WORK RELATED SELF EDUCATION EXPENSES
Lodge a non-lodgment Advisory
What is a Non-Lodgment Advice?
If you do not need to file a tax return, then have to submit a form to the ATO called a non-lodgment advisory. This kind of declaration prevents the ATO from reporting you as having an unfilled tax return and notifies them that you won’t be filing a tax return for the current year. This is important because the ATO may levy fines or penalties on unfilled tax returns.
What penalty will I incur if I fail to file a tax return?
The ATO will first impose an Inability to Lodge penalty on you if your tax return isn’t filed by the deadline. For each period of 28 days or portion thereof that the document is past due, this fee is calculated at a rate of one penalty unit, with a cap of five penalty units. A penalty unit is currently worth $222, hence the highest fine that may be imposed on a person is $1,110.
The penalty is typically imposed automatically; however, it is usually not imposed on returns resulting in a refund or a null result. When a penalty is assessed, the ATO can sometimes waive it if it is “fair and reasonable to do so,” such as in cases of severe illness or natural disaster.
Are there fines for filing a tax return beyond the deadline?
The ATO may give you one or more default assessments if penalties have failed to prompt you to file a return, especially if you have several years of back taxes. Based on information held by the ATO, this basically represents a preliminary assessment of your income.
These are only estimates, so they’re usually accurate and they often overestimate your tax liability as they don’t account for deductions. A default assessment is appeal able, yet you will need to be able to provide evidence of your actual tax liability. It is insufficient to merely assert that the ATO’s estimates are inaccurate.
If I don’t file a tax return, would I face legal action?
Despite being uncommon, the ATO is able to take legal proceedings for failure to file tax returns. Now, the maximum penalty that can be imposed upon conviction is $9,000 in fines or up to 12 months in prison.
Should I file a tax return even if I don’t have any?
There is a general consensus that if you file late, the ATO is more inclined to review or audit you. If you utilize H&R Block to file your late tax returns, your tax advisor will be prepared to respond to inquiries from the ATO.
What should I do if my tax return hasn’t been filed yet?
If you owe the ATO money for one or more unfilled tax returns, authorities will find you. Get your financial records current as soon as possible to prevent this. We want to make the process of catching up as pleasant as possible. We will bring a case to the ATO on your behalf in cases where fines may be remitted.
If there are any discrepancies in your income information, we can frequently complete them by acquiring pre-filled data that has already been given to the ATO by outside sources like banks and companies.
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