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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.

In most years, the deadline for taxpayers to submit their tax return is the 31st October, however due to 31st October taking place on a Sunday this year, the last day to lodge a return is 1st November 2021.

These deadlines only apply if an individual is required to submit a tax return, and they choose to lodge it themselves without using a registered tax agent.

By failing to submit a tax return, the taxpayer will receive a fine of one penalty unit which increases by $222 every 28 days after the due date until the tax return is submitted.

The Australian Tax Office (ATO) says that the maximum fine is five penalty units, or $1110.

Lodgment Of Tax Return, If a taxpayer chooses to use the services of a registered tax agent (such as their local accountant or a large tax firm), they must engage with the tax agent before 31st October this year.

Despite the ominous fines, the tax office says in many cases it will not apply a penalty at all if it’s a one-off situation.

“We recognise that sometimes people don’t meet their lodgement obligations on time, even with the best intentions. Generally, we don’t apply penalties in isolated cases of late lodgement. We’ll warn you by phone or in writing if you’ve failed to lodge. If we apply FTL penalty, we’ll send you a penalty notice stating the amount and due date of the penalty,” read a statement published by the ATO.

If a taxpayer lodges their own tax return and it results in a bill where the taxpayer owes the ATO money, they have until Sunday 21st November 2021 to pay that bill even if they lodged the bill late.

“Even if you miss the due date, it is important to lodge as soon as you can. If you expect a tax bill, don’t delay lodging. The due date for payment when you lodge your own tax return is 21 November even if you lodge late. Interest will apply to any amount you owe after 21 November. If you’re finding it hard to pay on time, you can request a payment plan,” said a spokesperson for the ATO.

Generally speaking but not in all cases, if you are an Australian resident who earned more than $18,200 in the last financial year, you are required to submit a return.

Tax Return Amendments Required For Some Covid-19 Disaster Payment Recipients, Lodgment Of Tax Return

The Australian Tax Office (ATO) has advised Australians who received Covid-19 Disaster Payments in June 2021 and have already lodged their tax returns will now be required to lodge an amendment after new tax-free laws were passed.

The ATO’s guidance has come after new laws were passed through parliament on Monday 9th August ensuring that Covid-19 Disaster Payments dating back to its introduction on 3rd June 2021 will be treated as non-assessable non-exempt income.

Previously, these types of payments were classified as taxable income by the ATO, the Treasury and Services Australia, prior to Prime Minister Scott Morrison’s announcement in July that the changes would be introduced.

New legislation was then introduced at the start of August and successfuyly passed through the Parliament, making the Covid-19 Disaster Payments more generous than the $90 billion JobKeeper wage subsidy program, which was taxed.

Lodgment Of Tax Return, due to its retrospective application on 3rd June which was the day that Victoria entered its fourth lockdown some Australians will now be required to lodge an amendment if they have already lodged their 2020–21 tax return and included the payment as assessable income.

 “If your client received this payment from Services Australia due to the Greater Melbourne lockdowns in the 2020–21 income year and you’ve already lodged their tax return, you will need to lodge an amendment. Clients who received the payment on or after 1 July 2021 won’t need to include the amount as assessable income in their tax return next year,” said the ATO on Wednesday 11th August.

It has been reported that Services Australia will now reach out to impacted individuals through a myGov message and SMS.