The Australian Taxation Office (ATO) imposes fines and interest charges for taxpayers who fail to meet their lodgement and payment deadlines. It's important for taxpayers to be aware of these penalties and take steps to avoid them.
One of the most important things to remember is the lodgement due dates. The ATO will send up to three reminders in the weeks leading up to the due date, with the final reminder sent on the Due Date itself. Failure to lodge on time can result in penalties being imposed. For example, if a taxpayer fails to lodge their IAS and BAS returns on time, the ATO may impose penalties of $210+ for every 28 days past the due date.
However, if there are extenuating circumstances such as a natural disaster or serious illness, taxpayers can request a full or partial remission of the fines by calling the ATO.
In addition to fines, the ATO also imposes interest charges on unpaid tax liabilities. Once a return with an amount payable has been lodged with the ATO, taxpayers are obligated to pay the amount owed. The ATO will apply the current General Interest Charge (GIC) (approximately 9% per year) to any unpaid tax liabilities.
It's important to note that the ATO periodically re-checks and waits for taxpayers to contact them to provide the necessary information and payment. It's the taxpayers responsibility to keep track of and pay any amounts owed to the ATO.
To avoid fines and interest charges, taxpayers should ensure that they are aware of their lodgement and payment deadlines and take steps to meet them. For more information on ATO fines and interest charges, please refer to the ATO website.