When Are Tax Returns Due if you have Old Outstanding Returns

Transcript

Hi Folks

So when are your future tax returns due, if you still have some old ones outstanding?

Well the answer is pretty simple, if you as an individual taxpayer, or any of your business or investment entities, have any tax returns still outstanding on the 30th of June, being the last day of the financial and tax year, then your or your entity’s next tax return is due on 31 October and payment is generally due then or very soon after.

So that means you will be hit with somewhat of a double whammy!

Assuming you are trying to do the right thing and finally get that late return lodged say in July or August, you will of course have to pay the tax straight away, including likely late lodgement penalties and certainly interest on the late paid amounts. Then before you know it, your next tax return is due shortly after on 31 October and the tax for that is also due around that same time.

So that is going to be tough to manage. And usually, the reason people are lodging late in the first place is because they have gotten themselves into a bad place, spent all their income and not kept some aside ready for their tax bill, and now they find themselves really under pressure.

Of course the ATO can also request lodgement of a document, including a tax return, earlier than the quoted due dates. And this can occur where this is a history of late or non-lodgement or a history of late or non-payment. It could also apply to future returns, so there could be ongoing consequences to letting one or more return drag out.

So my advice is don’t put your head in the sand, don’t ignore your tax lodgement obligations, don’t think it will just go away because it absolutely won’t.

Don’t let it become a bigger problem then you think it might already be.

Instead get your affairs in order as soon as you can.

I can assure you, you will sleep much better at night, even if you have tax to pay (which can usually be managed).

Stealing a line from the hit series Billions, “Sometimes the worst thing happening isn’t so bad”, so getting that tax bill you had been putting off, often isn’t as bad as you think it might be and it is a chance to start dealing with it, rather than letting it grow, because it will!