Don’t Miss Out On Small Business Lodgement Penalty Amnesty!

Dont Miss Out On Small Business Lodgment Penalty Amnesty

A small business lodgment penalty amnesty program was announced in the 2023–24 Federal budget, helping small businesses lodge their overdue tax obligations by remitting late lodgment penalties.

Small businesses have 18 days to get back on track with overdue forms via the small business lodgment penalty amnesty.

Announced in the 2023–24 Federal budget, small businesses with an aggregate turnover of less than $10 million were given an amnesty which remits failure-to-lodge penalties for outstanding tax statements lodged in the period from 1 June 2023 to 31 December 2023 that were originally due between 1 December 2019 and 29 February 2022. 

Late lodgment penalties will be remitted under the amnesty for small business income tax returns, fringe benefits tax (FBT) returns and business activity statements (BAS).

The ATO has urged small businesses to lodge their overdue tax obligations (in approved form) and take advantage of this amnesty, which is due to expire by the end this month.

The amnesty program does not apply to privately owned groups and individuals controlling over $5 million of net wealth.

Approved forms for small business lodgment penalty amnesty

The requirements for a return, notice, statement, application or other document under a taxation law to be an approved form are set out in TAA 1953 sch 1 s 388-50. For example, the BAS is the approved form for lodging a GST return and notifying PAYG withholding amounts, PAYG instalments and other tax instalments. 

Failure to lodge a BAS on time or in the approved form could result in multiple applications of the administrative penalty, depending on the number of tax obligations that were reportable. Each kind of payment imposes a separate notification obligation for penalty purposes. 

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Any tax debts arising after the overdue forms are lodged will be required to be paid in full or a payment plan must be set up with ATO. General interest charges will continue to apply.

If your business falls under the relevant periods that are eligible to receive amnesty for failure-to-lodge penalties, please feel free to contact our office and we will walk you through the process of application. 

Related Link: Clock is ticking on small business lodgment penalty amnesty | ato.gov.au

This article was published on 13 December 2023.

Related FAQs

Who is eligible for ATO amnesty for individuals?

Individual taxpayers who have undisclosed offshore financial accounts or assets may be eligible for the IRS Offshore Voluntary Disclosure Program (OVDP) or the Streamlined Filing Compliance Procedures. These programs provide an opportunity for taxpayers to come forward and disclose their offshore holdings in exchange for potential penalty reductions or even amnesty from criminal prosecution. However, eligibility requirements and program details may vary, so it is advisable to consult a tax professional or visit the IRS website for specific guidance and eligibility criteria.

What is the tax penalty amnesty?

The tax penalty amnesty is a program that allows individuals or businesses to resolve their tax liabilities by paying a reduced or waived penalty.

What is the penalty for late BAS lodgement?

Late BAS lodgement penalties vary based on the specific circumstances. It is best to consult the official guidelines provided by the tax authority in your jurisdiction or seek professional advice to determine the exact penalty for late BAS lodgement.

Do you get fined for not lodging a tax return Australia?

No, you do not get fined for not lodging a tax return in Australia.

Acro Accounting & Financial Planning (AAFP) offers a one stop solution right from accounting, taxation, financial planning to other business advisory services. As Certified Practicing Accountants (CPA’s) and professional tax advisors, we pride ourselves on being experts with the latest developments relating to business and taxation. We as professional public practice firm, provide high quality taxation and business advice to our clients through a personalised service at competitive rates.

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