Tax return not lodged yet? How to show a lender it's in hand

“Your latest tax return, please.” For plenty of business owners, that’s the question that stops a finance conversation dead. The return is with the accountant. Or it’s half done. Or it hasn’t been started because the books are behind.

Here’s the thing: lenders see unlodged returns constantly. What slows a file down isn’t the missing return. It’s not knowing where it’s at. This guide shows how to turn “it’s not done yet” into a clear, evidenced status that a lender can work with.

Is “not lodged” the same as “overdue”?

No, and the difference matters.

The ATO says the due date to lodge your own individual tax return is 31 October. But it also says that engaging a registered tax or BAS agent can give you a later due date for lodgement. Companies and trusts on a registered agent’s client list commonly have later due dates too.

So a sole trader whose return is with their tax agent in, say, February may not be late at all. A lender who only sees “no return for last year” may assume it is. Your job is to show the real status, in writing, from someone the lender trusts.

If a return genuinely is past its due date, that’s a different conversation, covered on our overdue tax returns or BAS page. The steps below still apply; the letter simply sets out a catch-up plan rather than a normal timeline.

What does a lender actually need to know?

When a return is missing, a lender has four questions:

The question	The evidence that answers it
Who is preparing it, and are they legitimate?	Letter from a registered tax agent (checkable on the TPB Register)
When will it be lodged?	The agent’s expected lodgement date, and the applicable due date
Will there be tax to pay?	The agent’s estimate, and your ATO account statement
What did the business earn meanwhile?	Recent BAS and business bank statements

Answer all four and a missing return usually becomes a footnote.

Step 1: Get a status letter from your tax agent

Ask for a short letter on the practice’s letterhead. It should confirm:

1. They are a registered tax agent (with registration number) and act for you or your entity.
2. Which return is outstanding, for which year.
3. The expected lodgement date, and the due date that applies under their arrangements.
4. Their estimate of any tax payable, if they can give one.
5. Whether all BAS are lodged and up to date.

Keep your request specific. “Please confirm the 2025–26 return is in preparation, the expected lodgement date and whether all BAS are current” gets a faster answer than “can you write something for the bank?”

The Tax Practitioners Board encourages people to check a practitioner is registered using the TPB Register, and registered practitioners can display a symbol showing their registration type and number. Lenders sometimes check, so it’s worth making sure the letter includes those details.

Our page on the accountant’s letter has more on what to include and what to leave out.

Step 2: Download your ATO records

While your agent writes the letter, pull the independent evidence yourself:

• Lodgement history, showing past returns and BAS were lodged.
• Account statement, showing whether you owe anything and whether a payment plan is in place.
• Last notice of assessment, as the most recent official income figure.
• Lodged BAS for the last four quarters.

Sole traders use ATO online services linked to myGov; the ATO says notices of assessment go to your myGov Inbox once the ATO is linked. Companies and trusts use Online services for business, which needs a myID linked to the ABN in RAM. See ATO online records for the details.

The account statement is especially important. A lender’s real worry about unlodged returns is unknown tax debt. A statement showing a nil balance, or a small balance on a payment plan with every instalment paid, removes most of that worry.

Step 3: Cover the income gap with current evidence

The return would have shown what the business earned last year. Recent evidence can show what it’s earning now, which many lenders find more useful anyway.

• Lodged BAS for the last four quarters show turnover reported to the ATO. See reading your BAS like a lender.
• Business bank statements for six to twelve months show the money that arrived.
• A year-to-date profit and loss from your software, if your books are reasonably current.

Together these can do most of the work a tax return would have done, which is why they’re the backbone of low doc lending. The BAS instead of tax returns page explains how lenders weigh them.

Step 4: Write a one-page status summary

This is the step most people skip, and it’s the one analysts appreciate most. A simple table, signed and dated by you:

Item	Status
2024–25 return	Lodged; notice of assessment attached
2025–26 return	With registered tax agent; expected lodgement in March; agent’s letter attached
BAS	All lodged to the June quarter; copies attached
ATO balance	Nil; account statement attached
Bank statements	Twelve months attached, all business accounts

Illustrative layout. It takes ten minutes, and it answers the lender’s questions before they’re asked.

What if tax will be owing once the return is lodged?

Say so, with the agent’s estimate. Lenders can work with a known number. Business finance can be used for business purposes including paying tax, and ATO debt is considered case by case. What damages trust is a large tax bill appearing after approval that nobody mentioned.

If you can’t lodge or pay on time, the ATO says to contact them before the due date so you can work together, and notes that registered agents may be contacted on your behalf. Early contact usually leads to better options than silence.

How do lenders treat a return in progress?

It depends on the lender and the loan:

• Property-secured lenders often proceed on the equity and the evidence above, sometimes with lodging the return set as a condition. Loans run from $20,000 to $5,000,000 by first mortgage, second mortgage or caveat.
• Unsecured and line-of-credit lenders, typically $5,000 to $500,000 and sized on turnover and bank statements, often proceed on BAS and statements, especially when the agent’s letter is clear.
• Banks generally prefer to wait for the lodged return.

That’s why matching matters. The same file can be a “come back later” at one lender and a straightforward approval at another.

Illustrative example: a return with the agent in March

Illustrative only; not a real business.

A sole-trader carpenter wants $40,000 in March for a new ute deposit and tools. His last lodged return is for the year before last. The latest one is with his registered tax agent, due under their lodgement arrangements a couple of months later.

He supplies the agent’s letter confirming the return is in preparation, the expected lodgement date and that all BAS are current; his last notice of assessment; four lodged BAS; twelve months of business statements; and a nil ATO account balance. A statement-based lender assesses him on the BAS and statements without waiting for the return.

The short version

• Find out the real due date from your agent.
• Get a short, specific letter from them.
• Download your ATO records, especially the account statement.
• Cover the income picture with BAS and bank statements.
• Put it all on one page.

Ready to put it in front of a lender?

If your return is in progress and the rest of your evidence is in order, there’s often no need to wait. Start a short enquiry and tell us where your return is at. There’s no credit check when you first enquire, your details stay with one team rather than being fanned out to lenders, and a real person will call to talk it through.

Be accurate about the status on the form: in preparation, overdue, or not started. It lets us choose a lender that’s comfortable with exactly your situation. See what’s possible now.