Missed the 31 October Deadline? How the ATO’s Late Lodgement Penalties Work
The annual deadline for self-lodging your tax return is 31 October. If you missed this date for the 2024–2025 financial year, you might be at risk of copping a financial penalty from the Australian Taxation Office (ATO).
It’s a common (and costly) mistake to assume that if you’re due a refund, you won’t be fined. Unfortunately, the penalty is for failing to meet your obligation to lodge on time, regardless of your final tax position. The good news is, acting quickly can stop the fine from escalating.
Here is a breakdown of what happens when you lodge your tax return late in Australia.
1. The ‘Failure to Lodge on Time’ (FTL) Penalty
The primary fine you face is the Failure to Lodge on Time (FTL) penalty. This penalty is not a flat fee; it is calculated using a system of ‘penalty units’ that increase every 28 days your return is overdue.
For most individual taxpayers and small businesses, the FTL penalty is calculated as follows (based on the current penalty unit value of $330):
| Days Overdue (After 31 October) | Penalty Units Applied | Total Fine Amount |
| 1 – 28 days | 1 Unit | $330 |
| 29 – 56 days | 2 Units | $660 |
| 57 – 84 days | 3 Units | $990 |
| 85 – 112 days | 4 Units | $1,320 |
| 113+ days | 5 Units (Maximum) | $1,650 |
Why the Fine Applies Even if You Get a Refund
This is the most crucial point: the fine is for non-compliance. The ATO’s system treats the failure to lodge as a breach of your legal obligation. If you’re owed a refund, the ATO will simply subtract the penalty from the money they owe you.
Higher Penalties for Businesses
Penalties are scaled based on the size of the entity that is lodging late. Medium and large entities face much higher fines:
- Medium Entities (turnover between $1 million and $100 million): Penalty is multiplied by 2.
- Large Entities (turnover over $100 million): Penalty is multiplied by 5.
2. General Interest Charge (GIC)
If you have a tax bill (you owe the ATO money), you will be hit with a separate fee on top of the FTL penalty: the General Interest Charge (GIC).
The GIC is an interest charge that accrues daily on your unpaid tax debt, starting from the original payment due date. This rate is set quarterly by the government and is a non-deductible expense (from 1 July 2025), meaning it can cause your tax debt to grow rapidly.
What to Do If You’ve Missed the Deadline
If the 31 October deadline has passed, your best course of action is to act immediately:
- Lodge ASAP: The penalty clock is ticking in 28-day blocks. Lodging your return stops the FTL penalty from increasing further.
- Contact a Tax Agent: If you haven’t yet, engaging a registered tax agent is the most effective strategy. They may be able to secure a late lodgement deferral for you, or at the very least, handle the penalty remission request on your behalf.
- Request Penalty Remission: If you have a legitimate, unavoidable reason for the delay (e.g., serious illness, natural disaster), the ATO has the discretion to reduce or waive the penalty. Your tax agent can draft and submit a professional request for you.
- Lodge a Non-Lodgement Advice: If you were not required to lodge a return (e.g., your income was below the threshold), you must still formally notify the ATO of this fact to avoid being flagged as overdue.