Attention, Aussies: Are YOU at risk of a snowballing $330 fine? Find out now!
- Replies 17
As the deadline for the 2023-2024 tax return looms, many Australians could be facing a financial headache if they don't act promptly.
As the nation grapples with changing laws and increased scrutiny, many individuals are unaware of the potential penalties that could affect them.
This situation underscores the importance of staying informed about legal requirements to avoid financial repercussions.
The clock is ticking, and with just over four weeks remaining to file your taxes, it's time to get your financial affairs in order.
As of September 22, while 7.9 million people have already lodged their tax returns, there are still millions more who could be hit with a hefty fine if they fail to meet the October 31 deadline.
The Australian Taxation Office (ATO) has set a fine of $330 for every 28 days that your tax return is overdue.
This penalty can accumulate up to five times, which means procrastination could cost you as much as $1,650.
It's a sum that could put a serious dent in anyone's budget, especially for those who are managing their finances carefully in retirement.
Rob Thomson, ATO Assistant Commissioner, has issued a call to action for those dragging their feet: lodge your tax returns now to avoid these late lodgment penalties.
‘If you believe you may have difficulty meeting your tax obligations, contact the ATO prior to the deadline to lodge so that we can take your circumstances into account,’ Mr Thomson advised.
‘It is your choice if you lodge yourself or use a registered tax agent.’
For those with straightforward tax affairs, Mr Thomson recommended using myTax, the online lodging system.
Most of your information will be pre-filled, simplifying the process.
‘You simply need to check your details, add any additional income, and claim the deductions you're entitled to,’ the Assistant Commissioner explained.
‘For those with more complex affairs, you may want to consider engaging a registered tax agent.’
It's also important to remember that the ATO expects you to have proof of any deductions you're claiming.
Don't fall into the trap of copying last year's claims without considering changes in your circumstances.
Job changes, for example, can affect the deductions you're entitled to.
‘We see a lot of people changing jobs but not their claims,’ Mr Thomson pointed out.
‘We want people to get their deductions right on the first go and claim what they are entitled to, nothing more, nothing less.’
If you do miss the October 31 deadline, don't panic just yet. The ATO will reach out to you, typically with a phone call or in writing, to remind you of your obligations.
‘We recognise that sometimes people don't meet their lodgment obligations on time, even with the best intentions,’ the ATO advice stated.
‘Generally, we don't apply penalties in isolated cases of late lodgment.’
‘We consider your circumstances when deciding what action to take,’ it continued.
Should you find yourself fined, the ATO will issue a written notice explaining the reason for the penalty and the amount due.
And if you've lodged your tax return but owe money to the ATO, keep an eye on another important date: November 21. That's the deadline to settle your bill to avoid accruing interest.
However, your due date may be extended if you file your return through a registered tax agent.
With many Australians facing potential fines for late tax returns, it's crucial to stay informed about financial responsibilities and deadlines.
This urgency extends to various government processes, including important notifications from Centrelink that require immediate attention.
Understanding these obligations not only helps avoid penalties but also ensures that you are maximising your entitlements.
So, dear members of the Seniors Discount Club, don't let this fine snowball into a mountain of stress. Take action now, seek assistance if needed, and ensure you're not caught out by the looming deadline.
Have you had experiences with tax time pressures or tips for managing the process smoothly? Share your stories and advice in the comments below—your insights could be invaluable to fellow readers!
As the nation grapples with changing laws and increased scrutiny, many individuals are unaware of the potential penalties that could affect them.
This situation underscores the importance of staying informed about legal requirements to avoid financial repercussions.
The clock is ticking, and with just over four weeks remaining to file your taxes, it's time to get your financial affairs in order.
As of September 22, while 7.9 million people have already lodged their tax returns, there are still millions more who could be hit with a hefty fine if they fail to meet the October 31 deadline.
ATO has issued a warning that failing to submit tax returns by the deadline incurs a $330 fine every 28 days, potentially escalating to a maximum of $1,650. Credit: Shutterstock
The Australian Taxation Office (ATO) has set a fine of $330 for every 28 days that your tax return is overdue.
This penalty can accumulate up to five times, which means procrastination could cost you as much as $1,650.
It's a sum that could put a serious dent in anyone's budget, especially for those who are managing their finances carefully in retirement.
Rob Thomson, ATO Assistant Commissioner, has issued a call to action for those dragging their feet: lodge your tax returns now to avoid these late lodgment penalties.
‘If you believe you may have difficulty meeting your tax obligations, contact the ATO prior to the deadline to lodge so that we can take your circumstances into account,’ Mr Thomson advised.
‘It is your choice if you lodge yourself or use a registered tax agent.’
For those with straightforward tax affairs, Mr Thomson recommended using myTax, the online lodging system.
Most of your information will be pre-filled, simplifying the process.
‘You simply need to check your details, add any additional income, and claim the deductions you're entitled to,’ the Assistant Commissioner explained.
‘For those with more complex affairs, you may want to consider engaging a registered tax agent.’
It's also important to remember that the ATO expects you to have proof of any deductions you're claiming.
Don't fall into the trap of copying last year's claims without considering changes in your circumstances.
Job changes, for example, can affect the deductions you're entitled to.
‘We see a lot of people changing jobs but not their claims,’ Mr Thomson pointed out.
‘We want people to get their deductions right on the first go and claim what they are entitled to, nothing more, nothing less.’
If you do miss the October 31 deadline, don't panic just yet. The ATO will reach out to you, typically with a phone call or in writing, to remind you of your obligations.
‘We recognise that sometimes people don't meet their lodgment obligations on time, even with the best intentions,’ the ATO advice stated.
‘Generally, we don't apply penalties in isolated cases of late lodgment.’
‘We consider your circumstances when deciding what action to take,’ it continued.
Should you find yourself fined, the ATO will issue a written notice explaining the reason for the penalty and the amount due.
And if you've lodged your tax return but owe money to the ATO, keep an eye on another important date: November 21. That's the deadline to settle your bill to avoid accruing interest.
However, your due date may be extended if you file your return through a registered tax agent.
With many Australians facing potential fines for late tax returns, it's crucial to stay informed about financial responsibilities and deadlines.
This urgency extends to various government processes, including important notifications from Centrelink that require immediate attention.
Understanding these obligations not only helps avoid penalties but also ensures that you are maximising your entitlements.
Have you had experiences with tax time pressures or tips for managing the process smoothly? Share your stories and advice in the comments below—your insights could be invaluable to fellow readers!
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