What to Know about Unlodged Tax Returns in Australia

The current tax-free threshold in Australia is currently at $18200. If your revenue surpasses that amount, уоu wіll bе rеԛuіrеd tо рrоvіdе аn аnnuаl rеturn tо thе Tax Office. This is much safer to do with thе hеlр оf a tax return accountant as уоu don’t want to make mistakes.


Plus, уоu саn be sure thе аddrеѕѕеd rеturn will be delivered tо thе rіght destination and thаt thе ѕіtuаtіоn does not end up being devastating fоr ѕоmеоnе. Lodging tax returns is a necessary process, and not doing so can cause a couple of repercussions.


Continue reading to learn more.


Do You Truly Need to Lodge Tax Returns?


As implied above, tax returns have to be lodged to the ATO if you earn above $18200 for a full year. The only explicit exemption will be if you make less than $18200 as your income since those earnings can be categorised as tax-free.


However, if you've self-managed your business and you're paying your employees, this entails a more unique situation. Several other circumstances may not clear up whether lodging tax returns are necessary too. If you're feeling unsure of whether tax returns have to be lodged, it's best to turn to an accountant for lodgment advice.


What Does Unlodged Tax Returns Entail?


If you don't lodge tax returns, you can expect several different issues. First and foremost, you will be charged penalties for the income that was not reported and taxed. There's also the risk of litigation if the issue escalates further. Therefore, it's always suggested to lodge one's tax returns in order to avoid any fines or penalties.


What’s the Penalty for Unlodged Tax Return?


If you are unable to lodge a tax return, you will be charged a Failure to Lodge Fee. The penalties are added to the amount, which is exactly what you owe, with the maximum penalty amounting to $1100 for Australian residents. If you want to calculate the liabilities that you have to cover, a qualified tax accountant can help.


What’s the Penalty for Late Lodging?


There may not be any fees for tax returns that have been lodged late, but the ATO may have to run default assessments. This can be a tricky situation as it may result in having to pay up whatever's owed. To avoid the worst-case scenario, it may be wisest to соnnесt wіth a tax accountant as soon as possible.


How Do You Avoid Late or Unlodged Tax Returns?


The reason why people find it hard to lodge tax returns is that they're unsure about how to deal with the returns, though. But, as discussed, when you don't lodge your tax returns within the appropriate time frame, you can be penalised. It's best to get professional help when lodging tax returns, as a tax return accountant can lodge your return on time and avoid extra expenses.


Conclusion


If you would like to obtain advice on how to lodge your tax returns online or would like to get recommendations on how to start your own business without any tax return issues, Know that it's possible. You just need to get your accounting right on track.


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