More than 1.5 million Australians could receive a fine in the mail if they fail to lodge their tax returns when the deadline rolls around.
The ATO is urging Australians who are yet to lodge their returns, or book in with a registered tax practitioner, before the October 31 deadline.
Taxpayers who fail to lodge on time face a $313 fine which will renew monthly until the tax return is lodged.
Know the news with the 7NEWS app: Download today
ATO Assistant Commissioner Rob Thomson said more than 9.4 million Australians had already lodged, with a further 1.5 million self-preparer taxpayers expected to need to lodge this year.
“The ATO is receiving a spike of lodgments, with an average of almost 60 thousand individuals lodging each day in October as the deadline approaches. In fact, we’ve had over 1 million lodgments so far this month alone,” he said.
“Firstly, a reminder to those who’ve done the right thing and deliberately held off finalising their tax return until pre-filled information is available, now’s the time to log back into the App or myTax, finalise and press lodge.
“For those who haven’t yet started, it’s not scary or complicated. People with simple affairs will find that you should be able to lodge your tax return in the time it takes to cook a frozen pizza.
“We’re all guilty of sometimes leaving things to the last minute, but taking half an hour this weekend to complete your tax return will save you time and money in the long run, as penalties can apply if you lodge late.”
People lodging their own income tax return have just over a week to do so, with a $330 penalty on the cards for those who do not submit the document before the end of the month.
There will also be an extra $313 charge every 28 days, up to a maximum of five times, meaning the fine could ultimately cost you $1565.
For those turning to a tax agent, you “need to be on their books before” the deadline.
“If you haven’t already done it, set aside some time over the next week to compile your evidence and get your return in on time,” CPA Australia’s tax lead Jenny Wong said.
“Or seek expert advice from a registered tax agent who can assist, especially if your finances are complicated.”
Experts say the late rush to lodge a return can open you up to the threat of scammers, who will “target people with last-minute calls to action, or promises of substantial refunds”.
Australians need to be on alert, particularly for SMS messages that purport to be from the ATO.
“Tax scams become more and more sophisticated every year and scammers prey on the circumstances at the time – in this case, the deadline to lodge is approaching,” Wong said.
“Be very wary of anyone offering unsolicited, last-minute help to file your tax returns, especially if the offer or promise of returns sounds too good to be true.
“Scams could come via email, social media, text message or phone calls.”
The ATO will warn you by phone or in writing that you have missed the deadline.
“We recognise that sometimes people don’t meet their lodgment obligations on time, even with the best intentions,” the ATO said.
“Generally, we don’t apply penalties in isolated cases of late lodgment.
“We consider your circumstances when deciding what action to take.”
The ATO will send you a written notice of the reason for the penalty and the amount, should it choose to impose the penalty.