Act Fast to Dodge a $1,650 Penalty as Tax Deadline Approaches | PRIMENEWSNOW

Understanding the Tax Return Process in Australia

Each year, countless Australians must submit their tax returns. For many, it’s a standard task on the financial to-do list: compile income information, claim deductions, and submit the return before the October 31 deadline (or later if using a registered tax agent). However, the Australian Taxation Office (ATO) is strict with those who fail to comply.

Consequences of Missing the Deadline

Not filing on time-or at all-can result in increasing penalties, unnecessary stress, and even legal issues.

Benefits of Using a Tax Agent

Taxpayers who engage a tax agent, such as those at H&R Block Australia, often have the advantage of extended deadlines, allowing them to file until May 15, 2026, without penalties.

Why Consider a Tax Agent?

Approximately 70% of taxpayers opt for a tax agent, a number that jumps to over 95% among small business owners. If you qualify for deductions, whether for business or employment, consulting an expert ensures you maximize your claims.

If meeting the October 31 deadline seems unlikely, consider visiting a tax agent. You must register with them by October 31 to benefit from the extended deadline.

Potential Penalties for Late Filing

What happens if you miss the deadline? Let’s explore the possible penalties and repercussions.

1. Administrative Penalties: Late Lodgment

The ATO may impose a Failure to Lodge (FTL) penalty if you don’t fulfill your obligations. This penalty is calculated in “penalty units,” currently set at $330 per unit (as of 2025) for each 28-day period your return is late, up to a maximum of five units ($1,650) for individuals.

• One day late incurs a $330 penalty.

• Three months late could result in a $990 penalty.

• Over five months late may lead to the maximum $1,650 penalty.

For larger entities, such as corporations, penalties can be significantly higher, potentially five times the individual amount, depending on the entity’s size.