A warning to individual taxpayers that the due date for lodgement of their 2022 tax returns of 31 October is fast approaching. Given the current economic and financial situation after COVID, there could also be an unexpected sting for those tardy lodgers. The ATO has the ability to fine late taxpayers $220 for every 28 days the tax return is lodged late up to a maximum of $1,100. Although this has been rarely invoked by the ATO in the past, it is expected to be more commonly used moving forward and could surprise unaware taxpayers.
One of the easiest ways to avoid this is to utilise the services of a tax agent. Tax agents get an extended lodgement deadline of mid-May of the following year (i.e. 15 May 2023 for 2022 returns), so there is extra time to prepare and submit your return. We also recommend utilising the services of a tax agent to ensure your return is accurate and minimises your tax liability. The key, if you want to use a tax agent, is ensuring you are placed on their ATO Tax Agent listing by 31 October so for anyone who hasn’t used a tax agent in the past but would like to do so, we recommend you contact us as soon as possible