Lodgement Penalty Amnesty Program
The past few years have been challenging for many small businesses with the COVID-19 pandemic and natural disasters having a significant impact on their businesses. With the announcement of tax penalty amnesty scheme in the May 2023-2024 federal budget, the Australian Taxation Office is encouraging small businesses which have overdue income tax returns, fringe benefit tax returns or business activity statements to come forward and get their lodgement back on track.
The amnesty applies to tax obligations that were originally due between 1 December 2019 and 28 February 2022 and runs from 1 June 2023 to 31 December 2023.
To qualify for the amnesty, you must fulfill the following criteria:
- An annual turnover of less than $10 million at the time the original lodgement was due
- An overdue Income Tax Returns, Business Activity Statements or Fringe Benefit Tax Returns that were due between 1 December 2019 and 28 February 2022
- Lodge those overdue forms between 1 June and 31 December 2023
The amnesty does not apply to privately owned groups or individuals controlling over $5 million of net wealth.
Eligible small business taxpayers that lodge the overdue forms within the amnesty period will have any associated failure to lodge (FTL) penalties remitted. The remission will happen automatically and taxpayer does not need to separately request a remission.
The amnesty does not apply to any interest charges which may apply to overdue payments or to other administrative penalties such as penalties associate with the Taxpayer Payments Reporting System.
If you need any assistance with the record keeping and lodgement, please reach out to our friendly team on 02 9267 4467 or [email protected]