Most taxpayers in Australia dread the day they need to lodge their personal tax returns, common reason is that most Australians find it difficult to comprehend the tax law that Australia has for something that we do as Australians on an everyday basis, that is go to and from work to earn income to pay for a roof over our head, crazy to know that up to 52% of our income will be taxed by the Australian Government and the Australian Tax Office.
The maximum fine for an overdue tax return is $850 and convoluted as it is, the Australian tax law system can impose major fines if you get your tax return submission incorrect the first time. Although you can amend your personal and company tax returns within a two year period if you feel that you have done something wrong this often creates extra work and expense for you and your accountant and could alarm a tax audit.
Let’s look at three methods for avoiding these issues and fines:
- SEEK THE SERVICES OF A REGISTERED TAX AGENT if you have one or more personal tax returns outstanding and you know that you will need to pay the Australian Tax Office money seeking the services of a registered tax agent is imperative. At Australia Wide Tax Solutions we can assist and streamline all your tax needs so you do not need to be overwhelmed with the complexity of Australian Tax Law. We will assist you in providing you the best spreadsheet for all your expenses and we will provide you with a tax a checklist to ensure that you have all your income and expenses provided to us. You may not know what to claim and what not to claim but our job is to understand and convey to you maximum tax deductions for your job description. At Australia Wide Tax Solutions our tax lodgements for all our clients are on time; you are safe with us. Where new clients come to us with overdue tax lodgement we work with the Australian Tax office for a lenient outcome. We have had clients that have not lodged tax returns for over ten years and as we have all the tax programs dating back to 1999 and we lodge all the returns on the same day our clients have never been charged a fine.
- THE TAX OFFICE WILL TAKE INTO CONSIDERATION YOUR PERSONAL SITUATION AND STORY if you have a legitimate personal story which explains any overdue or late tax returns from prior years; for example if your life circumstances have changed such as getting married, divorced or a death in the family the Australian Tax Office will usually be understanding. Even life events such as an accident have high priority with the Australian Tax Office. However excuses such as changing addresses do not pass as a valid reason. It is law, that whichever government institution you are dealing with, you must change your address within 28 days of moving. Using a tax agent will help you get these fines like these remitted, because usually the submission will be clearer and easier to work with for the Australian Tax Office. This is particularly true for individuals planning on lodging a paper statements; paper statements means more work for the Australian Tax Office. Using a registered tax agent to complete your prior year and overdue or late tax returns will ensure the best outcome for all parties.
- GET A TAX CHECKLIST FROM YOUR REGISTERED TAX AGENT which will help you with a clear strategy for avoiding fines for overdue or late tax returns. Some strategies might include;
- having all your paper work ready
- ensuring that you have all documentations for all your years tax return outstanding
- ensure you lodge all of your late tax returns within 24 hours of your tax agent adding you to the portal, this shows the tax office that you are keen to lodge your business as soon as possible (and usually they will not fine you)
- it is so much easier to use a tax agent because from start to finish they will usually assist in getting it right the first time, at Australia Wide Tax Solutions we will streamline the entire process from start to finish to ensure that you are never overwhelmed or nervous.
To find out more about the work we do and the savings you could make, don’t take our work for it, see the reviews from our clients: