Lodging your tax return each year is mandatory for the majority of income earners in Australia, but there is no need for it to be a daunting process. By staying organized and mindful of tax return deadlines, you can transform your yearly tax routine into a seamless and stress-free experience.
So, here in this article, we have gathered all the essential information you would require when it comes to lodging your own tax return online here in Australia.
Australian Tax Return Deadline
Wondering when your Australian tax return is due? Circle October 31 on your calendar—it’s the key date to remember. This is the deadline for self-lodgers to submit their tax returns for the previous financial year (July 1 – June 30).
What if you opt for a tax agent or accountant?
You’ll enjoy an extended deadline if you opt for a registered tax agent, often as late as May 15, depending on your circumstances.
Just remember, to qualify for this extension, you must sign up with the registered tax agent before October 31. If you have any outstanding tax returns from previous years, you might not be eligible for this extension.
So, if you wish to enjoy this extended deadline, contact Clear Tax Accountants today.
Note: If you’re engaging a tax agent for the first time or switching to a new one, make sure to reach out to them before October 31 to ensure you’re included in their lodgment program due dates.
How much can you earn before you pay tax in Australia?
For those who reside within Australia, the first $18,200 earned goes towards your tax-free threshold.
Choosing A Tax Agent- What Does The ATO Have To Say About This?
Selecting a tax agent is a crucial step in ensuring your tax affairs are handled efficiently and in compliance with regulations. A tax agent is a qualified professional who assists in preparing and lodging your income tax return, offering services both online and in person.
To guarantee consumer protection, it’s essential to engage a registered tax agent approved by the Tax Practitioners Board (TPB), says the Australian Taxation Office (ATO). Registered agents must meet and maintain specific standards of qualifications and experience, as well as adhere to a strict Code of Professional Conduct.
When choosing an agent, it’s advisable to have a discussion about the services they provide to establish clear expectations for both parties.
To make the process even easier, consider utilizing the myDeductions tool available in the ATO app. This tool allows you to easily maintain copies of your records and share them with your tax agent. However, remember that you’re ultimately responsible for the accuracy of the tax records you provide to your agent (as per the ATO website).
The myDeductions feature facilitates the tracking of various expenses, including general expenses like gifts and donations made to deductible gift recipients, as well as work-related deductions for individuals and sole traders. You have the option to upload your records directly or email them to your tax agent for seamless collaboration.
What If You Miss The Tax Return Deadline?
Missing a tax return deadline is not unheard of. Whether you were travelling, under the weather, or simply forgot, there are several reasons why you might find yourself in this situation. However, missing the due date could mean facing late lodgment penalties from the Australian Taxation Office (ATO), which can add up to $313 per 28-day period.
The key is to address the situation promptly by reaching out to the ATO. If you have supporting documentation, like a doctor’s certificate, it can help reduce potential penalties. The priority is to complete and submit your tax return as soon as possible to avoid additional repercussions.
It’s worth noting that if you have outstanding returns from previous years, even if you engage a registered tax agent to prepare them, you won’t benefit from extended deadlines for subsequent returns. Taking quick action on past returns is crucial.
Fines Or Penalties For Late Tax Returns
Late or past-year tax returns in Australia may result in penalties imposed by the Australian Taxation Office (ATO). One such penalty is the “failure to lodge on time penalty” (FTL), calculated at the rate of one penalty unit for every 28 days or part thereof that the return is overdue, with a maximum of five penalty units. For small businesses, the penalty is $313 per 28-day period.
The penalty calculation varies for different-sized businesses. Medium-sized businesses (assessable income between $1 million and $20 million) will face a penalty multiplied by two, while large businesses (assessable income over $20 million) will have the penalty amount multiplied by five.
In addition to the FTL penalty, the ATO may issue a default assessment warning letter. This letter outlines the income on which the default assessment may be based and specifies the deadline for lodging the overdue return to avoid a default assessment.
The likelihood of facing penalties increases if you have multiple outstanding tax returns, a history of late lodgements, or if you fail to comply with a request to submit your tax return. It’s essential to stay on top of your tax obligations to avoid these potential financial consequences.
What If You Do Not Have All The Documents And Receipts?
You can still submit a late tax return even if you don’t have all your documents and receipts. The Australian Taxation Office (ATO) gathers information about your income from various sources, such as banks, employers, and government agencies, which is matched to your Tax File Number.
While having receipts, statements, and other documentation on hand makes the process easier, it’s not essential for every deduction. Don’t worry if you can’t find all your paperwork; there are deductions you can claim without receipts.
At Clear Tax Accountants, we collaborate with you to identify relevant deductions and help you locate necessary information.
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Given the evolving nature of financial regulations and conditions, the accuracy and reliability of information may change over time. Users are urged to exercise due diligence and consult with a qualified financial professional for personalized advice. ‘Clear Tax Accountants’ bears no responsibility for direct or indirect consequences, encompassing financial loss or legal matters stemming from the use or misuse of the information on this website.
Please be aware that the information, by no means, is a substitute for financial advice.
