Overdue Tax returns | 2023 Gotax

How to Deal with Overdue Tax Returns in Australia

If you have overdue tax returns, you may be wondering what to do and what consequences you may face. We will now explain the steps you need to take to lodge your overdue tax returns and whether there are any penalties and interest payable as a result of being late.

Why you should lodge your overdue tax returns

Lodging your tax returns on time is important for several reasons:

- You can avoid penalties and interest charges from the Australian Taxation Office (ATO).
- You can claim any refunds you are entitled to or pay any tax you owe.
- You can keep your tax affairs up to date and avoid further complications.
- You can access government benefits and services that require your income information.

How to lodge your overdue tax returns

The first step to lodge your overdue tax returns is to gather all the relevant information and documents you need, such as income statements, receipts, invoices, bank statements, etc. You can also check your ATO online account or contact the ATO to find out which years you need to lodge.

The next step is to lodge your overdue tax returns:

- Lodge online with Gotax: This is the quick, safe and secure way to lodge your own tax return online. You can access Gotax by signing up on the Gotax website. We can also advise you on deductions, offsets and other tax matters.Most refunds process in 2 weeks.

What penalties and interest you may face

If you lodge your tax return late, you may be subject to a "failure to lodge on time penalty" (FTL) from the ATO. The penalty is calculated at the rate of one penalty unit for each period of 28 days or part thereof that the return is overdue, up to a maximum of five penalty units. The value of a penalty unit is currently $222, so the maximum penalty is $1,110.

You may also have to pay interest on any unpaid tax from the original due date until you pay it in full. The interest rate is updated quarterly and is currently 7.04% per annum.

The ATO may remit or reduce the penalties and interest in some circumstances, such as if you have a good lodgment history, if you voluntarily disclose your overdue return, or if you have a reasonable excuse for being late.

How we can help

If you have overdue tax returns and need professional assistance, we can help. At GoTax, we offer online tax services for individuals and businesses. We can help you prepare and lodge your overdue tax returns quickly and easily, and maximise your refund or minimise your liability. We can also liaise with the ATO on your behalf and negotiate any penalties and interest charges.

Don't delay any longer - contact us today and get your overdue tax returns sorted!

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