If you don’t lodge by 31 October 2023 (or haven’t registered with an agent by that date), you could be looking at a stiff fine for not lodging a tax return, says H&R Block tax expert Mark Chapman.
The so-called ‘failure to lodge’ penalty is calculated at the rate of one penalty unit for each period of 28 days or part thereof that the return is overdue, up to a maximum of five penalty units. The value of a penalty unit is currently $313 so the maximum penalty which can be applied for an individual is $1565.
Mr Chapman says the good news is that while the penalty is usually applied automatically, it is not normally applied to returns that either have a nil result or generate a refund. In addition, where a penalty is applied, the ATO will sometimes remit it where it is “fair and reasonable to do so”, for example in the event of natural disaster or serious illness.
As a reminder, most people who earn more than the tax-free threshold – currently $18,200 – are required to lodge a tax return. In some cases, you may be required to lodge even if you earn less than that amount, for example if you worked and had tax deducted from your pay, Mr Chapman says.
The deadline for lodging your tax return is 31 October 2023. But you can lodge much later than that without being penalised – you simply need to be registered as a tax agent client by 31 October and you can lodge your tax return through that agent as late as 15 May 2024.
Do you do your own tax or get an agent to do it for you? Have you ever upset the Tax Office?
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