Tax return: Australians face $313 fine if they miss deadline

Australians are being warned they could face a hefty fine if they don’t make a move with their tax return.

The deadline for anyone intending to file their return with the Australian Taxation Office is October 31.

Anyone who misses completion can be hit with a late fee of $313.

This can increase by another $313 every 28 days, the return remains outstanding, up to a maximum of $1,565.

However, there is an easy solution to allow anyone under the pump to buy a little extra time.

The ATO allows registered tax agents to file returns on behalf of clients until an extended deadline of 15 May 2024.

All self-employed people who are short on time can register with a tax agent and benefit from this extension, but they must register with their chosen agent before the end of October.

Tax agents filed 70 per cent of tax returns in 2019-2020, according to data from the ATO.

A flood of angry Australians took to social media at tax time this year to vent their fury after suddenly owing money to the ATO or getting a lower refund than they thought they were entitled to.

A big reason behind this was the Low and Middle Income Tax (LMITO) allowance that was scrapped this year.

The offset gave those earning between $37,000 and $126,000 a tax cut of up to $1,500.

However, one expert warned that people often received lower amounts or owed money to the ATO as a result of making the wrong return.

“Most of the errors we’re finding – people are sending me their tax returns and I’m checking them – most of them are user errors from doing your own tax return,” explained Natalie Lennon, founder and director of Two Sides Accounting .

She added that it was “totally fine to do your own tax return” as long as you pay attention to the details and understand how returns work.

With the pressure mounting on just about anyone to file their return before the October 31st deadline, it may be a good idea to pay a fee and register with an agent.

“Tax practitioners are one of the ATO’s key partners and we value the strong collaborative relationship that exists,” the ATO said in response to a recent audit of tax professionals.

“We are very proud of our engagement with tax practitioners and are pleased that the audit recognizes the strength of our approach to consultation and the services and support we provide to tax practitioners.”

The deadline for anyone intending to file their return with the Australian Taxation Office is October 31.

Anyone who misses completion can be hit with a late fee of $313.

This can increase by another $313 every 28 days, the return remains outstanding, up to a maximum of $1,565.