Filing a tax return is compulsory for most earning Australian residents. However, lodging your income tax return doesn't need to be stressful. Take responsible steps to stay on top of due dates and deadlines to make the experience straightforward.
Key Dates You Need To Know
31 October is the last filing deadline and the most important date to mark in your calendar. You need to ensure your return is lodged for the previous year by this date. You can do this through tax agents, online, or on a paper form.
You can file your tax return any time after the financial year, which ends on 30 June. That being said, if you use an accountant or a registered tax agent to lodge your tax return, you may be eligible for tax extensions.
Extension deadlines vary and are dependent on individual circumstances, but they can be as late as May. To take advantage of a deadline extension, you need to sign up with a registered tax accountant before 31 October.
If you have outstanding returns from previous years, it is unlikely you will be eligible for a deadline extension.
There are a few other key dates throughout the financial year for Australian businesses.
- 15 January is the due date for larger companies that exceed an income of $10M. Though, businesses with a history of late filings are recommended to file their return by 31 October.
- 21 January is the first monthly PAYG activity statement deadline. Employers lodge these statements each month through the Single Touch Payroll system. These filings cover tax withholdings and superannuation and are vital for PAYG withholding employers. Every statement is a month in arrears. The statement for 21 May covers 21 April through 20 May.
- 28 February is a deadline for a variety of payments and lodgings, such as Goods and Services Tax and covers the December quarter. These additional filings throughout 2022 fall on 28 April, July, and October. 14 August is for PAYG withholding annual summaries, and 21 December is for the November PAYG statement.
As confusing as tax deadlines can be, a tax agent or accounting software can help keep you on track.
When Does the Financial Year Start & End?
For tax purposes, the financial year runs for 12 months. The financial year begins on 1 July and ends on30 June.
At the end of the financial year, business owners complete their books and start finalising their paperwork and accounting for tax purposes. You have from 1 July to 31 October to file your taxes. When you lodge your return by the tax due date, the ATO can calculate your owed taxes or whether you are due a refund.
What is the Return Deadline With A Tax Agent?
With a tax agent, the return is still due by 31 October. However, if you need an extension to the deadline, your tax agent may be able to help you secure a deferment.
What If I Miss The Deadline?
There are a variety of reasons people miss out on tax day deadlines. That's why tax extensions exist. There is a late lodgement penalty of $222 for every 28 days late your filing is, to a maximum of $1,100.
If you miss the income tax due date, contact the ATO to deal with your filing as soon as possible. If you believe you had valid reasons for your late lodging, collate documentation to support this, whether it's a doctor's certificate or proof you were overseas. If you have supporting evidence, it may minimise the penalties you pay. Then it's simply a case of filing your return as quickly as possible to avoid penalties.
You will not be given an extension on deadlines if you have outstanding returns from previous years, even if you use a tax agent. It pays to ensure all of your tax filings are up to date. If you have concerns about filing previous years due to incomplete or missing information about deductions or income, you can rely on a tax agent to fill in the blanks.
Registered tax agents can draw information from the ATO and guide you on what deductions you can claim against your taxes. An accounting and expenses software can help you keep track of incomings, outgoings, expenses and more. It makes tax filing simple because it collects and stores all of the information you need come tax season.
Tax time can be much simpler with QuickBooks
Tax season shouldn't be something to dread, it's simply your opportunity to complete your financial year and prepare for the new one. You can quickly and easily reconcile your accounts with QuickBooks Online and keep track of your obligations with the QuickBooks Tax Calendar. You can review changes through STP and get ahead for next year.