Lodgment deferrals¶

Sometimes life gets in the way and you cannot lodge your Activity Statement by the due date. If that happens, you do not have to simply miss the date and hope for the best. You can ask the Australian Taxation Office (ATO) for more time. This is called a lodgment deferral.

A deferral moves your due date to a later date the ATO agrees to. It is a normal part of how the ATO works with businesses, and the earlier you ask, the better.

In one line

A lodgment deferral is extra time the ATO can give you to lodge your Activity Statement — ask before the due date, and remember it is not the same as more time to pay.

Why this matters¶

Missing a due date with no warning can lead to a penalty for lodging late. Asking for a deferral before the due date gives the ATO a chance to grant you more time, so you avoid that stress. Knowing this option exists means a hard week does not have to turn into a bigger problem.

What you will learn¶

What a lodgment deferral is
Why it is better to ask before the due date than to miss it
Why a deferral to lodge does not automatically give you more time to pay

Understanding the concept¶

A lodgment deferral is the ATO agreeing to a later due date for lodging a document, such as your Activity Statement. The ATO explains that a deferral gives you extra time to lodge without getting a penalty for lodging late.

Deferrals are meant for genuine situations that are out of your control — the ATO describes these as exceptional or unforeseen circumstances that affect your ability to lodge on time. Illness, a family emergency, or a natural disaster are the kinds of events they have in mind.

You do not have to arrange a deferral yourself. If you use a registered agent (a bookkeeper or accountant registered to do this work), they can request a deferral for you as their client, using their own channel with the ATO.

There is one point that catches people out. The ATO treats lodging and paying as two separate things for Activity Statements. Getting more time to lodge does not automatically give you more time to pay. If you also need help with the payment, the ATO offers payment plans, which let you pay off what you owe in instalments. That is a separate request.

For accountants & bookkeepers

The ATO's guidance notes that lodgment deferral requests should be made by the lodgment due date. Requests made after the due date are only considered where the circumstances that prevented an earlier request can be explained in detail. For Activity Statements the ATO also notes that lodgment and payment are decided independently, so a lodgment deferral and a payment deferral are separate requests. A deferral cannot be requested for an Activity Statement before the ATO has generated it and made it available. A general interest charge can still apply to any amount not paid by its due date.

Example¶

Priya runs a small cafe on her own and does the books herself. Two weeks before her quarterly Activity Statement is due, she is admitted to hospital and cannot work.

Rather than let the due date pass in silence, Priya's bookkeeper — who is a registered agent — contacts the ATO before the due date and requests a lodgment deferral, explaining the circumstances. The ATO agrees to a later date, so Priya has time to recover and get her figures together without a late-lodgment penalty hanging over her.

Priya still owes an amount on the statement, though. Because a deferral to lodge is not more time to pay, her bookkeeper also looks at a payment plan so Priya can pay what she owes in smaller instalments. Two separate problems, two separate solutions.

Common mistakes¶

Simply missing the due date instead of asking for a deferral before it passes.
Assuming a deferral to lodge also means more time to pay — the two are separate.
Thinking only your accountant can ask — you can ask the ATO yourself as well.
Leaving the request until after the due date, when it is harder to have it granted.

How this works in myaccountant¶

In the app — myaccountant shows the due date for each Activity Statement so you can see what is coming up and plan ahead. If you use a registered agent, they can lodge your Activity Statement on your behalf. Arranging a deferral or a payment plan is done with the ATO directly, or through your registered agent.

Key points¶

A lodgment deferral is the ATO agreeing to a later due date to lodge.
It is better to ask before the due date than to simply miss it.
Deferrals are for genuine, out-of-your-control situations.
A registered agent can request a deferral for you as their client.
More time to lodge is not more time to pay — that is a separate request.
If paying is the problem, ask the ATO about a payment plan.

Learn next¶

General information only — not tax, super or financial advice.

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