There are now greater penalties in place for breaches of most Australian tax laws. The ATO has increased the value of a penalty unit from $110 to $170, the first such increase since 1997.
A maximum of 5 penalty units for a very late tax return increases $300 to $850 ($170 x 5)
from the previous $550 ($110 x 5).The new rate applies to offences that occurred after
28 December 2012, with breaches occurring before this date incurring the previous
penalty rate of $110. Furthermore, under the new legislation, the penalty unit will be up
for review every three years.
Individuals and businesses who fail to lodge returns on time will have to pay $170 for
each 28 days that the return is overdue, up to a maximum of 5 penalty units.
For businesses, penalties can apply for each late tax return including PAYG withholding
annual reports, FBT returns and activity statements such as BAS, IAS and GST.
Medium sized businesses with a turnover of between $1 million and $20 million face a
penalty of 2 times, so that a 5 penalty unit for an individual or small business, becomes
a 10 penalty unit with a fine of $1,700. Businesses should remember that the Failure to
Lodge (FTL) penalty cannot be claimed as a tax deduction. This can result in significant
financial consequences for multiple breaches.
Susan Flux, Brisbane
Since that time I known Tony and his team at Lee and Lee, they have provided me with outstanding advice and services regarding my personal, family and especially my SMSF borrowing setup for wealth creation and tax reduction strategies that have since led to financial independence.
I now very clear and feel confident on my future financial goals and taxation strategies and know they can be achieved with Tony’s expert and professional help.
Shukri Barbara, Property Tax Specialists Sydney
Tony’s understanding of the business and tax environments, together with his experience and can do attitude enables him to deliver creative solutions outside the square as much as inside, A positive thinker I find Tony inspiring, guiding clients and associates to a prosperity mindset.
Tony has impressed me with his technical knowledge and execution. He works with honesty and integrity and is generous in his dealings.
John Mu, Internet Marketing Strategist Gold Coast
Tony Lee and his team at Lee & Lee is without a doubt Australia’s number one accounting firm.
Tony has the strategies which are helping me legally minimise tax. He has helped me in my personal development and wealth creation to build a multimillion dollar property portfolio.