Aussies with a tax bill have until midnight to pay up, or risk being hit with even bigger costs.
If you lodged your tax return yourself for the 2022-23 financial year, you have until November 21 to pay your tax bill. The due date may be later for those who use a registered tax agent to lodge.
From tomorrow (November 22), the Australian Taxation Office (ATO) will charge interest on your unpaid bill and this amount will grow each day your debt remains unpaid. Interest on overdue tax debts currently compounds daily at an annual rate of 11.15 per cent.
Have you been hit with a big tax bill? Contact firstname.lastname@example.org
ATO assistant commissioner Jillian Kitto said anyone unable to pay on time should reach out to the ATO or their tax professional before their bill is due.
“If you can’t pay your tax bill in full, you may be eligible for a payment plan. 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 previously.
“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.”
What is a payment plan?
A payment plan allows you to break down your tax payment into smaller amounts made via installments either weekly, fortnightly or monthly.
The ATO said the installments would be spread over the shortest possible fixed period of time to minimise the interest you would be charged. You can also make additional voluntary payments or pay off the debt at any time.
You may be able to set up a payment plan online, or contact the ATO for assistance and discuss your individual circumstances.
More Aussies hit with tax bills
More Aussies would have received a lower tax refund or be hit with a tax bill this year.
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 temporary tax break of up to $1,500, depending on their income.