Staying on top of tax return lodgment deadlines is essential for both tax return accountants and taxpayers. Missed deadlines can lead to penalties and stress.
When should you lodge your tax return in Australia?
The period covered by your tax return is from July 1 to June 30 of the income year. If you need to prepare a tax return, you must file it or engage a tax agent by 31 October. Tax return lodgment includes the money you earn and any expenses you are eligible to claim as a deduction. You can ask Melbourne accountants to prepare your tax return on your behalf.
A tax return form can be completed either online, on paper, or through a registered tax agent. Your tax return informs the ATO about:
- The money you earn
- If you are liable to claim expenses as deductions.
The ATO uses this detail to check if you:
- have paid the right amount of tax or too much tax
- must pay the Medicare levy or surcharge
- can get any tax offsets.
If you pay more tax than you have to, then you will get paid the extra amount. If you don’t pay the right amount, then you will receive a tax bill.
What are ATO tax penalties and charges?
Taxpayers who miss the tax return deadline could face tax penalties and interest charges from the ATO. Australian tax laws allow the ATO to apply fines or penalties of $313* for the following offences:
- Fail to submit a return or statement by the deadline
- Provide a wrong or misleading statement
- Fail to withhold required amounts under the PAYG system
- Incur other tax obligations.
Can a tax accountant help you get your overdue taxes up to date?
If you haven’t filed a tax return for a previous income year, it’s essential to catch up as soon as you can. Bringing your lodgments up to date can help you avoid interest on any tax debts and penalties for late filing. Your tax agent can help you by preparing and submitting your prior year’s tax returns. You can reach out to an accountant near you to get your overdue taxes updated. You can search for ‘accountant for small business near me’.
Penalties for late lodgment
If you miss the tax return deadline, you may be subject to a late lodgment penalty. ATO late lodgment penalties may apply of $313 per 28-day time period. Therefore, you need to deal with it as soon as possible by getting in touch with the ATO.
1 – 28 days — $313
29 – 56 days — $626
57 – 84 days — $939
85 – 112 days — $1,252
113+ days — $1,565
What are tax return lodgment options?
If you need to file a tax return, you can choose any of the following options based on your circumstances.
- You can use myTax to file your tax return online. It is a quick way to file a tax return.
- One of the best ways to file your tax return safely is by lodging through a registered tax agent. They can help you prepare and lodge your tax return on time to avoid tax penalties.
- The paper tax return can be used to file your tax return by mail. When lodging your tax return, it’s crucial to have organised records. This is where bookkeeping services come in to help you keep your business records organised.
When do you receive the FTL penalty?
You are likely to receive a Failure to Lodge (FTL) on-time penalty if you don’t lodge or report by that due date. This may include, filing your tax return, reporting pay-as-you-go instalments, GST or PAYG withholding on an activity statement by the due date.
How to waive the ATO penalty?
If you don’t agree with the ATO penalty, you can dispute it. Some types of fines you can only dispute by filing an objection. For all other types of penalties, you can request the ATO to remit or cancel the penalty.
Conclusion
The ATO imposes penalties on late or unpaid tax returns. Therefore, it’s essential to prepare and lodge your tax returns on time to avoid tax penalties. If you are unfamiliar with the tax return lodgment process, you can reach out to Reliable Melbourne Accountants.