With just one month left until the October 31 tax return deadline, millions of Australians are facing a familiar annual scramble.
But this year's deadline carries particular weight for seniors, many of whom may be dealing with changed financial circumstances, new income sources, or unfamiliar online systems.
The 2025 tax return deadline is 31 October 2025, and the consequences of missing it are more serious than many people realise. The ATO charges $330 every 28 days your return is late. The penalty can reach $1,650.
The current tax season by the numbers
As confirmed by the ATO, 1.6 million lodgments have been received. This is a 10 per cent decrease from the same time last year, indicating that our messaging around 'wait to lodge' is working with taxpayers choosing to lodge later.
As of 14 July, there have been 467,000 refunds issued to taxpayers, totalling almost $1.2 billion with an average refund amount of around $2,500.
'Tax time isn't just June and July. Your result for your tax is going to be dependent on what you are doing now'
This slower start to the tax season might seem reassuring, but it also means more people will be lodging closer to the deadline—potentially creating a bottleneck that could catch unprepared taxpayers off guard.
Why the penalty structure matters more now
Generally, we apply one penalty unit for every 28 days (or part thereof) that your tax return is overdue, to a maximum of 5 penalty units. In practical terms, this means:
- 1-28 days late: $330 penalty
- 29-56 days late: $660 penalty
- 57-84 days late: $990 penalty
- 85-112 days late: $1,320 penalty
- 113+ days late: $1,650 penalty (maximum)
This applies even if you are due a refund. The ATO doesn't distinguish between those who owe money and those expecting money back when it comes to late lodgement penalties.
Important for seniors: Penalty relief options
The ATO recognises 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.
If you have a reasonable excuse—such as illness, family circumstances, or technical difficulties—contact the ATO as soon as possible.
Your extension lifeline: registered tax agents
The good news is there's still time to secure an extension. You must register with a tax agent before 31st October to get the extension. You also need a good lodgement history and no serious unpaid tax debts. The extended deadline is usually 15 May of the following year.
If you're signed up with GoTax before 31 October, and you're not on the ATO's naughty list, we can usually score you an extension to 15 May 2026. This applies broadly across registered tax agents, not just specific services.
What happens beyond the financial penalty
The consequences of late lodgement extend far beyond the immediate financial hit. The ATO may issue you with a default assessment based on limited information, which is often much higher than what you actually owe.
You'll also lose access to certain payment options and arrangements, and in serious cases, the ATO can pursue garnishee orders against your bank accounts or employer.
For retirees and seniors, this can be particularly concerning as it might affect pension payments or other government benefits if debts aren't resolved promptly.
Processing times: what to expect
Most returns lodged online process within 2 weeks. However, Most paper tax returns are processed within 50 business days. For seniors who prefer paper returns, this extended processing time makes early lodgement even more critical.
For the 2025—26 period, the ATO continues to refine its automated systems, but the core processing timeline for most electronically lodged returns remains around two weeks.
Senior-specific considerations for tax time
Many seniors face unique circumstances that can complicate their tax situation:
Transitioning income sources: Moving from salary to pension, age pension, or part-time work can create confusion about what needs to be declared.
Investment income: Dividend income, managed fund distributions, and rental property income all need careful reporting.
Medical expenses: While most medical expenses are no longer deductible, some specific items for seniors may still qualify.
Downsizing contributions: Seniors who have downsized their home may be eligible for special superannuation contribution rules.
Essential steps for seniors before October 31
- Gather all income statements (including pension statements)
- Collect receipts for any work-related expenses
- Consider whether a tax agent might be worthwhile (especially if your situation has changed)
- If using myTax, ensure your myGov account is working properly well before the deadline
- Don't leave everything until the last week of October
Payment plans: if you end up with a tax bill
If you lodge late, any tax bill will be due 21 November 2025 (21 days after the tax return was due to be lodged). But if you can't pay immediately, options exist.
Tax agents can help negotiate payment arrangements, and We can also request a payment plan on your behalf to make any amount due to the ATO easier for you to manage.
The technology factor for seniors
One significant change from previous years is the ATO's increasing reliance on online systems. ATO second commissioner Jeremy Hirschhorn said it's better to go to registered tax agents rather than rely on AI.
'Tax is small changes in facts that make a big difference in outputs, and so it's very hard for an AI model to get those nuances.'
For seniors who might be tempted to use AI chatbots or online tools for tax advice, this warning is particularly relevant.
Don't panic if you're behind
For some people, overdue tax returns are a big source of stress, but that stress is really unnecessary. With the right help, it can be affordable and easy to get on top of late taxes.
The ATO never forgets. Never. That one return you skipped in 2022? Still there. Looming. Haunting your myGov like a ghost in a spreadsheet. But professional help can resolve even complex backlogs.
Taking action now
With exactly one month until the deadline, the key is taking action rather than postponing. Whether that means booking an appointment with a tax agent, gathering your documents, or simply logging into myGov to see what information is already pre-filled, starting the process now will save stress and potentially significant money.
The $1,650 penalty might seem like a distant threat, but at $330 every 28 days, it accumulates quickly. More importantly, the peace of mind that comes from meeting your tax obligations on time is invaluable.
What steps are you taking to ensure you meet the October 31 deadline? Have you encountered any particular challenges with this year's tax return process, or found helpful resources that other members might benefit from knowing about?
Original Article
https://au.finance.yahoo.com/news/a...eadline-looms-avoid-the-stress-190005020.html
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Cited text: We confirmed 1.6 million lodgments have been received. This is a 10 per cent decrease from the same time last year, indicating that our messaging around ‘wait...
Excerpt: As confirmed by the ATO, 1.6 million lodgments have been received. This is a 10 per cent decrease from the same time last year, indicating that our messaging around 'wait to lodge' is working with taxpayers choosing to lodge later.
https://www.ato.gov.au/tax-and-supe...tax-time-updates/tax-time-2025-update-15-july
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Cited text: You’ll also lose access to certain payment options and arrangements, and in serious cases, the ATO can pursue garnishee orders against your bank accou...
Excerpt: You'll also lose access to certain payment options and arrangements, and in serious cases, the ATO can pursue garnishee orders against your bank accounts or employer.
https://itp.com.au/2025-tax-return-deadlines/
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https://nanakaccountants.com.au/ato-balancing-account-how-long-australia-2025/
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Excerpt: If you lodge late, any tax bill will be due 21 November 2025 (21 days after the tax return was due to be lodged)
https://www.ato.gov.au/individuals-...n/mytax-instructions/2025/mytax-2025-estimate
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Cited text: For some people, overdue tax returns are a big source of stress, but that stress is really unnecessary. With the right help, it can be affordable and ...
Excerpt: For some people, overdue tax returns are a big source of stress, but that stress is really unnecessary.
https://www.etax.com.au/tax-deadline/
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Cited text: The ATO never forgets. Never. That one return you skipped in 2022? Still there. Looming. Haunting your myGov like a ghost in a spreadsheet.
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