What Is a Lodgement Deferral? ATO Rules for Extensions & Late BAS or Tax Returns

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Lodgement Deferral

A lodgement deferral is an official extension of time granted by the ATO to submit a tax return, BAS, or other required report. It helps businesses and individuals avoid late…

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A lodgement deferral is an official extension of time granted by the ATO to submit a tax return, BAS, or other required report. It helps businesses and individuals avoid late lodgement penalties, especially during unexpected delays or high workload periods.

Only registered tax and BAS agents can apply for most deferrals on your behalf.

When You Can Apply for a Lodgement Deferral

You can request a deferral for:

  • Income Tax Return (individual, company, trust, SMSF)
  • Business Activity Statement (BAS)
  • PAYG Instalment or Withholding statements
  • Fringe Benefits Tax (FBT) Return
  • Taxable Payments Annual Report (TPAR)

The ATO will consider:

  • Personal illness or hardship
  • Natural disasters
  • Software or system issues
  • Agent workload or staffing shortages
  • Delays outside your control

Who Can Request It

Type of DeferralWho Can Apply
Agent-assessed deferralBAS/tax agent only
Special deferral requestTaxpayer or agent
Online deferral (limited)Some forms via ATO portal

Most businesses will need their agent to request the deferral using the ATO’s Online Services for Agents.

How the Process Works

  1. Identify the form and period needing deferral
  2. Submit request via Online Services for Agents
  3. ATO assesses and confirms approval or rejection
  4. New due date is recorded — penalties waived if lodged by then

Keep a record of the deferral approval in writing.

Lodgement Deferral vs Payment Plan

FeatureLodgement DeferralPayment Plan
PurposeDelay submission deadlineDelay payment of amount owed
Prevents penalties?✅ Yes, for late lodgement✅ Yes, for late payment (if approved)
Who appliesTax/BAS agent (usually)Anyone (via ATO or agent)

How Ozobooks Helps

  • Applies for deferrals on your behalf (individuals or businesses)
  • Identifies which lodgements are eligible for extension
  • Manages ATO correspondence and tracks new due dates
  • Prevents penalties from missed deadlines or late lodgements

FAQ

Q1: Can I get a deferral myself?
Some minor deferrals can be requested via myGov or ATO Business Portal, but full extensions usually require an agent.

Q2: Does a deferral stop interest?
No. It only delays lodgement penaltiesinterest may still apply if tax is unpaid after the due date.

Q3: How long is a deferral?
Typically up to 4 weeks, but longer in special cases (e.g., illness, disasters, agent capacity issues).

Q4: What if I still can’t lodge by the new date?
Another deferral or remission request may be possible, but you must act before the extended due date.

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