The maximum fine handed out by the Australian Taxation Office (ATO) for not lodging your tax return by the 31 October deadline is $1,650!
Fines can start at $330 for being just one day overdue, then increase over time, as follows:
| Days overdue | Total fine amount |
|---|---|
| 1 – 28 days | $330 |
| 29 – 56 days | $660 |
| 57 – 84 days | $990 |
| 85 – 112 days | $1,320 |
| 113 – 140 days | $1,650 |
In addition to a fine, the ATO can also apply General Interest Charges (GIC), on any amount still owing.
- Note: The rate for GIC changes quarterly. At the time of writing this article, the rate is 11.38% per annum (Oct-Dec 2024).
For example: Danny has a tax bill of $1,700 but hasn’t lodged his tax return, created a payment plan or requested a lodgement deferral. In this instance, it’s quite possible that Danny could be asked to pay his original tax bill of $1700 but also lodgement penalties, as follows:
- A fine of up to $1650
- PLUS GIC of 11.38%, which compounds daily!
As you can see, neglecting your taxes, can be very costly and difficult to come back from (especially considering the ATO are aggressively pursuing overdue payments).
ATO late lodgement fines may apply from the 31 October tax deadline
The deadline for lodging your tax return in Australia is 31 October. From this date, you risk ATO late lodgement penalties, if you fail to lodge your tax return, submit a non-lodgement advice, or take steps to deal with any tax debt.
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How can Etax help you avoid a fine for not lodging a tax return?
We want to help you avoid an ATO late lodgement penalty and get the best outcome from your tax return each year. There are three ways you can do this:
- Keep your tax return lodgements up to date,
- If you didn’t work or earn an income, you still need to tell the ATO by completing a non-lodgement advice. We can do this for you… for free! Just let us know,
- If you owe the ATO money, set up a payment plan with the help of your Etax accountant.
If you think any of these apply to you, get in touch with our team on 1300 693 829. Alternatively, email [email protected] to avoid any possible ATO troubles.
*You must have a good tax history with the ATO. Otherwise you might not qualify for any deadline extensions and may face a financial penalty. Unpaid ATO debts or problems with ATO payment history may prevent an extension being issued. In which case, the 31 October deadline is important for you to follow. Our staff can help you lodge your return promptly and can help arrange ATO payment plans if required.
