WHAT HAPPENS IF I DON'T LODGE MY TAX RETURN?
You may be giving the Government a free loan.
The bank will care if you are looking for a home loan
You can be fined
It is best to lodge on time even if you can't pay the amount you owe. You can usually arrange a payment plan. A late payment is better than a late lodgment.
What happens then?
There are a number of things the ATO can do if you are late.
- Send you a reminder letter
- Fine you
- Issue you a demand for lodgments
- Issue a default assessment warnings - this is where they tell you what they think you owe them and its up to you to prove they are wrong if you disagree
- Send you a bill (called a statement of account)
- Issue you a reminder to pay
- Refer you to a debt collector (not good for your credit)
- Ultimately take legal action to enforce the debt.
What should I do if I am late?
The ATO will usually negotiate
Only make an agreement if you are sure you can stick to it
Don't put it on your credit card
Vince Scully | Founder and Chief Sherpa
With over 25 years in Financial Services from consulting to management, Vince Scully is the go-to guy for wealth management and financial advice. Vince founded the Calliva Group; a fund manager, product issuer, advisor and lender to Government and private clients. Vince is an advisor to the Wealth Management Industry, and prior to his role as CEO at Calliva, a senior member of Macquarie bank’s infrastructure team.