Thousands of eligible small businesses have taken advantage of the ATO’s lodgment penalty amnesty. If you haven’t; you only have until 31 December to join them!
When you lodge your eligible income tax returns, business activity statements and fringe benefit tax returns, failure to lodge penalties will be remitted without the need to apply.
To be eligible for the amnesty you must meet the following criteria:
- Have had an annual turnover under $10 million when the original lodgment was due.
- Have overdue income tax returns, BAS or FBT returns that were due between 1 December 2019 and 28 February 2022.
- Lodge between 1 June and 31 December 2023.
The amnesty doesn’t apply to privately owned groups, or individuals controlling over $5 million of net wealth.
Directors who bring their company lodgments up to date can also have penalties remitted. If they’re reliant on company lodgments to finalise their own tax affairs, any failure to lodge penalties will be remitted. This applies to eligible lodgments made between 1 June and 31 December 2023.
If you end up with a debt you should pay in full. However if you’re experiencing financial difficulties, you may be eligible to set up a payment plan. Payment plans need an up-front payment and should be completed in the shortest possible time.
Remember, our tax professionals can help you get back on track with your tax.
Source: ATO Newsroom