MILLIONS OF AUSSIES ON NOTICE: Lodge Your Tax Return by October 31 or Face Devastating $1650 Penalty
- More than 2 million taxpayers have just weeks left to file their income tax returns or risk massive fines
- The Australian Taxation Office warns that delaying lodgement won’t buy you more time to pay – and penalties will apply
- Experts reveal the three golden rules for claiming deductions – and how to avoid a costly mistake
- With the deadline looming, here’s what you need to know to avoid a financial disaster
Time is running out for millions of Australians who are yet to lodge their tax returns, with the Australian Taxation Office (ATO) issuing a stark warning: file by October 31 or face penalties of up to $1650.
With just weeks left to go, more than 2 million taxpayers are still yet to lodge their income tax returns, despite over 8.7 million already doing so. ATO Assistant Commissioner Rob Thomson has urged those who are yet to file to do so immediately, warning that delaying lodgement won’t buy you more time to pay.
“There’s a bit of a myth that delaying lodgement of your tax return will buy you more time to pay – that’s not true,” Mr Thomson said. “If you have prepared your own tax return and incur a tax bill, it will be due on November 21.”
For individuals, the failure to lodge (FTL) on time penalty is calculated at one penalty unit ($330), increasing by a single penalty unit for every 28-day period (or part thereof) that the return is overdue. This can add up to a whopping $1650.
But it’s not just individuals who are at risk – medium entities, defined as those with assessable income or GST turnover of more than $1m and less than $20m, can face even higher penalties. “Penalty units are multiplied by two for medium entities,” Mr Thomson warned.
So, what can you do to avoid a costly mistake? Mr Thomson revealed the three golden rules for claiming deductions: “You must have spent the money yourself and weren’t reimbursed, the expense must directly relate to earning your income, and you must have a record of the purchase, usually in the form of a receipt, to prove it.”
With the deadline looming, don’t wait until it’s too late. Lodge your tax return today and avoid the devastating consequences of missing the October 31 deadline.