The Australian Taxation Office recently changed it’s policy in regard to penalties for late lodgement of Australian Tax Returns.
For all returns up to the year ended 30th June 2000, the previous policy of no tax payable – no penalty will remain, but you must be mindful that the requirement to lodge a return is a legal obligation that must be complied with.
If there is tax to pay then penalties are levied under set scales which may include an interest charge and a culpability component.
A Income Tax Return must be lodged if any Rental Income is received during a twelve month period ending on the 30th June each year.
For the year ended 30th June 2001 and subsequent years a penalty shall be levied even if no tax is payable, which is common for foreign investors and expatriates, and charged at the rate of A$110 per 28 days late, or part thereof.
The maximum penalty will be A$550.
The due date for lodgement of the 2001 return is 31st October and penalties accrue if the return is not lodged by that date.
Alternatively you can register with a tax agent by this date and extend the due date for lodgement to the 30th April in the following year.
Australasian Taxation Services is available to ensure you become registered with us and protect you against any penalties that may otherwise be payable.
