Yahoo Finance Tax time: How to avoid a $1,375 fine
Aussies who forget to lodge their tax return on time could be hit with a major fine.
It’s the end of the financial year, which means it's time to whip out your receipts and calculators so you can submit your tax return.
In fact, the average Aussie is set to get back around $2,900. But those who forget to lodge on time could be hit with a $1,375 fine.
To make sure you don’t miss the cut-off, here are all the important dates you need to know.
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When to file your tax return
Technically, the new financial year begins on July 1 but, this year, that lands on a Saturday, so you could file your return on Monday, July 3.
However, the ATO has warned Aussies against filing their tax return too early, saying it could actually delay your return.
ATO assistant commissioner Tim Loh said returns lodged in early July were more likely to be changed by the ATO compared to those lodged later.
“While you can lodge from 1 July, there is a much higher chance that your return will be missing important information if you lodge your return before late July. If you forget to include everything, it will slow down the progress of your return, and you’ll likely end up with more work to do down the track,” Loh said.
“No one likes life admin, and we want to help save you somewhere we can. If you have simple affairs, by waiting a few more weeks until all your information is pre-filled into your tax return, you’ll save yourself extra work and worry by getting it right the first time.”
Your employer has until July 31 to provide the ATO with your year-to-date salary, super contributions and PAYG details.
When you log into your MyGov account, your statement will be marked as “tax ready” once this information has been received.
The same goes for information from government agencies like Centrelink, health funds and banks: they have until July 31 to update the ATO.
So, the best option is to wait until your statement is “tax ready”, or until July 31 if you don’t want to be checking your account every day.
Deadline for filing your return
The deadline to file your return actually differs depending on whether you are lodging yourself or using a professional tax agent.
If you are lodging yourself, you have until October 31 to lodge your return. If you are using a tax agent, you will need to register with one before October 31 and they will have until May 15, 2024 to lodge your return.
Penalty for missing the tax deadline
If you have missed the tax deadline you can be hit with fines, which increase every 28 days it is late.
For the first 28 days the return is late, the fine is $275, but if you’re really late, that can increase to $1,375.
However, if you’re owed money by the ATO or generally have a good tax history, you can often get the fine withdrawn. The same goes for if you were unable to lodge due to a natural disaster or an illness.
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