Step 1: DON’T panic!
If you missed the deadline for lodging your tax return, don’t worry; you’re not alone.
There are two scenarios to consider: you have been registered with a tax provider by the 31st of October, or you have not been registered with a tax provider by the 31st of October.
Let’s take a closer look at these 2 scenarios:
Scenario 1: Registered With A Tax Provider By October 31st
If you make use of a tax provider to complete your tax compliance, you possibly need not be concerned about the due date because it may not be applicable to you.
As long as all your previous years’ returns are lodged, and you don’t have outstanding tax debt you may be covered for a later lodgement as part of the arrangements that tax agents have with the tax office. This allows tax providers to lodge tax returns well after the October deadline.
In fact, you could have until the 15th of May to submit your tax. However, it’s important to confirm with your provider when your deadline is due.
To qualify, you should be registered with your registered tax agent provider by the 31st of October. If you aren’t, you can still lodge through a tax agent, but you’ll be part of the following category.
Scenario 2: Not Registered by October 31st
If you were not registered with a tax agent by the 31st of October, you are late. You may be liable for a late penalty. At the time of writing, the penalty starts at $222 for the first 28 days and increases by a further $222 after each additional 28-day period, to an amount of $1,110. These fines usually increase year on year.
If you delay lodging your tax return beyond that, even further action can be taken against you. Therefore, it’s crucial to lodge your return as soon as possible to ensure no or low penalties.
Having a history of generally being compliant with the ATO makes it more possible to get a late penalty reduced, provided there’s a valid reason for lodging late.
So, the quicker you lodge, the better you can explain that there are “justifying circumstances”.
The longer you leave lodging your late tax return, the greater the penalties and consequences can become. So keep calm and contact Accountants Direct today to get your tax compliance sorted out! You can find a dedicated tax specialist here.
Missed the deadline for lodging your tax return? Don’t panic! If you’re registered with a tax provider by the 31st of October, you may still have time to submit your return without penalty. However, if you’re not registered, you could be liable for a late penalty that increases over time. It’s essential to lodge your return as soon as possible to avoid further consequences.
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.