Avoid Hefty Fines: Key ATO Dates to Remember

1

The end of the financial year is marked by July 1, a significant date for all working Australians. But equally important is October 31, which is the default due date for filing tax returns, as set by the ATO. For those with tax agents, some flexibility with deadlines is granted, but for those handling their taxes independently, meeting the October 31 deadline is crucial.

Missing the filing deadline may lead to a "failure to lodge on time penalty," which can prove costly. The fine starts at one penalty unit, which currently amounts to $313, emphasizing the importance of submitting tax returns promptly. For each subsequent 28-day period that a tax return remains unfiled, the fine can stack up, potentially totaling up to $1565 after five penalty units.

For medium and large entities, the stakes are even higher. Such organizations face fines up to two to five times greater than those for individuals. Under normal circumstances, the ATO issues a warning via telephone or written correspondence. Upon imposition of a fine, the ATO articulates its reasoning, specifies the fine amount, and states the payment deadline.

Fortunately, there is provision for leniency within the ATO's system, especially under extenuating circumstances such as personal illness or natural disasters. The ATO reserves the right to offer remission of fines on a case-by-case basis.

Submission of an annual tax return is a legal obligation. Neglecting this duty triggers more than just fines; the ATO can issue a default assessment—a costly penalty for non-compliance. The default assessment includes a sizeable 75 percent administrative penalty of the tax owed—meaning for every $100 in tax debt, an additional $75 penalty is applied.

The ATO's repercussion measures also extend to audits and potential prosecution, further emphasizing the gravity of timely and accurate tax return submissions. Taxpayers should ensure they are prepared for tax season and seek assistance if required to avoid unnecessary financial burdens.

Published:Tuesday, 23rd Apr 2024
Source: Paige Estritori

Share this news item:

Finance News

Market Resilience Amid Strong Quarterly Inflation Data 30 Apr 2024: .Paige Estritori Following an initial surge, the Australian equities wavered into a close call as the market absorbed the recent inflation trends. Trading remained virtually unchanged with the S&P index dropping a nominal 0.5 points to settle at 7683, and the All Ordinaries dipping gently by 0.4 points, ending the day at 7937.5. - read more

Rates on the Rise: Market Jitters Lead to ASX Plunge 29 Apr 2024: .Paige Estritori Significant market movements underscore the growing concerns over a possible interest rate hike by the Reserve Bank of Australia, resulting in a marked drop in the nation’s share market. The S&P/ASX200 index faced a jarring fall, dropping 1.4 per cent which translates into a 107.1 point retreat, ending the session at 7575.9—a notable slump affecting a broad range of sectors. - read more

Tax Tension: Australians Grapple with Surging Income Levies as Inflation Undermines Earnings 26 Apr 2024: .Paige Estritori Amidst soaring living expenses and aggressive interest rate increases to quell inflation, Australians face an additional financial burden as income tax impositions outpace those in other affluent nations. This echelon of fiscal pressure is compounded by the unfortunate fact that their earnings are making a retreat in real value terms. - read more

Avoid Hefty Fines: Key ATO Dates to Remember 23 Apr 2024: .Paige Estritori Australians are being cautioned about the possibility of incurring a $313 penalty if they fail to observe two critical Australian Taxation Office (ATO) deadlines looming ahead. As tax season approaches, individuals must take note of these important dates to avoid fines. - read more

Inflation Outlook Brightens as Australia Braces for Key CPI Update 22 Apr 2024: .Paige Estritori A crucial announcement regarding consumer prices is forthcoming as the Reserve Bank of Australia (RBA) anxiously waits to steer its future monetary policy decisions. Analysts and economy watchers alike have their eyes locked onto the publication of first-quarter consumer price index (CPI) data from the Australian Bureau of Statistics, set to impact the nation's economic direction. - read more