Avoid hefty fines with this critical tax deadline
- Replies 2
As the leaves begin to fall and the air becomes crisper, it's not just a change in the seasons that's upon everyone; it's also a reminder that tax time is just around the corner.
With the end of the financial year on July 1, it's crucial to have your affairs in order to avoid a hefty fine from the Australian Taxation Office (ATO).
For those of you lodging your own tax return, the key date to remember is October 31. Miss this deadline, and you could be facing a penalty starting at $313.
Now, if you're working with a tax agent, you're in luck. You get a bit of a reprieve with a later deadline.
However, don't get too comfortable. If you haven't lodged your tax return yourself or registered with a tax agent by the end of October, the ATO will start to look your way, and that initial $313 fine will increase every 28 days, up to a maximum of five times.
That means the fine could balloon to a staggering $1,565.
For medium and large entities, the stakes are even higher. The ATO isn't shy about multiplying the fine by two and five, respectively.
But what happens if you forget to lodge? The ATO said they'll give you a nudge, either by phone or in writing, to remind you that you've missed the deadline.
They stated: ‘We recognise that sometimes people don’t meet their lodgment obligations on time, even with the best intentions.’
‘Generally, we don’t apply penalties in isolated cases of late lodgment. We consider your circumstances when deciding what action to take.’
Should the ATO decide to impose a penalty, they'll send you a written notice detailing the reason for the penalty and the amount.
Another date to circle in red on your calendar is November 21.
If you're expecting a tax bill this year and you've lodged your return yourself, this is the deadline to pay your bill to avoid interest charges.
As for what the ATO might be scrutinising this year, Mark Chapman, the Director of Tax Communications at H&R Block Australia, shared his insights.
The ATO tends to focus on areas where taxpayers commonly make errors, whether by accident or design.
This year, Chapman expects them to keep a close eye on record keeping, work-related expenses, rental property income and deductions, sharing economy income, and capital gains from various sources, including crypto assets, property, and shares.
Chapman advised taxpayers to get their supporting documents in order sooner rather than later.
He said: ‘People should make sure their records are up-to-date.’
‘The main thing is to claim everything you’re entitled to, and obviously, that depends on your specific job, so it may be worthwhile talking to a tax accountant to find out what you can claim,’ he added.
For more information about lodging your taxes, you may visit the ATO website here.
So, members, as we navigate the complexities of tax time, let's be proactive. Mark those deadlines, gather your documents, and if in doubt, seek professional advice.
We'd love to hear your tax time stories and tips. Do you have a system for lodging taxes that keeps you in the clear? Share your experiences in the comments below.
With the end of the financial year on July 1, it's crucial to have your affairs in order to avoid a hefty fine from the Australian Taxation Office (ATO).
For those of you lodging your own tax return, the key date to remember is October 31. Miss this deadline, and you could be facing a penalty starting at $313.
Now, if you're working with a tax agent, you're in luck. You get a bit of a reprieve with a later deadline.
Lodge your tax return by October 31 to avoid ATO penalties. Image source: Freepik
However, don't get too comfortable. If you haven't lodged your tax return yourself or registered with a tax agent by the end of October, the ATO will start to look your way, and that initial $313 fine will increase every 28 days, up to a maximum of five times.
That means the fine could balloon to a staggering $1,565.
For medium and large entities, the stakes are even higher. The ATO isn't shy about multiplying the fine by two and five, respectively.
But what happens if you forget to lodge? The ATO said they'll give you a nudge, either by phone or in writing, to remind you that you've missed the deadline.
They stated: ‘We recognise that sometimes people don’t meet their lodgment obligations on time, even with the best intentions.’
‘Generally, we don’t apply penalties in isolated cases of late lodgment. We consider your circumstances when deciding what action to take.’
Should the ATO decide to impose a penalty, they'll send you a written notice detailing the reason for the penalty and the amount.
Another date to circle in red on your calendar is November 21.
If you're expecting a tax bill this year and you've lodged your return yourself, this is the deadline to pay your bill to avoid interest charges.
As for what the ATO might be scrutinising this year, Mark Chapman, the Director of Tax Communications at H&R Block Australia, shared his insights.
The ATO tends to focus on areas where taxpayers commonly make errors, whether by accident or design.
This year, Chapman expects them to keep a close eye on record keeping, work-related expenses, rental property income and deductions, sharing economy income, and capital gains from various sources, including crypto assets, property, and shares.
Chapman advised taxpayers to get their supporting documents in order sooner rather than later.
He said: ‘People should make sure their records are up-to-date.’
‘The main thing is to claim everything you’re entitled to, and obviously, that depends on your specific job, so it may be worthwhile talking to a tax accountant to find out what you can claim,’ he added.
For more information about lodging your taxes, you may visit the ATO website here.
So, members, as we navigate the complexities of tax time, let's be proactive. Mark those deadlines, gather your documents, and if in doubt, seek professional advice.
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