Act Now: ATO’s Lodgement Penalty Amnesty Nears its Close
As the year draws to a close, small businesses are urged to seize the final opportunity provided by the Australian Taxation Office (ATO) Lodgement Penalty Amnesty. This offer helps with late filing penalties and ends on December 31 2023. So, if you’re a small business that hasn’t taken advantage of it yet, now is the time to avoid missing out!
Businesses must meet the following requirements:
- had an annual turnover under $10 million when the original lodgement was due
- have overdue income tax returns, business activity statements (BAS) or fringe benefits tax (FBT) returns that were due between 1 December 2019 and 28 February 2022
- lodge between 1 June and 31 December 2023
This process is streamlined for eligible businesses and failure-to-lodge penalties will be automatically remitted without the need to apply.
It’s important to note that this amnesty does not extend to privately owned groups or individuals controlling over $5 million in net wealth. The ATO has set these limitations to ensure that the benefits of the amnesty are directed toward similar entities.
Directors of companies also stand to benefit from the lodgement penalty amnesty. By bringing their company lodgements up to date, directors can have associated penalties remitted. Moreover, if directors rely on company lodgements to finalise their own tax affairs, any failure-to-lodge penalties incurred during the eligible period (June 1 to December 31, 2023) will also be remitted.
For more information, speak with your Simmons Livingstone advisor on 1800 618 800 or via email at admin@simmonslivingstone.com.au.