The importance of timely lodgements of BAS and Tax in finance applications

In recent times, we have observed a growing trend among banks and finance brokers who are placing increased emphasis on statutory obligations when assessing finance applications. This means they are now more concerned with whether applicants have any outstanding BAS, tax debts, or other unpaid statutory obligations.

Key Areas to Focus On:

Lodging Tax Returns and BAS on Time: Ensuring that all statutory obligations, such as Tax Returns and Business Activity Statements (BAS), are lodged promptly is crucial. Delays in these lodgements can negatively impact the assessment of finance applications.

Meeting Statutory Payment Deadlines: It’s essential to pay all statutory obligations by their due dates. Late payments or outstanding debts can significantly affect the outcome of a finance application.

Maintaining Payment Plans for Statutory Debts: If you have a payment plan in place for any statutory debts, it’s critical to adhere to the terms. This means ensuring that:

• • All lodgements are made by the due dates.
  • Payments are made as agreed in the plan.
  • Avoiding defaults is crucial, as re-establishing a new payment plan can be more challenging if defaults occur.

How Clients Can Help:

Clients can contribute to timely lodgements by providing necessary information as soon as it becomes available or when requested. This proactive approach ensures that all obligations are met promptly, thereby supporting a smoother finance application process.

Maintaining compliance with statutory obligations not only prevents penalties but also strengthens the position of your finance application. By staying on top of lodgements and payments, you can ensure that your financial standing is well-regarded by banks and finance brokers.