Australians are being told they risk a sizable charge if they put off filing their tax return. The Australian Taxation Office has until October 31st for anyone planning to file their own return.
A $313 late lodgement fine could be assessed to anyone who misses the deadline. This can go up by an additional $313 every 28 days the return is overdue, with a maximum of $1,565. There is, however, one simple workaround that enables anyone who is running low on time to buy a little extra time.
The ATO extends the ability of registered tax agents to file taxes on behalf of clients until May 15, 2024. Anyone who is ‘self-lodging’ who is running out of time can register with a tax agent and take advantage of this extension, but they must do so by the end of October.
According to ATO data, 70% of tax returns were filed by tax agents in 2019–20. Indignant Australians vented their rage on social media during tax season this year after unexpectedly owing the ATO money or receiving a smaller refund than they believed they were entitled to.
The elimination of the low-and-middle income tax offset (LMITO) this year was a significant contributing factor. The offset reduced taxes by up to $1500 for persons making between $37,000 and $126,000 annually.
One expert cautioned, meanwhile, that due to people frequently filing their own taxes wrongly, they received lower sums or owing the ATO money. When customers submit me their tax returns to verify, the majority of the issues I find are user errors from filling out your own tax return, Two Sides Accounting’s founder and director, Natalie Lennon, provided more information.
As long as you pay attention to the small print and comprehend how returns operate, she continued, it is “totally fine” to prepare your own tax return. For those who are preparing their own returns before the deadline of October 31, the strain is only increasing.
It could be wise to take the pinch of paying a fee and register with an agent given the mounting pressure on anyone preparing their own return before the October 31 deadline. The ATO stated in reaction to a recent audit of tax professionals that “tax practitioners are one of the ATO’s key partners and we value the strong collaborative relationship that exists.”
“We are very pleased that the audit recognizes the strength of our approach to consultation and the services and support we provide to tax practitioners. We are very proud of our engagement with tax practitioners.”
The Australian Taxation Office has until October 31st for anyone planning to file their own return. A $313 late lodgement penalty could be assessed to anyone who misses the deadline. This can go up by an additional $313 every 28 days the return is overdue, with a maximum of $1,565.
