Lodgment of tax return: Australian taxpayers who fail to lodge their tax returns before the deadline of Monday 1st November 2021 will risk being subjected to a fine of potentially up to $1110.
Typically, the deadline for taxpayers to submit their tax return is 31st October. However, due to the date falling on a Sunday in 2021, the last day to lodge a return is extended to 1st November 2021. This deadline applies to individuals lodging their tax returns themselves, not using a registered tax agent.
Failing to submit a tax return can result in a fine of one penalty unit, increasing by $222 every 28 days after the due date until submission. The Australian Tax Office (ATO) states that the maximum fine is five penalty units, or $1110.
If using a registered tax agent, such as an accountant or tax firm, taxpayers must engage with the agent before 31st October. The ATO often waives penalties for isolated cases of late lodgement and will issue a warning if lodgement is overdue. If applied, a penalty notice stating the amount and due date will be issued.
If a taxpayer owes money to the ATO and lodges their return late, they have until 21st November 2021 to pay the bill. The ATO advises lodging as soon as possible and offers payment plans for those finding it hard to pay on time.
Generally, Australian residents who earned more than $18,200 in the last financial year are required to submit a return.
Tax Return Amendments Required For Some Covid-19 Disaster Payment Recipients
The ATO advises Australians who received Covid-19 Disaster Payments in June 2021 and have already lodged their tax returns to lodge an amendment. This is due to new laws passed on 9th August, making these payments non-assessable, non-exempt income from 3rd June 2021. Those who lodged their 2020–21 tax return and included the payment as assessable income must lodge an amendment. Services Australia will reach out to impacted individuals.