Tax return: Australians face $313 fine if they miss deadline

Aussies are being warned they could face a hefty fine if they don’t get a move on with their tax return.

The deadline for anyone intending to lodge their own return with the Australian Taxation Office is October 31.

Anyone who misses the cut-off could be slapped with a late lodgement penalty of $313.

This can increase by a further $313 every 28 days the return remains outstanding, up to a maximum of a whopping $1,565.

However, there is one easy workaround to allow anyone who’s under the pump to buy a bit of extra time.

The ATO allows registered tax agents to lodge returns on behalf of clients until an extended deadline of May 15, 2024.

Anyone ‘self-lodging’ who is struggling for time can register with a tax agent and benefit from this extension, but they must register with their agent of choice before the end of October.

Tax agents lodged 70 per cent of tax returns in 2019-20, according to data from the ATO.

A flood of angry Aussies took to social media during tax time this year to vent their fury after unexpectedly owing the ATO money or getting a lower refund than they thought they were entitled to.

A big reason behind this was the low-and-middle income tax offset (LMITO) being scrapped this year.

The offset gave those earning between $37,000 and $126,000 a tax cut of up $1500.

However, one expert warned people often got lower amounts or owed the ATO money as a result of doing their own returns incorrectly.

However, one expert warned people often got lower amounts or owed the ATO money as a result of doing their own returns incorrectly 

‘Most of the errors that we are finding – people are sending me their tax returns and I am checking them – most of them are user errors from doing your own tax return,’ Natalie Lennon, founder and director of Two Sides Accounting explained.

She added that it was ‘totally fine to do your own tax return’ so long as you pay attention to the details and understand how returns work.

With pressure only hotting up for anyone doing their own return ahead of the October 31 deadline, it might be a good idea to take the hit of paying a fee and register with an agent.

‘Tax practitioners are one of the ATO’s key partners and we value the strong collaborative relationship that exists,’ the ATO said in response to a recent audit of tax professionals.

‘We are very proud of our engagement with tax practitioners and we are pleased the audit recognises the strength of our approach to consultation and the services and support we offer to tax practitioners.’

The deadline for anyone intending to lodge their own return with the Australian Taxation Office is October 31.

Anyone who misses the cut-off could be slapped with a late lodgement penalty of $313.

This can increase by a further $313 every 28 days the return remains outstanding, up to a maximum of a whopping $1,565.