Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Earn

ATO issues final warning as tax deadline looms

  • October 27 2021
  • Share

Earn

ATO issues final warning as tax deadline looms

By Fergus Halliday
October 27 2021

Time is running out for those who are still putting off taking the time to do their taxes.

ATO issues final warning as tax deadline looms

ATO issues final warning as tax deadline looms

author image
  • October 27 2021
  • Share

Time is running out for those who are still putting off taking the time to do their taxes.

ATO issues final warning as tax deadline looms

If you haven’t lodged your tax return yet, the Australian Taxation Office (ATO) is giving you one last reminder.

ATO assistant commissioner Tim Loh admitted that the last few months have been turbulent for Australians, but said that the refund process isn’t as much of a time-sink as consumers might suspect.

“For people with simple tax affairs, lodging through our myTax service can be done and dusted in under 30 minutes. Most of your income and personal details will already be there; simply confirm it’s correct, add any additional income and claim your eligible deductions,” he said.

Advertisement
Advertisement

Mr Loh revealed that the ATO has already processed $20 billion in tax refunds to more than 7.2 million taxpayers in 2021.

“Four out of five people receive a refund with most refunds issued in less than two weeks. This process can’t be sped up, even if you call us,” he said.

That being said, Mr Loh noted that taxpayers still need to do their due diligence when it comes to the details.

He warned that mistakes like forgetting to include a bank account, leaving out income or making ineligible deductions can delay a refund.

“If you’re delaying lodgment due to an expected bill you can't pay right away, we encourage you to lodge this week. Even if you can’t pay on time, lodging your tax return shows us that you’re doing your best to meet your obligations,” Mr Loh said. 

Speaking to nestegg, H&R Block director of tax communications Mark Chapman explained the consequences of failing to begin the process of lodging your tax return on time. 

“The so-called 'failure to lodge' penalty is calculated at the rate of one penalty unit for each period of 28 days or part thereof that the return is overdue, up to a maximum of five penalty units,” he said.

“The value of a penalty unit is currently $222, so the maximum penalty which can be applied for an individual is $1,110.”

Mr Chapman doesn’t recommend it, but he added that you might still luck out even if you do miss that deadline.

“Where a penalty is applied, the ATO will sometimes remit it where it is fair and reasonable to do so, for example in the event of natural disaster or serious illness,” he said.

Those who don’t want to risk a fine and don’t have the time to meet the ATO’s 31 October deadline may still have options, but they’ll have to act fast.

Mr Loh recommended speaking to the ATO directly or a registered tax agent as soon as possible.

“You may also have a bit longer to get your return in; all you need to do is be registered with your agent before the end of this week,” he said.

ATO issues final warning as tax deadline looms
ATO issues final warning as tax deadline looms
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article

About the author

author image

Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times. 

About the author

author image
Fergus Halliday

Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times. 

more on this topic

more on this topic

More articles

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.