Deadline missed: Australians may be fined $313 for late tax return

Australians are being warned they could face a hefty fine if they fail to make progress with their tax returns.

The deadline for anyone wishing to lodge their own return with the Australian Tax Office is October 31.

Anyone who misses the deadline could be assessed a late filing penalty of $313.

This can increase by an additional $313 for every 28 days the yield remains unpaid, up to a maximum of $1,565.

However, there is a simple workaround to save anyone under pressure a little extra time.

The ATO allows registered tax agents to file returns on behalf of clients until an extended deadline of May 15, 2024.

Any “self-housed” person who is short on time can register with a tax agent and benefit from this extension, but they must register with the agent of their choice before the end of October.

Tax agents filed 70 per cent of tax returns in 2019-20, according to ATO data.

A flood of angry Australians took to social media during tax time this year to express their fury after unexpectedly owing money to the ATO or getting a smaller refund than they thought they were entitled to.

One of the main reasons for this is the abolition this year of the tax compensation for low and middle incomes (LMITO).

The offset gave those earning between $37,000 and $126,000 a tax cut of up to $1,500.

However, an expert has warned people are often receiving lower amounts or owing money to the ATO because they are doing their own returns incorrectly.

However, an expert has warned people are often receiving lower amounts or owing money to the ATO because they are doing their own returns incorrectly.

“Most of the errors we find – people send me their tax returns and I check them – are mostly errors from users who have done their own tax returns,” explained Natalie Lennon, founder and director from Two Sides Accounting.

She added that it is “perfectly acceptable to do your own tax return” as long as you pay attention to the details and understand how the returns work.

With pressure only growing for anyone to file their own return before the October 31 deadline, it might be a good idea to take the risk of paying a fee and registering with an agent.

“Tax practitioners are one of the ATO’s key partners and we value the strong collaborative relationship that exists,” the ATO said in response to a recent audit of tax practitioners.

“We are very proud of our engagement with tax professionals and are pleased that the audit recognizes the strength of our consulting approach and the services and support we provide to tax professionals.”

The deadline for anyone wishing to lodge their own return with the Australian Tax Office is October 31.

Anyone who misses the deadline could be assessed a late filing penalty of $313.

This can increase by an additional $313 for every 28 days the yield remains unpaid, up to a maximum of $1,565.