Most countries require filers to lodge an income tax return once a year. However, there may be times when you may not be able to file your taxes on time due to different reasons, such as having a tough schedule, living away from home, or simply finding the process too difficult.
If you have not lodged a tax return in a few years, or if you have any outstanding dues, it is time you contact us to avoid further consequences.
If you do not lodge, the ATO can impose various sanctions to get you to do so, including a penalty for late filing. Call us today to schedule an appointment with one of our consultants to help you with all of your outstanding returns.
Consequences of Late Tax Lodging
You may not be obliged to file a tax return if you earned less than $18,200 and did not pay any tax. However, it is important to send the ATO a non-lodgement statement exclaiming why you failed to lodge or are not required to lodge. The ATO will assume you need to file without a non-lodgement counsel and may take non-compliance action to ask you to do so.
If you are considering buying a house or other assets, you can find it difficult to get a loan if you do not have your most recent tax return information handy. Another option is to charge a higher interest rate. Human services benefits, including centre link payments, family tax benefits, and childcare rebates, may be affected by the late filing.
Late Tax Lodging Implications on Business
Without a current record of their profit and projected tax payments, business owners and contractors will find it difficult to budget, manage cash flow, and plan for a secure financial future. It is more valuable to ensure that your tax return is filed on time.
What should you do if you have not been able to lodge on time?
Understand Your Situation
First and foremost, accept that you are not alone! It is not too late to obtain a better grasp of your existing situation and get started. We recommend hiring a tax advisor. A registered tax agent may view your outstanding returns (post-2001) and assist you to understand where you stand, and advise the way forward.
Gather Paperwork
Following that, your tax advisor will work with you to create an action plan aimed at bringing you up to date. This step will require you to gather crucial documents, records, and data, including:
- Pay slips
- Summaries of centre link payments
- Information on private health insurance
- Statements from the bank
- Income from dividends and investments
Again, some of this evidence may be accessible through pre-filled reports from past years, which your registered tax agent can provide. Your tax advisor will guide you on deductions depending on your specific situation.
Lodge Your Tax
Even though the deadline has gone, you should still file at the earliest. You can file your tax return online, through your registered tax agent, or on paper. Registered tax agents have specific filing deadlines and can file returns for clients after the deadline has passed. If you will be using a registered agent, make sure you contact them first.
For more information, please contact us.