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Avoiding Late Lodgement Penalties for Your 2024 Tax Return
October 14, 2024 |
With October drawing to a close, the deadline for lodging your 2024 tax return is fast approaching. The 31st of October is the final date to submit your return for individuals who prepare their own tax affairs. We understand that everyone has busy lives, and tax may not always be a priority. However, if you think you might not be able to lodge your tax return by the 31st of October, it’s crucial to consider engaging a registered tax agent before this deadline.
Over $1,000 Penalty for Late Lodgement?
The Australian Taxation Office (ATO) imposes penalties for failing to lodge tax returns on time. The penalty amount is determined based on the size of the entity and the period the return is overdue. For small entities, the penalty is calculated as 1 penalty unit for every 28-day period the return is late, up to a maximum of 5 penalty units. From 1st July 2023 to 30th June 2024, 1 penalty unit is valued at $313.
Here’s how the penalties accumulate:
- 28 days overdue: $313 penalty
- 56 days overdue: $626 penalty
- 84 days overdue: $939 penalty
- 112 days overdue: $1,252 penalty
- 140 days overdue: $1,565 penalty (maximum of 5 penalty units)
How Can I Avoid the Penalty?
The simplest way to avoid a late lodgement penalty is by lodging your tax return on time. If you anticipate not being able to meet the 31st of October deadline, engaging a registered tax agent is your best option. By registering with a tax agent before 31st October, you may be eligible for an extended deadline until mid-May of the following year. Make sure to confirm with your tax agent that you’re on their database before the 31st of October deadline to take advantage of this extension.
Why is My Deadline in October Even Though I am Registered with a Tax Agent?
Certain taxpayers may find that their lodgement deadline is set in October despite being registered with a tax agent. This typically happens due to specific circumstances, such as their tax liability status or lodgement history. If your previous year’s tax return was lodged after the due date, your current year’s deadline might reset to 31st October, even if you have engaged a tax agent.
It’s essential to liaise with your accountant before the end of October to confirm your lodgement deadline and plan your tax affairs accordingly.
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Conclusion
If you do not have a tax accountant looking after your tax affairs and you think you cannot meet the 31st of October deadline, reach out to Investax Group’s tax specialists today. Our team of experienced professionals can help you navigate the complexities of tax compliance and avoid late lodgement penalties. Contact us now to ensure you remain compliant and take advantage of the extended deadlines available for tax agent clients.