Yahoo Finance ATO tax deadline: Clock ticking to avoid major $330 fine
You'll need to have lodged your tax return by October 31 to ensure you don't cop the hefty fine.
Aussies only have a few weeks left to get their tax affairs in order or they face a hefty fine. While there are plenty of people around the country who rushed to get their tax returns done on July 1, others have taken a more relaxed approach.
But the clock is now ticking for Aussies who want to do their own tax return as they have until October 31 to lodge it with the Australian Taxation Office (ATO). If you lodge your tax return after this date, then you can get fined $330.
H&R Block director of tax communications and Yahoo Finance contributor Mark Chapman explained that the penalty was not normally applied to returns that either had a nil result or generated a refund.
"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," he said.
RELATED
Demands to keep multi-million dollar surcharge 'rort' alive in Australia: 'Lumber us all'
Major Centrelink change just days away to help struggling Aussies: One million every year
But be aware that the penalty will go up by $330 for every 28 days you are late and the maximum fine is $1,650.
As of 22 September, the ATO had received over 7.9 million income tax returns from individuals for the 2024 financial year. Over four million individuals self-lodged their income tax return, while 3.8 million chose to use a registered tax agent.
ATO Commissioner Rob Thomson said there were ways to avoid the huge bill, but you have to be proactive.
"If you believe you may have difficulty meeting your tax obligations, contact the ATO prior to the deadline to lodge so that we can take your circumstances into account," he revealed in a statement.
"It is your choice if you lodge yourself or use a registered tax agent.
Do you have a story? Email stew.perrie@yahooinc.com
"For taxpayers with simple tax affairs, lodging online through myTax is easy as most of the information you need is already pre-filled. You simply need to check your details, add any additional income, and claim the deductions you’re entitled to.
"For those with more complex affairs, you may want to consider engaging a registered tax agent."
If you're going down the route of using a tax agent, then you will have until the middle of May next year to complete it. But you still have to register with a tax agent before the October 31 deadline.
Don't delay, even if you owe the ATO money
The ATO said it understands that some people, especially in the middle of a cost-of-living crisis, might have been hesitant to do their tax return because they were expecting a bill.
But the tax office said it's better to confront it head-on rather than risk a fine.
"If you’re procrastinating to avoid a tax bill, it’s important to know that the due date to pay most tax bills is the same regardless of when you lodge," Thomson said.
He also warned that you need to make sure that your deductions, if you have any, are correct and not just repeated from last year as there could be differences between this and last financial year.
"If your circumstances have changed, then so will your deductions. We see a lot of people changing jobs but not their claims," he added.
"Remember, the job that you do affects the deductions you can claim, that’s why we have a series of 40 occupation and industry-specific guides which can assist you.
"We want people to get their deductions right on the first go and claim what they are entitled to – nothing more, nothing less."
When do I have to pay any tax bill?
If you owe money to the ATO, the deadline for payment is November 21, 2024, 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 11.38 per cent for the October to December quarter.
If you can't pay what you owe in full and on time, you may be able to set up a payment plan with the ATO.
This is where you pay an agreed amount weekly, fortnight or monthly until the balance is cleared.
Get the latest Yahoo Finance news - follow us on Facebook, LinkedIn and Instagram.
