Many people forget that 31 October is the deadline for submitting their individual tax return to the ATO. If you have missed the deadline, then we’re here to help layout your options so you can get your return completed and help avoid late lodgement penalties.
Are you due a tax refund?
If you are certain you will get a tax refund, late lodgement penalties will often not apply. For your own benefit, if you have overpaid on tax in the past financial year completing your tax return on time is simply in your best financial interest.
If you are unsure if you are due a tax refund, it’s best to assume you owe tax to avoid any potential late lodgement penalties.
Do you owe tax?
If you believe you will owe tax to the ATO then your tax return is due on 31 October each year if you lodge the tax return yourself. If you use a registered tax agent you may be able to extend the deadline up until May the following year in some circumstances. This extension requires you to be registered with a tax agent before 31 October and also that you don’t have any outstanding tax returns from previous years.
Not registered with a tax agent?
If you owe tax and are not registered with a tax agent before 31 October you will likely incur what is known as a ‘Failure to Lodge (FTL) penalty’. This penalty amounts to about $200 for the first 28 days after the lodgement deadline and increases by this amount each 28 days up to a maximum of just over $1000.
So, if you have recently missed the deadline, it pays to act fast to avoid further penalties and potential legal action along with an opportunity to request a remission.
Avoiding late lodgement penalties
If there were extenuating circumstances that prevented you from lodging your tax return on time, you may request a remission. A serious illness or a natural disaster for example may qualify you for a remission. However, it pays to apply for this as soon as possible.
Getting help with late lodgement
If you have missed the tax deadline having a registered tax agent act on your behalf is a good idea. They can first calculate if you owe tax, complete your tax return and lodge this with the ATO as soon as possible. They can also help request a remission on any late lodgement penalties that may apply.
Saige Accountants are Registered Tax Agents we can help with your personal tax returns and business tax returns. If you are notoriously late in getting your tax return lodged we can ensure you never miss a deadline and also allow you extra time if you need it. Tax preparation fees are also tax deductible. Talk to us about your taxation needs and call us on 02 4365 7222