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How to handle late or missing tax returns

 Late Tax Return? We will assist you in bringing up your Tax Returns if you haven't filed them for many years. Here is the information you need about late tax returns.


If I don't have a lot of income, do I need to file a tax return?

The answer is most likely yes In Australia, lodging a tax return (in most cases) is mandatory. The ATO can't assess your income tax liabilities without your tax return. By filing your tax return, the ATO will have information about your income, as well as other pertinent information. You may be exempted from tax in specific financial years (e.g. You have no income, but you must still update your information with ATO. To avoid penalties, you must lodge the update before the due date for your tax return.


What are the penalties and fines for late returns?


To overdue activity statements or tax returns (BAS and IAS), the ATO will apply a "failure lodge on time" penalty (FTL). For individuals and small businesses, the FTL can be up to $900 for each late return/activity statement and 4500 for large companies. A General Interest Charge (GIC), a 10%-14% annual compound rate, may be charged if an overdue tax return results in additional income tax. The GIC is often higher than the FTL in many cases. If:

  • There are more than one tax return pending
  • A poor history of lodgement,
  • You have not responded to a request to file your tax return

Are there any ways to reduce the penalties?


Yes. Yes. In exceptional circumstances, the ATO might reduce or remit the interest and penalties after you have filed all statements and returns. These conditions include, but not be limited to:

  • Instead of paying tax, you can get a refund from your tax return
  • There are significant domestic or personal problems beyond your control
  • You are coping with severe illness or caring for someone who is sick.
  • You were affected by a natural catastrophe
  • Other circumstances that are fair and reasonable

Before you apply the FTL penalty, here are some things to keep in mind:


  • The entity's compliance history.
  • It took a lot of effort to get lodgement.
  • Will include the value of information in the taxation document.
  • Whether the entity is fully aware of its lodgement obligations.
  • Whether the entity was allowed to comply.
  • The taxation document has been overdue for a long time.
  • Any contacts the entity or their representative might have made with the ATO before the due date to lodgement.

This is not a complete list.


Auditax Accountants  specializes in late lodgements. We can help you with your tax returns and minimize your FTL or GIC fees. We have a proven track record of highly successful FTL and GIC compliance rates. Please book an appointment online and speak to one of our friendly, highly experienced and qualified accountants to help you get your taxes up to date.

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