Do you have outstanding tax lodgments and debts with the ATO?

Increased penalty rates

In January 2023, the Commonwealth penalty unit rate rose from $222 to $275. This rose again from 1 July 2023, currently sitting at $313 per unit.

This means that if you fall behind on your tax lodgments you can expect the financial penalties to increase substantially.

Late lodgment penalties may arise on the following returns and reports that include but are not limited to:

• Activity statements
• Income tax returns
• FBT returns
• PAYG withholding annual reports
• Single Touch Payroll Reports
• Annual GST returns and information reports
• Taxable payment annual reports.

A small business could therefore expect to pay base penalties for failure-to-lodge returns ranging anywhere between $313 (1 penalty units) to $1,565 (5 penalty units). The ATO calculate this as one unit for every 28 days that the lodgment is overdue.

Small business lodgment penalty amnesty

The ATO is encouraging small businesses with overdue lodgments to take advantage of a lodgment amnesty. This was a measure announced in the 2023-24 Budget and will run until 31 December 2023.

If you have a tax bill due between December 1, 2019, and February 29, 2022, and it has not been paid yet, the ATO will not issue a fine, as long as the taxes are lodged by the end of this year.

To be eligible for the amnesty, the small business must be an entity with an aggregated turnover of less than $10 million at the time the original lodgment was due.

How we can help

To avoid being penalised, ensure you gather all necessary information well before a lodgment due date. We’re here to help and to make the process as smooth and efficient as possible. The key is to be organized and prepared, so we can complete your lodgments on time.

If you anticipate delays, we can liaise with the ATO and advise them of your situation. We may be able to assist in securing an extension in the lodgment due date.

If you have outstanding tax lodgments and debts with the ATO, or have any questions regarding any of the above, Call 1300 513 332 or complete our online enquiry form here to arrange your free initial consultation. 

Date published 18 Aug 2023