I Haven't Lodged My BAS or Tax Returns for a Long Time — Where Do I Start?

The ATO accepts overdue lodgements at any time — there's no cut-off, even if you're years behind. Lodging voluntarily, before the ATO contacts you, puts you in a meaningfully better position than waiting: penalties stop accruing the moment you lodge, and voluntary disclosure is a recognised factor the ATO considers favourably when deciding whether to reduce or waive penalties.

Once the ATO opens its own compliance case — rather than you lodging voluntarily — penalty relief becomes a matter for the ATO's discretion applied to a case it identified itself, rather than one you brought forward. Lodging first, even without being able to pay everything owing straight away, is generally regarded as the stronger position, both practically and in how the ATO is likely to treat the outcome — though the actual result in any case depends on your specific circumstances and compliance history, assessed by the ATO.

1. Gather what records you have. Bank statements, invoices, receipts — whatever exists, even if incomplete.

2. Work with a registered tax agent. Agents can prepare and lodge multiple prior-year returns at once, and often have access to extended lodgement arrangements the ATO offers agent-managed clients.

3. Lodge the outstanding obligations as soon as practicable, in whichever order your tax agent recommends based on your specific circumstances — there's no single sequence that suits every situation, so this is worth agreeing with your agent rather than assuming a default order.

4. Address any resulting tax debt separately, once lodgement is complete — a payment plan is a normal, available option, covered in its own dedicated guide.

5. Consider requesting a penalty remission once lodgement is caught up, particularly if genuine circumstances — illness, a disaster, a difficult personal period — contributed to falling behind.

The Failure to Lodge penalty increases the longer a lodgement remains outstanding, but it stops accruing the moment you lodge — it doesn't keep growing indefinitely once you've caught up. Penalty remission is ultimately at the ATO's discretion, assessed against your individual circumstances and compliance history — businesses with a generally strong compliance history lodging late for the first time in some years are often treated more favourably, but this isn't an automatic or guaranteed outcome, and it's worth discussing your specific situation with your tax agent rather than assuming a particular result.

The longer lodgements sit outstanding, the more the underlying records tend to scatter — old invoices misplaced, bank statements harder to retrieve, memory of specific transactions fading. Catching up sooner, even partially, is genuinely easier than catching up later, purely from a practical record-gathering perspective, well before penalties or tax debt even enter the picture.

• Have I gathered whatever records I do have, even if the collection feels incomplete?

• Have I engaged a registered tax agent to manage the catch-up process, rather than trying to navigate years of lodgements alone?

• Am I prepared to lodge before the ATO contacts me, rather than waiting and hoping it resolves itself?

• Have I separated the lodgement problem from the payment problem — addressing the first doesn't require having the second solved yet?

The ATO explains how it treats overdue lodgements and the penalty remission process.

ato.gov.au — Failure to lodge on time penalty https://www.ato.gov.au/individuals-and-families/your-tax-return/tax-return-lodgment-and-processing/penalties/failure-to-lodge-on-time-penalty

• you're behind on lodgements — whether by months or years — and want a structured, judgement-free process to catch up;

• you want the catch-up handled by someone experienced with multi-year lodgement programs;

• you're worried about the resulting tax debt and want lodgement and payment planning handled together; or

• you want a penalty remission request prepared properly once you're caught up.

→ What Happens If I Can't Pay My BAS or Tax on Time?

→ My Bookkeeping Is Months Behind — Where Do I Start?

→ The ATO Has Contacted Me About a Review or Audit — What Should I Do?

SKC Accounting | Knowledge Centre | Knowledge Guide 093

Last reviewed: August 2026

General information only. This guide does not take into account your individual circumstances and is not a substitute for professional accounting, taxation, legal or financial advice.