The Australian Taxation Office has released new data on BAS refund processing times, and the numbers are better than many business owners expect. If you have been wondering how long your GST refund will take or whether the new 30-day retention framework will slow things down, here is what the data actually shows.
Source found here: data.gov.au
From 1 July 2025, the ATO now has 30 days to notify you if your BAS refund is being held for verification. This is an increase from the previous 14-day window under the Extending the ATO's BAS Retention Framework measure.
When this change was announced, some business owners worried it would mean longer waits for refunds. The early data suggests the opposite is happening.
The ATO has published processing statistics for the September 2025 quarter, the first full quarter under the new framework. The results are the best on record.
Nine out of ten BAS refunds (90.2%) were processed within seven days. This is the highest proportion since the ATO began publishing this data. A further 3.8% were processed between 8 and 14 days, meaning nearly 94% of all refunds landed in business bank accounts within two weeks.
Only 3.75% of refunds took longer than 30 days. This is the lowest figure recorded and down from around 4.3% in the previous quarter.
Looking at the annual figures, there has been a steady improvement in processing speed.
In the 2022-23 financial year, 86.5% of refunds were processed within seven days. By 2024-25, this had risen to 88.3%. The September 2025 quarter pushed this above 90% for the first time.
The proportion of refunds delayed beyond 30 days has remained stable at around 4% across all three years. This consistency suggests these delays are driven by specific issues rather than systemic problems at the ATO.
The ATO notes in the data release that refunds exceeding 30 days are often caused by administrative issues rather than compliance concerns. The most common reasons include missing or incorrect bank account details on file with the ATO, outstanding BAS lodgments from earlier periods, and verification requirements for unusual claims or first-time lodgers.
If your refund is taking longer than expected, these are the first areas to check. Ensuring your bank details are current in the ATO portal and lodging any overdue returns will resolve most delays.
For most businesses, the practical takeaway is straightforward. You can reasonably expect BAS refunds to arrive within one to two weeks of lodgment. The 30-day framework is a backstop for the ATO to conduct verification checks, not a new standard processing time.
When forecasting cash flow, build your models around a 7 to 14 day refund cycle for routine BAS lodgments. If you regularly claim large GST credits or have complex transactions, allow a few extra days as a buffer.
Businesses that lodge on time and keep their ATO records up to date rarely experience significant delays.
The quarterly data reveals some predictable patterns. December quarters consistently show the fastest processing, with around 89 to 90% of refunds completed within seven days. This likely reflects lower lodgment volumes after the September BAS rush.
March quarters tend to show slightly longer processing in the 15 to 30 day bracket, coinciding with end of financial year preparation and higher compliance activity.
If cash flow timing is critical for your business, lodging your BAS early in the quarter rather than close to the deadline can help you avoid peak processing periods.
The extension of the ATO's retention notification period from 14 to 30 days has not slowed down refund processing. If anything, the additional flexibility appears to have improved processing times by allowing the ATO to handle verification within normal workflows rather than triggering formal holds.
For Australian SMEs, the message is clear. Lodge on time, keep your details current, and expect your refund within a week or two.
The ATO processes approximately 90% of BAS refunds within 7 days of receiving the lodgment. Around 94% are processed within 14 days, and 96% within 30 days. Only about 4% of refunds take longer than 30 days, typically due to missing bank details or outstanding prior lodgments.
From 1 July 2025, the ATO has 30 days to notify a taxpayer if their BAS refund is being retained for verification. This is an extension from the previous 14-day notification period. The change allows the ATO more time to conduct compliance checks without affecting routine refund processing.
Common reasons for BAS refund delays include incorrect or missing bank account details registered with the ATO, outstanding BAS lodgments from earlier periods, verification requirements for unusually large claims, and first-time lodgments that require additional checks. Updating your bank details in the ATO portal and lodging any overdue returns will resolve most delays.
December quarters typically show the fastest processing times, with 89 to 90% of refunds processed within 7 days. Lodging early in any quarter rather than close to the deadline can also help avoid peak processing periods when volumes are higher.
No. Data from the September 2025 quarter, the first full quarter under the new 30-day framework, shows the best processing times on record. Over 90% of refunds were processed within 7 days, and only 3.75% took longer than 30 days, the lowest figure recorded.
The ATO publishes BAS refund processing statistics on data.gov.au as part of its commitment under the Extending the ATO's BAS Retention Framework measure. The data is updated regularly and includes both annual and quarterly breakdowns.
For cash flow planning purposes, most businesses should expect BAS refunds within 7 to 14 days of lodgment. Businesses with large GST credits or complex transactions may want to allow a few extra days as a buffer. The 30-day framework is a backstop for verification, not the standard processing time.
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