Aussies have just a matter of hours to lodge their tax returns before they face an immediate fine as the deadline by the Australian Taxation Office looms.

The ATO is urging anyone wishing to lodge their own 2022/2023 tax return to move quickly or risk a fine, with the October 31 cut-off point fast approaching.

Failing to do so comes with a $313 fine, increasing by $313 for every 28 days the return is overdue – up to a maximum of $1565.

The deadline only applies to those planning on submitting their own return, while those with a tax agent have until May 15 next year to file.

Up to two million people have yet to “self-lodge” their returns, according to data provided by the ATO earlier this month.

Aussies can claim a raft of expenses, including those relating to working from home and even a handbag if used for work purposes.

Most people who earn more than the tax-free threshold, which sits at $18,200, are required to lodge a tax return, with failure to do so amounting in a fine.

However, to extend the deadline, taxpayers can lodge with an accountant by October 31 and have it extended to May 15, 2024.

For those needing to lodge a tax return, it can be accessed via the ATO website.

One subset of the workforce, those who are self-employed, are holding off on lodging tax returns amid high costs and lower rebates, the Sole Trader Pulse by tax service Hnry has revealed.

The representative data, based on interviews with 500 sole traders, shows almost one in two self-employed workers are yet to submit their tax return despite the deadline being hours away.

Hnry Australia managing director Karan Anand said 50 per cent of those surveyed who have received their assessment were reporting a lower rebate compared with previous years.

“Our research shows sole traders spend an average of six hours on financial admin every week,” he said.

“Add to that the pressure of tax time while forking out a large sum to potentially receive a smaller rebate following the phasing out of the low and middle income tax offset, and it’s no wonder a large proportion are putting off submitting their return.”

Mr Anand said self-employed workers were spending an average of $1000 to prepare their tax return this year, contributing to tax time being a “confusing and stressful period” for independent earners.

Read related topics:Tax Time

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *