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What to do if you missed the tax deadline

  • November 02 2020
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Earn

What to do if you missed the tax deadline

By Cameron Micallef
November 02 2020

There are few worse feelings than looking at the calendar and realising it’s 1 November and you haven’t lodged your tax. If you find yourself in this predicament, your best option is to speak with an accountant.

What to do if you missed the tax deadline

What to do if you missed the tax deadline

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  • November 02 2020
  • Share

There are few worse feelings than looking at the calendar and realising it’s 1 November and you haven’t lodged your tax. If you find yourself in this predicament, your best option is to speak with an accountant.

What to do if you missed the tax deadline

Chartered Accountants ANZ tax leader Susan Franks has four tips on what to do if you miss the tax deadline. 

1. You can get an extension through your accountant

Australians can get an extension on their tax deadline if they seek professional help, Ms Franks said. 

“While individual tax returns are due on 31 October, if you are lodging through an accountant, you will be entitled to a longer period – subject to your lodgment history,” Ms Franks said.

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“If you have left your tax to the last minute, then speak to your local chartered accountant by 31 October and you might just be eligible for the extension.”

2. Late lodgment beats no lodgment

While a late payment could be punished by the ATO, the longer an individual waits, the worse the penalty could be.

If your tax return isn’t lodged by the due date, you could receive a failure to lodge penalty which, if left for too long, can equate to a maximum of $1,110.

“If you have a late tax return, don’t sit on it – lodge it. By doing this, you will prevent interest and fines accruing. Delaying lodging your tax return can make it more difficult to obtain tax payment plans with the ATO,” Ms Franks said.

3. Payment plans

Individuals worried about their tax obligations are being advised not to avoid lodging just because you are struggling to pay for it. 

“The ATO is usually willing to help out with a tax debt payment plan – provided you lodge your tax return genuinely,” Ms Franks explained to taxpayers.

“Anyone struggling with the financial impact of COVID-19 should discuss this with the ATO or your chartered accountant.”

4. Communication with the ATO

The ATO will contact you directly after the due date if you have failed to lodge your tax. It is important that you respond to this accurately and promptly to avoid stronger action being taken, the tax expert advised.

What to do if you missed the tax deadline
What to do if you missed the tax deadline
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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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