Life can get hectic, and sometimes tax deadlines are missed. If you haven’t lodged your tax return by the due date, it’s important to act quickly to minimise penalties and interest.
Immediate Steps to Take
- Lodge as soon as possible: The sooner you lodge, the better. Late lodgment penalties can be reduced or waived if you show a good reason.
- Contact your registered tax agent: If you use a tax agent, notify them immediately so they can assist you with lodgment and negotiations with the ATO.
- Pay any tax owed: Paying your tax liability promptly will reduce interest charges.
Understanding Possible Penalties
The ATO may impose Failure to Lodge (FTL) penalties if you miss your deadline without a valid reason. Penalties start at one penalty unit per 28 days late, up to a maximum. Additionally, the ATO charges interest on any unpaid tax.
How to Avoid Future Problems
- Request an extension: If you know you won’t meet a deadline, ask the ATO or your tax agent for an extension.
- Stay in communication: If you’re experiencing hardship or delays, inform the ATO — they may offer payment plans or other assistance.
- Use a tax agent: Registered tax agents often have extended lodgment deadlines and can help keep you compliant.
Final Tip
Missing your tax return deadline isn’t the end of the world, but the best approach is to act fast, lodge your return, and communicate with the ATO or your accountant. This approach reduces stress and financial consequences.
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