Avoiding the situation will not make the problem disappear; it will actually worsen it.
Get in touch to speak with our experienced tax consultants and take the first step towards the relief of having your tax returns and obligations back on track
The Australian Taxation Office (ATO) can impose costly late penalties and interest charges that only increase with time. The longer you delay lodging your overdue tax returns, the more difficult it will be to have these penalties reversed or reduced.
But don’t let that worry you either. Our experienced tax accountants have helped clients across Melbourne lodge up to 20 years of overdue tax returns. We’ve also successfully negotiated hundreds-of-thousands in debt reductions with the ATO on behalf of our clients.
In some cases we find that taxpayers, despite being behind with their taxes, are in fact due a tax refund in some or all of their late tax returns. It's possible that you are needlessly worrying about late tax returns when the ATO in fact owes you money.
The great news is that once you’re up to date with your tax returns, we’ll be here to assist you with staying on top of your future tax return obligations and ensure you never have an overdue tax return again.
Most individual taxpayers who earn more than the tax-free threshold or hold an ABN need to lodge an income tax return each year.
If you lodge a tax return yourself, you need to lodge your own tax return by 31 October in respect of the previous income year ended 30 June.
However, if you’re like 70% of Australians who prefer to lodge a tax return with the assistance of a Registered Tax Agent, you will generally enjoy an extended tax return due date of 15 May the following year. That’s almost an entire year after the end of the financial year.
If you are required to lodge tax returns and you've missed one or more tax return deadlines, we recommend that you contact us now to get your prior year tax returns up to date. You may even be due a tax refund.
If a tax return remains overdue, you risk receiving a default assessment from the ATO. This is generally the worst-case scenario and it's costly for you. The ATO prefers to work with taxpayers to help them address their tax return late lodgments, but in some cases the ATO will resort to a default assessment if the taxpayer is not cooperative.
If you’re a business with overdue tax returns you may also have other overdue taxes and reporting obligations such as:
Each of these overdue tax documents can attract a failure to lodge (FTL) penalty; and the FTL penalties and interest can mount up quite rapidly. Penalty units vary depending on the type of document that is outstanding. Currently, one penalty unit is $222 and can be imposed in multiples.
As a business owner, it is especially important that you meet your tax obligations on time. Overdue tax documents can often indicate lax business records and poor bookkeeping. Not only that, it can signal to the ATO the possibility of black economy activity and undeclared income. This will certainly subject your business to ATO scrutiny.
For more information about how we can assist you with Late and Overdue Tax Returns, please see our blog article here which will answer many of the frequently asked questions you have about overdue tax returns.
Or contact us now to speak with an experienced tax consultant and take the first step towards the relief of having your tax returns and obligations back on track.