Penalties for not lodging your income tax return on time

Penalties for not lodging on time range from $110 to $550 depending on how long the document is over due, and can increase to $2750 depending on the size of the entity.

Just recently the ATO has started to enforce the late lodgment penalties as described above, these penalties have been about for some years, but have not been enacted upon by the Australian Taxation Office.

In the last 4 – 6 weeks I have been receiving notices from the ATO in respect to clients late lodgment of tax returns. The penalties are $110 for every 28 days that they are late, up to a maximum of $550.

The due date for lodgment for the year ending 30th June 2010 was the 15th May 2011 if lodging though a Registered Tax Agent. The 15th of May has been the due date for several years, and is quite likely going to be the due date for future years, but please check with the ATO or your tax agent.

If you are lodging your own tax return via the Taxpack or the ATO’s E-tax, then the 31st October is the last date of lodgement.