In 2025, the tax return deadline is 31 October 2025. Every Australian taxpayer who earned income between 1 July 2024 and 30 June 2025 is supposed to lodge his returns with the ATO (Australian Taxation Office). Although it may appear quite harmless to lodge late, you can stand to face penalties, interest charges, and additional scrutiny from the ATO if you miss the tax return deadline. If you work with a trusted tax agent Castle Hill, such as from Prowess Business Advisers, you can avoid such issues easily, particularly if you suspect delays already. Get a detailed view of what will happen if you miss the 2025 tax return deadline.
Why Tax Penalties Exist?
The ATO is authorized by tax laws to impose administrative penalties, if taxpayers fail to meet their obligations. Such penalties are not aimed at punishing taxpayers but to make sure that all individuals and businesses comply with the tax payment laws and deadlines.
The ATO will, however, consider your personal circumstances while assessing penalties. For instance, if you missed the deadline due to any natural disaster or illness, you may be able to request a remission of penalties. But you can be quite sure that you will attract fines if you end up ignoring the deadline.
What Will Happen If You Fail to Lodge on Time (FTL) Penalty?
The Failure to Lodge on Time (FTL) penalty is among the biggest consequences of missing the tax return deadline. Take a look at how the penalty works for individuals and small businesses in 2025:
- 1–28 days late: $330
- 29–56 days late: $660
- 57–84 days late: $990
- 85–112 days late: $1,320
- 113+ days late: $1,650
The penalty unit system will determine all these fines. One penalty unit equals $330 from 7 November 2024. The more you delay, the more penalty units you accrue. The penalties multiply for medium, large, or significant global entities, the penalties multiply, becoming significantly higher.
Most importantly, penalties apply per late document. In case you have multiple overdue statements or returns, you will find that the amounts can add up quite fast.
Other Penalties You Might Face
Other than the FTL penalties, you might also be exposed to additional charges in all these situations:
False or Misleading Statements
The ATO will apply penalties based on your behavior if your tax return contains errors that result in underpaid tax. You could face a penalty of 25% of the shortfall for failing to take reasonable care, 50% for recklessness, and 75% for intentional disregard. However, you may find protection under safe harbor provisions if you provided accurate information and your tax agent made the mistake.
Failure to make a statement
In case you fail to lodge completely, the ATO can determine your tax liability. It can go on to impose penalties of up to 75% of the tax-related liability.
Failure to withhold PAYG (for businesses)
In case your business fails to withhold or pay PAYG amounts, the penalty will be equal to the unpaid amount. Directors may also be held as personally liable.
General Interest Charges (GIC)
Other than the penalties, the ATO charges interest on unpaid tax debts. This compounds every day, until cleared.
How Company Tax Services Can Help You?
It can be especially risky for businesses to lodge late returns. This is because GST reporting errors, incorrect PAYG withholding, and unpaid company taxes can attract steep penalties. When you choose reliable company tax services, you can rest assured that you will meet all your obligations on time. It can reduce the risks of expensive penalties.
With a professional agent by your side, you can negotiate with the ATO for payment plans or remission if they have already applied fines. He can also manage PAYG and GST reporting deadlines.
Expert agents do not delay. They lodge company tax returns promptly, even when returns for multiple years are overdue.
Above all, they can interpret the ATO tax table to ensure payroll compliance. You can rest assured that your business will stay in compliance.
Final Thoughts
The ATO recognises that mistakes happen. Hire a registered tax return agent from an expert company such as Prowess Business Advisers, provide all the correct information, and expect to stay in compliance or get penalty relief for any inadvertent errors.