waiting until the due date. Applying for finance in the week BAS is due means you’re negotiating under pressure. Two to three weeks’ notice gives you choices.
• Using the GST money for growth. It’s tempting to spend GST collected on stock or wages in a busy quarter. It isn’t your money, and the bill still arrives.
• Skipping lodgement. Not lodging because you can’t pay removes options, including under the director penalty regime. Lodge on time regardless.
• Borrowing more than the gap. Size the facility to the shortfall plus a small buffer, not to the whole BAS if part of it can be paid from cash.
• Choosing a daily-repayment product for a quarterly problem. Match the repayment rhythm to when customer money arrives.

Avoiding those keeps BAS a planning item rather than an emergency.

Keep BAS on time, every time

A BAS bill shouldn’t have to become an ATO debt. Enquiring takes a minute and doesn’t involve a credit check, your details stay with one team rather than being handed to a stream of lenders, and a real person helps you choose between a one-off loan and a standing facility. Please enter your turnover and the BAS amount accurately — it’s what lets us size the right solution quickly. See if you qualify.