What happens if I don't lodge my tax return on time?

In Plain English

If you don't lodge your tax return or provide other required information by the due date, you could face penalties. The Taxation Administration Act 1953 says that failing to lodge a return or provide information when required is an offence. You might have to pay a fine, and the amount can increase depending on how late you are. The Commissioner can also defer the time for lodgment of any return to a later date under section 388-55 in Schedule 1 to the Taxation Administration Act 1953.

Detailed Explanation

Failure to lodge a tax return on time can result in penalties under the Taxation Administration Act 1953. Specifically, section 8C of the Taxation Administration Act 1953 states that failing to give a return or any other information when and as required under a taxation law constitutes an offence.

Division 286 in Schedule 1 to the Taxation Administration Act 1953 outlines the administrative penalties for failing to lodge documents such as returns or notices on time or in the approved form.

The penalty is calculated as follows, according to section 286-80 of the Taxation Administration Act 1953:

• Base Penalty: One penalty unit for each 28-day period (or part thereof) that the document is overdue, up to a maximum of five penalty units.
• Increased Penalty: The base penalty amount may be multiplied by:
  • 2 if the entity is a medium withholder, or has assessable income or current GST turnover between $1 million and $20 million.
  • 5 if the entity is a large withholder, or has assessable income or current GST turnover of $20 million or more.
  • 500 under certain conditions relating to significant global entities and prior assessments or statements.

Section 388-55 in Schedule 1 to the Taxation Administration Act 1953 notes that the Commissioner may defer the time for lodgment of any return to a later date.