Doing a ‘DIY’ tax return? ATO says get it ready before October 31 deadline

The deadline for self-lodged tax returns is fast approaching, with taxpayers required to turn over their details by October 31.

Australians who handle their own personal income tax returns now have just four weeks to complete their tax returns for the 2022-2023 financial year, or run the risk of incurring a failure to lodge (FTL) penalty.

The Australian Taxation Office (ATO) applies one penalty unit per 28 days a personal tax return remains overdue, up to a maximum of five penalty units.

The value of a single penalty unit is $313, meaning FTL penalties could cost the latest lodgers up to $1,565.

As always, exemptions apply: taxpayers who engage the services of a registered tax agent before October 31 can breathe easy, as they have the ability to lodge returns past the due-by date.

The ATO may also choose not to apply FTL penalties when a taxpayer can prove extenuating circumstances.

“We consider your circumstances when deciding what action to take,” the tax office states.

However, taxpayers can expect less leniency when it comes to actually paying debts that may arise through their tax return.

Regardless of whether a return is lodged before or after October 31, those debts must be repaid by November 21, 2023.

Interest applies to any debts outstanding after that date.

Taxpayers who expect they may have trouble meeting the October 31 deadline should proactively reach out to the ATO before it is too late.

“If you’re finding it hard to pay on time you may be eligible to set up your own payment plan, tailored to your circumstances,” the tax office says.