Australians have been urgently reminded time is running out with just a little over a week left to lodge their tax returns or face a hefty fine.
Aussies have until October 31 to lodge their 2022/2023 tax return or face ‘swift and firm action’ from the Australian Taxation Office (ATO) and risk being fined one penalty unit, $313, for each day it is late.
The ATO has also reminded business owners of several important dates to file tax returns, annual reports and paying employees superannuation.
The maximum fine an individual or small business can be fined is $1,565, while a business earning between $1-20million will be fined twice as much.
An extension of the deadline up until May 14, 2024, can be achieved through an application that must be lodged through an accountant by October 31.
The Australian Taxation Office (ATO) has urged Aussies to lodge their tax returns by October 31 or face ‘swift and firm action’ (stock image)
ATO assistant commissioner Jillian Kitto said paying tax is not an option and anyone who misses the deadline should expect penalties and interest.
‘It is in your best interest to engage with the ATO before the bill is due if you can’t pay in full and on time,’ Ms Kitto said in a statement.
‘This means engaging with us before it becomes a tax debt where interest will accrue daily – and before we take firmer action.’
Those unable to pay their tax bill because of financial hardship might be eligible to pay it off in instalments and avoid being fined.
‘We are encouraging people to get their tax and super affairs in order and to engage with us prior to the deadline if they find themselves in financial difficulties,’ Ms Kitto said.
‘However, it’s likely that you will be better off financially if you pay in full and on time, rather than arranging a payment plan.’
Most work expenses incurred by Aussies can be claimed on their tax return, with everything from work-from-home expenses to handbags eligible.
Ms Kitto also urged business owners to ensure their employee’s super has been paid alongside submissions of their quarterly reports by October 28.
Individuals and small businesses can be fined $313 for every day a tax return is late, while a business earning between $1-20million will be fined twice as much (stock image)
Aussies have also been reminded what they can and can’t claim as tax write-offs this year, with work from home expenses to handbags all able to be claimed.
Chartered Accountant Allan Mason worked alongside the billionaire Kerry Packer at his Consolidated Press Holdings company.
The director of Encore Accounting and author of ‘tax secrets of the rich’ told Daily Mail Australia his book has ‘truth nuggets’ the ATO does not want taxpayers to know.
‘There’s only two things certain in life, death and taxes. Well, I’ve been doing this for 40 years and I can tell you death is certain but taxes are not,’ Mr Mason said.
‘I would say a good 10 to 20 per cent of taxpayers fail to claim the things they’re entitled to claim because they’re either slack or they just don’t know and people pay more tax because of this.’