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Overdue Tax Lodgement

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If you are residing in Australia then you must file your tax return on or before the deadline, unless your income is exempt or falls below the tax-free threshold limit. It may happen that you forget to lodge your income tax return for a particular financial year. If this happens then your return becomes overdue and you might incur a penalty for the same.

In this article, we are going to guide you about various aspects of an overdue tax return and what to do if your return goes overdue.

Auditax Accountants Overdue Tax Returns

What is an Overdue Tax Return?

If you are an individual taxpayer in Australia, you must lodge your tax return by October 31 for the financial year ending June 30. However, if you delay in lodging your tax return then it will be known as an overdue tax return.

You might wonder what will happen if you miss the deadline of October 30. Can you still lodge the return? Yes, the overdue tax returns can be filed with the ATO however you might be penalized by the ATO for the delay in the lodgement of your tax returns.

To avoid paying any penalty it is advisable to lodge your tax returns before the deadline so that they do not become overdue. Auditax helps you finalize and lodge your returns well before time after taking into account all possible deductions that can be claimed by you so that your tax liability remains minimized.

What is The Penalty for Late Lodgement of Tax Returns?

If you delay in the lodgement of tax returns then you will invite a Failure To Lodge (FTL) penalty from the ATO. The penalty is charged @ 1 penalty unit for each period of 28 days or part thereof for which the return is overdue, up to a maximum of 5 penalty units. The value of one penalty unit is $210. This means that the minimum penalty that you can be charged if you delay your tax returns is $210 and the maximum penalty that can be levied is $1,050 i.e. 5 times the minimum penalty.

There are various factors that the ATO considers while charging a penalty for the overdue tax return. These include:

  • Number of overdue tax returns
  • Your history of filing overdue tax returns
  • The fact whether the taxpayer has not fulfilled the appeal to file their tax return or not.

Is There Any Penalty in Case of Refunds?

If a refund is due to you on account of your income tax return and you delay in its lodgement, then no penalty will be levied by the ATO for the late lodgement of the return. However, this doesn’t mean that you should delay in lodging returns if they result in return as your returns will also be delayed then which means your funds get blocked for a longer time.

Tax returns for partnership firms are quite different and that is why their lodgement requires special consideration of tax laws. For example, the amounts that the partners draw from the partnership firm can’t be claimed as a deduction by the firm.

At Auditax, we have a dedicated team of tax professionals who can handle your partnership tax returns so that you stay ATO compliant and avoid any litigation. In case of a partnership arrangement, it is important to disclose the share of each partner in the profits, salary paid to the partners, and any dividend paid to the partners. This information is critical when it comes to lodgement of a partnership tax return.

Can I Request for Remission of Penalty?

You have received a penalty notice from the ATO for overdue tax return and feeling worried? Well, you can relax as you can request the ATO for its remission as follows:

  • For amount below $10,000: You can request for remission in full
  • For an amount above $10,000: You can request for remission in part in case the delay in lodging the tax return was on account of extraordinary circumstances such as a natural disaster.

You need not worry about communicating with the ATO. We at Auditax can do the same for you and request the ATO on your behalf for the remission of penalty.

Do I Need a Tax Return Accountant to Lodge My Overdue Tax Returns?

Unlike the usual tax returns which can be lodged online by individuals themselves through My Tax or Etax, filing an overdue tax return requires a tax return accountant. We at Auditax make sure to check your tax account with the ATO to find out the important information about tax returns such as the number of outstanding tax returns that are left to be lodged.

How Can Auditax Help Me?

Our tax return accountants and professionals can help you with the following:

  • Applying for the remission of penalty
  • Lodging overdue tax return for years as old as 1990
  • Lodging the annual tax return
  • Guiding for deductions that can be claimed
  • Representation before the ATO

Auditax has numerous success stories when it comes to remission of penalty in case of overdue tax returns. Though it completely depends on ATO whether to forego the penalty or not we make our best efforts to save that extra cost for you. Our team of experts strives hard and uses their knowledge to get the best results for you.

Feel free to get in touch with us and one of our customer service executives will connect with you to help you with your query.


Auditax Accountants offer a wide array of Accounting services to businesses throughout Australia.

Individual Tax Return

From preparing and assisting you with your tax return and providing tax accountant services we go the extra mile to help you avoid late payment fees and other penalties.

Tax Returns

We provide complete Tax Return services for Individuals, Businesses and SMSFs including filing and providing effective advice to reduce your tax liabilities.

Overdue Tax Returns

We have considerable experience in helping clients with Overdue Tax Returns and minimising their penalties including negotiating with ATO .



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