With the tax deadline fast approaching, millions of Australians are being reminded to lodge their tax returns by October 31. Missing this crucial date could result in hefty penalties, potentially escalating into severe legal consequences if left unchecked. With over 6.4 million returns already submitted, the clock is ticking for those still to file.
This year’s tax season is seeing many Australians receiving substantial refunds, but the Australian Taxation Office (ATO) is sending a clear warning: filing late can be costly. As the deadline looms, taxpayers are urged to ensure all income is disclosed and that they make the most of possible deductions before time runs out.
Why Filing on Time Is Crucial
The Australian Taxation Office has stated that failing to lodge a tax return by October 31 can result in penalties starting at $330. If a taxpayer delays beyond 28 days, the ATO may take further action, including prosecution in extreme cases. The ATO has also confirmed that they will contact late filers by phone or in writing to remind them of the overdue return.
As of the latest update, over 6.4 million Australians have already submitted their returns, and 4.8 million of them have received more than $12.7 billion in refunds. However, for the millions who have yet to file, there’s no time to waste. According to tax expert Mark Chapman, director of tax communications at H&R Block, Australians should not rush the process but take the time to carefully review their income and expenses.
“It’s as simple as having a full review of a taxpayer’s income during the course of the year and making sure it is all disclosed. That’s not just employment income, but also rental property income, any dividends from shares or interest from a bank account, any sharing economy income that you’ve derived during the year or any capital gains from buying and selling assets. ” Chapman advised.
Tips to Maximise Your Tax Return
For those nearing the October 31 deadline, the ATO stresses the importance of reviewing all income and ensuring accurate claims. This includes documenting any expenses related to employment, such as working from home costs, self-education, and work-related clothing. Failing to account for these could mean missing out on valuable tax offsets.
Chapman also recommends that taxpayers gather all necessary receipts to back up their claims, saying, “Equally, it is important to pull together all your receipts for your expenses and claim everything you’re entitled to claim.”
Tax professionals can also be invaluable in navigating this process. They can ensure your return is accurate, complete, and claims are maximised. Additionally, taxpayers who file through a tax agent may receive an extra six months to submit their return. “The cost of preparing your tax return is itself tax deductible if you use a tax agent. If you go out and spend $100 to $200 getting your tax return done this year, you can claim it next year.” Chapman added, making it a cost-effective option for many.
