Yahoo Finance ATO’s stern warning to Aussies with a tax bill
The ATO will be taking “swift and firm” actions against taxpayers who don’t pay their bill on time.
More Aussies will owe money to the tax office this year and the Australian Taxation Office (ATO) has warned them to pay their bill on time.
Individuals who owe money to the ATO must pay their tax bill by November 21, 2023 to avoid penalties and interest charges. Those who used a registered tax agent to lodge their 2022-23 tax return may have a later due date.
ATO assistant commissioner Jillian Kitto said paying tax was not optional and warned that anyone who missed their payment due date should not expect interest or penalties to be excused.
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“Our preferred approach is to work with you through engagement rather than enforcement, and we expect anyone who can’t pay on time to reach out to us or their tax professional before their bill is due,” Kitto said.
If you can’t pay your tax bill in full, Kitto said you may be eligible for a payment plan with the ATO.
“However, it’s likely that you will be better off financially if you pay in full and on time, rather than arranging a payment plan,” Kitto said.
“It is in your best interest to engage with the ATO before the bill is due if you can’t pay in full and on time. This means engaging with us before it becomes a tax debt - where interest will accrue daily - and before we take firmer action.”
Interest on overdue tax debts compounds daily at an annual rate of 11.15 per cent.
The ATO said it would take “swift and firm actions” against taxpayers, including businesses, who chose not to engage or didn’t pay on time.
Aussies hit with tax bills
The ATO previously warned that most Aussies would see a lower tax refund, while some might actually owe money.
This is partly due to the low and middle income tax offset (LMITO) coming to an end on June 30, 2022.
Nicknamed the “lamington”, it previously gave taxpayers earning up to $126,000 per year a tax break of up to $1,500, depending on their taxable income.
Aussies have until October 31 to lodge their tax returns or engage with a registered tax agent. Those who miss this deadline risk being fined.
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