ATO Issues Warning as Tax Deadline Approaches

Australians are being reminded that the deadline to lodge their tax return for the last financial year is quickly approaching, with penalties in place for those who miss the cut-off.

Individuals choosing to lodge their own return must do so by 31 October or risk fines from the Australian Taxation Office (ATO).

Since tax time opened on 1 July, more than 4.8 million refunds have already been processed, with $12.7 billion returned to taxpayers. While the ATO stresses there is still time to get organised, it is encouraging people not to leave things to the last minute.

For those who handle their tax affairs themselves, the 31 October deadline is non-negotiable. Anyone who fails to lodge on time faces an initial penalty of $330, which is applied for every 28 days the return is late. These charges can continue to build until they reach a maximum of $1,650.

On the other hand, Australians who choose to lodge through a registered tax agent have until 15 May next year to meet their obligations. To qualify for the extension, individuals must be registered with an agent before the 31 October deadline.

So far this year, around 3.5 million people have lodged their own return, while 2.8 million have used the services of tax agents. Self-lodging online through myTax can be straightforward, particularly as much of the information from employers, banks, and government agencies is automatically pre-filled. However, using a tax agent can be beneficial for those with more complex financial affairs, investments, or deductions.

Meeting the deadline isn’t just about avoiding penalties. Tax returns are also essential for determining eligibility for government benefits, family tax offsets, and income-tested payments. For many Australians, lodging on time also means a quicker refund, providing a useful financial boost as cost-of-living pressures continue.

The ATO has also reminded taxpayers that mistakes or missing information can delay refunds. Taking the time to gather records, such as income statements, receipts for work-related expenses, and details of investments, can help ensure everything is accurate and processed smoothly.

With just weeks to go, Australians are encouraged to check their myGov accounts, decide whether to self-lodge or register with a tax agent, and get their documents in order. Acting now can save unnecessary stress, avoid costly fines, and help ensure a faster turnaround for refunds.