If you’re an Australian taxpayer and have an overdue tax return, you might be wondering if it’s worth the effort to complete it. After all, it’s been a while since the due date, and you might think that the Australian Taxation Office (ATO) has forgotten about it. However, completing an overdue tax return is important for several reasons.
1. It’s a legal requirement
Firstly, it’s a legal requirement. As an Australian taxpayer, you’re obligated to lodge a tax return every year, even if you don’t earn any income. Failure to do so can result in penalties and fines from the ATO. The longer you wait to lodge your overdue tax return, the more severe the penalties can be. By completing your overdue tax return as soon as possible, you can avoid these penalties and keep on the right side of the law.
2. You may be owed money!
Secondly, completing your overdue tax return can help you claim any refunds or offsets you’re entitled to. If you’ve paid too much tax in previous years or have eligible deductions or offsets, you could be owed money by the ATO. However, you won’t receive any refunds until you’ve lodged your overdue tax return. By completing your overdue tax return, you can ensure that you receive any refunds or offsets you’re entitled to.
3. To avoid the ATO ‘black mark’
Thirdly, completing your overdue tax return can help you avoid future problems with the ATO. If you have outstanding tax returns, it’s likely that the ATO will be keeping a close eye on your tax affairs. This can result in increased scrutiny and audits of your future tax returns. By completing your overdue tax return, you can demonstrate to the ATO that you’re taking your tax obligations seriously and avoid any future problems.
4. When applying for a loan
Fourthly, try applying for a loan when you have outstanding returns. Bank says no every time as the risk is too high that you owe the ATO and don’t take your obligations seriously. Its the same with many other institutions.
5. To reduce your stress
Finally, completing your overdue tax return can give you peace of mind. Having an overdue tax return hanging over your head can be stressful and cause unnecessary worry. By completing your overdue tax return, you can put this issue behind you and move on with your life.
So, if you have an overdue tax return in Australia, it’s important to complete it as soon as possible. Not only is it a legal requirement, but it can also help you claim any refunds or offsets you’re entitled to, avoid future problems with the ATO, and give you peace of mind. If you need help with completing your overdue tax return, consider seeking assistance from a registered tax agent or accountant such as Accountants Direct who can guide you through the process and ensure that everything is done correctly.
We are specialists in getting overdue returns finalised and lodged, and can complete returns all the way back to 2001 with our tax software at low cost.
Don’t bury your head in the sand. Contact us today.
Stephen is the CEO of Accountants Direct and is a Professional Director, ASIC Agent, Startup Advisor & Investor & Capital Raising Specialist.
Contact Stephen or his team if you have any questions about this post or any business matter in general.