Yahoo Finance ATO tax deadline: Last chance to avoid $313 fine
Aussies have until October 31 to lodge their tax returns.
Aussies have one week left to lodge their tax returns for the 2022-23 financial year, or risk being hit with a hefty fine.
The fine starts at $313 but will keep getting bigger the longer your tax return is overdue and can reach a maximum of $1,565.
The Australian Taxation Office (ATO) found more than 7.9 million people had already lodged their tax returns at the end of September, which is about 400,000 fewer than last year.
When is the tax deadline?
Aussies have until October 31 to lodge their tax return if they are doing it themselves, or engage with a registered tax agent.
If you are getting a tax agent to do your tax return, they will have until May 15, 2024 to lodge your tax return.
Also read: New ATO rules for 2023: How the way you claim tax has changed
Also read: ATO’s urgent warning to 400,000 Aussies
What happens if I miss the tax deadline?
If you miss the deadline, you can be hit with a fine for not lodging.
The fine starts at $313 for the first 28 days it is overdue. It then increases a further $313 every 28 days it is late, up to a maximum of $1,565.
H&R Block director of tax communications Mark Chapman said there were some circumstances where Aussies may be able to avoid being fined.
“The good news is that, whilst the penalty is normally applied automatically, it is not normally applied to returns that either have a nil result or generate a refund,” Chapman explained.
“In addition, where a penalty is applied, the ATO will sometimes remit it where it is ‘fair and reasonable to do so’, for example, in the event of natural disaster or serious illness.”
When will I receive my tax refund?
If you lodged your tax return online, you should receive any tax refund within two weeks. Paper tax returns are processed manually and can take up to 10 weeks.
Once you receive a notification your refund has been processed, it may take up to five business days to hit your nominated bank account, depending on your bank.
The ATO previously warned that most Aussies would receive a lower tax return this year, while some might receive nothing at all, or owe money.
This is partly due to the low and middle income tax offset (LMITO) - which gave a tax break of up to $1,500 - coming to an end.
When do I have to pay any tax bill?
If you owe money to the ATO, the deadline for payment is November 21, 2023, even if you lodge your tax return late.
If you miss this deadline, you will be charged interest on any amount owing. Interest will compound daily at an annual rate of 11.15 per cent.
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