Income tax, CGT and entities

Failure to lodge on time penalty

The failure to lodge on time penalty is a penalty the ATO can apply when a return, statement or other document is lodged after its due date. It generally increases with the length of the delay, up to a maximum, and its size depends on the size of the entity, which the ATO decides from its turnover or income. The ATO may remit all or part of the penalty where there is a reasonable explanation, and it often looks at the history of on-time lodgment. Lodging promptly stops the penalty growing. A practice reduces the risk by tracking each client's due date under the lodgment program and by contacting the ATO early when a date will be missed.

General information, not tax advice. The rules change, so check the source page above for the current position. Fedix is developed by Tax7 R&D Pty Ltd.