Australians warned of hefty fines as tax return deadline looms

Australians have been urgently reminded that time is running out: they have just over a week to file their tax returns or face a hefty fine.

Aussies have until October 31 to file their 2022/2023 tax returns or face “swift and strong action” from the Australian Taxation Office (ATO) and face a fine of one fine, $313, for every day they are late.

The ATO has also reminded business owners of several important dates for filing tax returns, annual reports and paying superannuation to employees.

The maximum fine an individual or small business can face is $1,565, while a business making between $1 and 20 million will face a fine twice as much.

An extension of the deadline until May 14, 2024 can be done through an application that must be submitted through an accountant no later than October 31.

ATO Assistant Commissioner Jillian Kitto said paying taxes is not an option and anyone who misses the deadline should expect penalties and interest.

“It is in your best interests to contact the ATO before the bill is due if you are unable to pay in full and on time,” Ms Kitto said in a statement.

“This means engaging before it becomes a tax debt where interest accrues daily – and before we take stronger action.”

Those who cannot pay their tax bill due to financial difficulties may be eligible to pay off the tax in installments and thus avoid a penalty.

“We encourage people to get their tax and super affairs in order and to contact us before the deadline if they are experiencing financial difficulties,” Ms Kitto said.

‘However, chances are you will be better off financially if you pay in full and on time than if you agree to a payment plan.’

Most work expenses Aussies incur can be claimed on their tax returns, with everything from work-from-home expenses to handbags eligible.

Ms Kitto also urged business owners to ensure that their employees’ super is paid by October 28 in addition to the submission of their quarterly reports.

Individuals and small businesses can be fined $313 for each day their tax return is late, while a company making between $1 million and $20 million will be fined twice as much (stock image)

Aussies have also been reminded what they can and cannot claim as tax write-offs this year, with the cost of working from home and handbags all eligible to be claimed.

Chartered accountant Allan Mason worked with billionaire Kerry Packer at his company Consolidated Press Holdings.

The managing director of Encore Accounting and author of ‘Tax Secrets of the Rich’ told Daily Mail Australia his book contains ‘nuggets of truth’ that the ATO does not want taxpayers to know.

‘There are only two things certain in life: death and taxes. Well, I’ve been doing this for 40 years and I can tell you that death is certain, but taxes are not,” Mr Mason said.

“I’d say a good 10 to 20 percent of taxpayers are failing to claim the things they’re entitled to because they’re either lax or they just don’t know, and people are paying more in taxes as a result.”

WHAT AUSSIES CAN CLAIM ON THEIR TAX RETURNS THIS YEAR

Australians can start filing their tax returns after June 30 and have until October 31 to do so.

Below is a list of 10 ways employees can get the most out of their tax returns.

1. Work bag

Residents can reclaim the money they spent on a bag, as long as it is primarily used to transport work supplies between home and the office.

2. Travel

Drivers can keep a log of the miles they travel and must keep receipts of all expenses they have incurred, including food and accommodation.

3. Professional and Industry Guide

Workers have been told to consult the ATO’s occupational and industry guides to find out which items they can reclaim in their industry.

Employees who have to drive around a lot can also rely on their tax return

4. Costs for working from home

5. Pay investment property costs in advance

Homeowners with an investment property must pay their strata fees or insurance in advance to reduce the amount they can claim next year

6. Materials for self-study

Employees can also get cash back if they purchased materials to further their education in their industry. This includes books, magazines and newspapers.

7. Union Compensation

Employees can reclaim any fees they paid to be represented by a union.

8. Super contribution

Australians can make a one-off payment into their super at the end of the financial year from their after-tax savings.

9. Donate to charity

Residents can reclaim the money they donated to charity.

10. Invest under a company name

Invest money under a corporate structure to save 17 percent on your investment income.