Tax Return:: Missed the Tax Return Deadline?

Hello, this is your tax accountant, P&C Tax Professionals.

The due date for lodging your 2023FY tax return has now passed. Hopefully, you have managed to lodge your tax return by the 31st October deadline, however, for those of you who are yet to lodge it, you may be wondering, what happens if I've missed the deadline? In this blog post, we will go through the consequences that arise as a result of lodging late and the actions you should take in order to avoid further penalties.

Generally, if you have missed your annual tax return deadline, you would fall under either one of the situations outlined below:

1. You did appoint a tax agent by 31st October

If you have already appointed a tax agent, such as P&C Tax Professionals, to help prepare and lodge your tax return, chances are the October deadline many of us are aware of will not be a concern for you.

Assuming all your previous tax return lodgements are up to date, you're likely covered by the special arrangements tax agents have with the ATO. These special arrangements permit tax agents to submit tax returns well past the 31st October deadline and to be more specific, you might have until May 15th next year to submit your return. Please note that specific deadlines vary for each client, so it's advisable to confirm with your tax agent when your exact deadline is.

Keep in mind, in order to be eligible for the extended deadline provided to tax agents, you need to have been officially listed as a client with that agent by October 31st. If you weren't registered by then, you won't have access to the extended deadlines. Nevertheless, you can still lodge your tax return through a tax agent however in this case, you would still be considered a late lodger.

2. You did not appoint a tax agent before 31st October

If this is the case for you, you were expected to have lodged your tax return by 31st October and now your tax return is overdue. According to the regulations, this might mean you are subject to a penalty for late lodgement. The fine begins at $313 for the first 28 days past the due date. Then the fine escalates by an additional $313 every subsequent 28-day period it remains overdue until it reaches the maximum fine value of $1,565.

Fortunately, although the penalty is typically enforced automatically, it generally doesn't apply to NIL returns or tax returns that result in a tax refund.

Furthermore, in cases where a penalty is imposed, the ATO might choose to waive it under situations deemed 'fair and reasonable,' such as instances involving natural disasters or severe illness.

If you’ve hit the maximum fine amount and you still haven’t lodged your overdue tax return, this could lead to even more severe consequences, potentially including legal action in extreme cases. Hence, it is highly advisable to lodge as soon as possible to minimise these penalties!

If this is you and you need help getting your tax return up to date (including any overdue tax returns for the previous years), please contact P&C Tax Professionals through our official Facebook page (P&C Tax Professionals – Australia) or send us an email with your enquiry to pnctax@naver.com.

Thank you and bye for now!