As part of the 2023–24 Budget, the government announced a lodgment penalty amnesty program for small businesses. Thousands of eligible small businesses have taken advantage of the lodgment penalty amnesty. If you haven’t done this yet ATO has given until 31st of December to join to the lodgment penalty program!
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 of under $10 million when the original lodgement 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. No other penalties or general interest charge (GIC) will be remitted as part of this amnesty. If you have an existing debt or accrue a new debt through your late lodgement, GIC continues to apply to those debts until they are paid in full.
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 lodgements made between 1 June and 31 December 2023.
If you end up with a debt, you should pay it 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, a registered tax professional or BAS agent can help you get back on track with your taxes.