If you can’t lodge tax documents for your client in time, you need an ATO lodgement deferral. Navigating the ATO tax agent lodgment program is an important aspect of managing tax timelines and ensuring compliance. That said, things are complicated enough at the end of financial year (EOFY) without trying to handle deferrals alone.
In this guide, we’ll walk you through what you need to know about the lodgment deferral program for tax agents.
A lodgment deferral extends the due date for lodging a document, giving you extra time to lodge without getting stuck with a failure to lodge on time (FTL) penalty.
According to the Australian Taxation Office (ATO), you can apply for an ATO extension of time to lodge tax return if there are exceptional or unforeseen circumstances that impact yours or your client’s ability to meet the lodgement deadline.
The request must be consistent with PS LA 2011/15 Lodgment obligations, due dates, and deferrals. The ATO might contact you if you have higher levels of non-compliance or frequently use deferrals, but if your whole practice has been affected by unforeseen events, you can request a supported lodgment program (more on this later).
The ATO states that tax agents can request a lodgment deferral for the following obligations:
Notably, you can’t request a deferral before the ATO has generated an activity statement and made it available online. Furthermore, you don’t have to apply if:
The ATO considers lodgment deferral requests individually. The request may be an agent-assessed deferral or an ATO-assessed referral, depending on the claim.
Tax agents can request lodgment deferrals through the ATO online portal for agents. Just follow these steps to apply for a deferral:
Agents can request up to 40 deferrals at one time.
After you submit an application, you will receive a receipt ID. You can view the request online to monitor its progress. If your request meets the requirements to be agent-assessed, it will be processed within 48 hours. If your request is escalated to the ATO, it may take up to 28 days. The ATO will let you know about the reasons for escalation when you view your submitted requests.
When the request has been assessed, the ATO will notify you through Practice Mail. The deferred due date will show both in Online Services for Agents, and on your practitioner lodgment service (PLS) client report.
The ATO may decline a deferral if:
If your request is denied, you will be able to see the reason. In some cases, your client’s request may be eligible for review.
You can request an informal review of a decision if you are dissatisfied with the outcome, but you must lodge this request within 21 days from the date on the communication in which your request was denied.
To request a review, use the Review of lodgment deferral decision form. This is available from the ATO’s website. When applying for a review, you must include:
After filling out the form, submit it through Practice Mail by following these steps:
Processing can take up to 28 days during peak periods, and the ATO requests that you don’t resend an application during this time.
Sometimes, your whole practice may be affected by unforeseen events. This can include ill health, the loss of a key staff member, or geographical issues like natural disasters.
The supported lodgment program aims to help practices of all sizes in these circumstances. This program supports you by:
You can apply through the ATO website’s Practice Mail section. Just follow these steps:
You must include your contact details, information on the unforeseen circumstances, the steps you have taken to resolve these circumstances, and the estimated time you need to overcome the situation.
Understanding the tax agent lodgment program is important to help your clients and ensure your practice thrives. Although QuickBooks cannot directly assist with deferrals, QuickBooks Online Accountant (QBOA) is your powerful ally throughout tax season to help you keep track of your client ledgers.
Embrace QBOA to streamline your tax-related workflows and handle taxes with ease. Learn more in our resource centre or attend one of our events.
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