Millions of Aussies warned to act quickly with tax deadline looming

A staggering number of Aussies are being warned they could face a hefty fine if they don’t get a move on with their tax return.

Millions of Aussies could be in line for a $313 fine, with the deadline for lodging personal tax returns looming.

About six million individual tax returns are yet to be filed for the most recent financial year, according to data from the Australian Taxation Office.

The deadline for anyone intending to lodge their own return with the ATO is October 31 but an extended deadline of May 15 2024 is available to registered tax agents.

Any “self lodgers” who miss the cut-off could be slapped with a late lodgement penalty of $313.

This can increase by a further $313 every 28 days the return remains outstanding, up to a maximum of a whopping $1,565.

Aussies doing their own tax returns are being warned to hurry, with a deadline looming.

Tax agents lodged 70 per cent of tax returns in 2019-20, according to data from the ATO.

That means as many as two million people planning to do it themselves this year need to get a move on to dodge the $313 fine.

Anyone “self-lodging” who is struggling for time can register with a tax agent and benefit from the extended deadline, but they must register with their agent of choice before the end of October.

“As the 31 October deadline approaches, the Australian Taxation Office (ATO) is reminding people to lodge their returns or engage with a registered tax agent to avoid late lodgement penalties,” the ATO said in a statement.

ATO Assistant Commissioner Rob Thomson urged people with simple tax arrangements to treat their returns like a DIY project they’d been putting off.

“DIY projects can get pretty complicated, but unlike flatpack furniture, doing your own tax return can be simple thanks to the data we pre-fill for you and the in-built help,” Mr Thomson said.

“But if you do need some help, you may like to speak with a tax agent to give you a hand.”

A flood of angry Aussies took to social media during tax time this year to vent their fury after unexpectedly owing the ATO money or getting a lower refund than they thought they were entitled to.

A big reason behind this was the low-and-middle income tax offset (LMITO) being scrapped this year.

The offset gave those earning between $37,000 and $126,000 a tax cut of up $1500.

Anyone struggling with their own return can register with a tax agent and take advantage of an extended deadline.

However, one expert warned people often got lower amounts or owed the ATO money as a result of doing their own returns incorrectly.

“Most of the errors that we are finding – people are sending me their tax returns and I am checking them – most of them are user errors from doing your own tax return,” Natalie Lennon, founder and director of Two Sides Accounting explained.

She added that it was “totally fine to do your own tax return” so long as you pay attention to the details and understand how returns work.

With pressure only hotting up for anyone doing their own return ahead of the October 31 deadline, it might be a good idea to take the hit of paying a fee and register with an agent.

“Tax practitioners are one of the ATO’s key partners and we value the strong collaborative relationship that exists,” the ATO said in response to a recent audit of tax professionals.

“We are very proud of our engagement with tax practitioners and we are pleased the audit recognises the strength of our approach to consultation and the services and support we offer to tax practitioners.”

When is the last day to do a tax return?

The deadline for anyone intending to lodge their own return with the Australian Taxation Office is October 31.

Anyone who misses the cut-off could be slapped with a late lodgement penalty of $313.

This can increase by a further $313 every 28 days the return remains outstanding, up to a maximum of a whopping $1,565.