The October 31 deadline for submitting your tax return with the Australian Taxation Office (ATO) is just around the corner, and if you’re not careful, you could end up with a hefty penalty. In fact, Australians who miss this deadline may face a fine of up to $1,650 – talk about adding stress to your already busy end of year! But don’t panic; there are ways to avoid the chaos and get your return in on time without the drama.
Time is Running Out: The October 31 Deadline
Australians have one month left to lodge their tax returns or enlist a registered tax agent to help. If you haven’t filed yet, now’s the time to get your ducks in a row. According to Mark Chapman, Director of Tax Communications at H&R Block, missing the deadline without a registered tax agent means you could incur an escalating penalty. “The ATO applies a failure to lodge on time penalty of $330 for every 28 days your return is overdue,” Chapman explained. “This can rack up quickly, with a maximum fine of $1,650.” So, in short, the longer you wait, the higher your fine could go.
Penalties, Interest, and What You Can Do About It
What’s worse, if you owe taxes, interest will accumulate until you pay off your debt. The best way to avoid this is to stay ahead of the game. If you’re scrambling to get everything sorted, don’t worry—there’s still a way to ease the pressure. Engaging a registered tax agent before the October 31 deadline can grant you an automatic extension, sometimes giving you until May of next year to submit your return. This is a lifesaver if you need extra time to gather documents or just want to avoid the stress of last-minute filing.
DIY Filing: A Helpful Tool for the Brave
For those who prefer to do their taxes themselves, the ATO’s online service, myTax, makes it relatively easy. Most of your details will already be pre-filled, so all you need to do is check for accuracy, add any missing income, and claim deductions where applicable. The ATO also provides 40 industry-specific guides to help you understand what you can claim and what documents you’ll need. It’s a good idea to take advantage of these resources to ensure your return is accurate and complete.
What If You Owe Money? How to Handle a Tax Bill
Now, let’s say you’ve filed, but when the notice of assessment arrives, you find you owe money. First off, don’t ignore it. The ATO gives you 21 days to pay from the issue date of your notice. If you can’t pay in full, reach out to them early. The ATO offers payment plans, including instalments, so you don’t have to worry about paying everything at once. “The key is to engage with them early,” Chapman tells Yahoo Finance, “It reduces the risk of additional penalties and helps minimize interest charges.”
In the end, the best strategy is to start early, file on time, or work with a tax agent to buy yourself extra time. The last thing you want is a penalty hanging over your head when the holiday season arrives. So, avoid the stress and tackle your tax return now!
