As the deadline for lodging personal tax returns in Australia rapidly approaches, millions of Australians find themselves at risk of facing a $313 fine. Recent data released by the Australian Taxation Office (ATO) reveals that approximately six million individual tax returns for the most recent financial year are yet to be filed.
With the official deadline set for October 31, 2023, it’s imperative for taxpayers to take action swiftly to avoid penalties. However, there is a lifeline for those who utilize the services of registered tax agents, with an extended deadline of May 15, 2024.
Individuals who choose to lodge their own tax returns and miss the deadline may face a late lodgement penalty of $313, which can escalate by an additional $313 every 28 days that the return remains outstanding, reaching a maximum of a substantial $1,565.
In 2019-20, tax agents handled 70 percent of tax returns, as per ATO data. This indicates that up to two million individuals intending to file their own returns this year should expedite the process to avoid the $313 fine.
Those who plan to self-lodge but are pressed for time have the option to register with a tax agent and benefit from the extended deadline, provided they register with their chosen agent before the end of October.
Rob Thomson, the ATO Assistant Commissioner, encouraged individuals with straightforward tax situations to approach their tax returns as if they were tackling a long-delayed DIY project.
Mr. Thomson emphasised that while DIY projects can become quite intricate, unlike assembling flatpack furniture, completing your own tax return can be straightforward, thanks to the pre-filled data and built-in assistance provided.
During this year’s tax season, many frustrated Australians turned to social media to express their anger when they unexpectedly found themselves owing money to the ATO or receiving a smaller refund than they had anticipated.
One significant factor contributing to this frustration was the removal of the low-and-middle income tax offset (LMITO) for this year.