What are the penalties of late tax return? While the tax return deadline may seem a long way off, it’s important to be aware of the consequences of filing late in Australia. The ATO takes lodging on time very seriously – here’s what can happen if you miss the due date:
Late tax return Penalty – This is $210 for individuals and $420 for companies. Further penalties apply monthly until you lodge.
General Interest Charge – If any tax is outstanding, you’ll be charged interest at over 10% annually from the original due date.
Reminders, Garnishee Warnings & Directions to Pay – The ATO will issue punishment notices if returns are very overdue before taking stronger actions.
Prosecution – In rare cases of deliberate delay or tax fraud, criminal prosecution is possible with potential jail time.
Dodgy Behavior is Often Caught – The ATO regularly matches third party income information against lodged returns to identify discrepancies.
What To Do If You’re Late – Lodge asap to minimize penalties. Ask for penalty remission if you have a reasonable excuse. Consider an agreed payment plan if tax is owed.
The best approach is to prepare your tax early and request help if needed – facing lodgment penalties is very costly. Take heed of deadlines to avoid complications later on.