Millions of Aussies warned over $313 fine

Aussies are being warned they could face a fine if they aren’t mindful of two key dates on the Australian Taxation Office’s calendar.

Millions of Aussies are being warned to beware of a pitfall that could leave them with a $313 fine.

Tax time is just around the corner and there are two key dates on the Australian Taxation Office’s calendar that Aussies will need to be mindful of.

The first key date is July 1, which is when the financial year ends. The second is October 31, the date the ATO generally requires tax returns to be filed by.

The ATO is warning taxpayers they need to lodge a tax return. Picture: iStock

However, if you have a tax agent, the deadline is often later.

But if you’re flying solo, it’s important that you get your return in by October 31.

Lodging a return after that date could result in “failure to lodge on time penalty”, for which a taxpayer could be fined one penalty unit.

One penalty unit is currently $313.

The ATO warns it can fine taxpayers for each period of 28 days the tax return is overdue, up to five penalty units.

That means a fine could add up to $1565.

The ATO charges medium entities and large entities even more, multiplying the fine by two and five respectively.

Normally, the ATO will warn taxpayers by phone or in writing. If a penalty is applied, the ATO will explain the reason, outline the amount and give a due date for payment.

The tax office retains a discretion to grant remission for the fine, especially if the taxpayer is impacted by a natural disaster or illness.

Taxpayers are required to submit a tax return, and if you don’t do so, the ATO can come after you in other ways.

It may also provide taxpayers with an overdue tax return a default assessment, which could end up costing even more.

That’s because the ATO wacks on a 75 per cent administrative penalty.

“This means for every $100 you owe, an additional $75 is payable,” the ATO states.

Taxpayers can also face an audit and even be prosecuted.