DEADLINE DAY DAWNS

Hills Accounting in Moonah is the Tax Accountant Hobart trusts to make sure you do not have an overdue tax return. We get it - life gets busy, and sometimes things slip through the cracks.

So, what does it matter if you miss the deadline for lodging your tax return? Well, that is the question, isn't it?.

First Contact from the ATO

The ATO isn’t your enemy, and they’ll reach out gently at first. You might get a nudge via SMS, a letter, or a message in your MyGov inbox. Consider this a friendly reminder rather than a telling-off. They’re basically saying, "Hey, we noticed you forgot something!"

That Pesky FTL Penalty

So you missed the message and kept on missing the deadline. Now comes the Failure to Lodge (FTL) penalty. Here’s the deal: for each month your tax return sits on your to-do list, you’ll cop a fine. For individuals, it starts small but can add up to a bit over a grand if you let it slide for too long. As of now, each penalty unit is sitting at a crisp $313, and you could be looking at up to five of these if you don't act swiftly.

Bigger Fish, Bigger Fines

Running a bigger operation? The stakes are higher. Medium businesses see penalties doubling, and large businesses will cop five times the base rate. It's like forgetting to feed the meter in the parking area; that ticket isn’t going to be cheap.

Interest on the Side

Overdue taxes collect interest, kind of like dust collects on your neglected gym membership card. The ATO calls this the General Interest Charge (GIC), and it ticks up the longer you leave your dues unpaid. Think of it as motivation to clear your tax slate sooner rather than later.

Can You Dodge the Bullet?

While the ATO is firm, they're not heartless. They understand that stuff happens - illness, natural disasters, even just plain old messing up the dates. If you’ve got a good reason, or it’s your first offence, you might be able to talk them down on the penalties. Plus, working with a savvy tax accountant that speaks their language (like yours truly) can help you navigate these tricky waters more smoothly.

So, What's Next?

Best practice? Get your tax return in on time. But if you’re reading this with a sinking feeling because you think you are going to miss the boat, don’t panic. We’re here to help.

Hills Accounting has been steering Hobart’s taxpayers clear of trouble for over 25 years. Drop us a line or give us a call, and we’ll help you sort out the mess with minimum fuss. But remember, the sooner the better!

Remember, dealing with the ATO doesn’t have to be a drama. Keep your paperwork tidy, lodge on time, and all is well. And if you can’t, find someone who can help lift that weight off your shoulders.

At Hills Accounting, THAT'S what we do. We can help you stay clear of those pesky penalties!

For more info on keeping your tax affairs on track, reach out to us at admin@hillsaccounting.com.au before it is too late, or call us for a chat on 03 62737800.