One of the most important tasks that all people, no matter what their income level is, should do is file the tax return on time. Filing the tax return is something that can lead to many benefits, and hence you will get some money back every 4 out of 5 times when you file it regularly.
However, if you have not filed your tax return to the date and are thinking of delaying it for a while, then stay alert because you may have to pay $1110 as the fine for the same!
Yes, you read it right; the ATO or the Australian Taxation Office has made it very clear that people who are failing to file the income tax return on or before the deadline will probably have to pay the fines to the office. This fine can be a minimum of $222 and can go up as per your delay in filing the return.
Tax returns are not a joke!
The ATO is willing to teach a lesson to all those who think that filing tax returns is not that important part of their life and they have many other things to do instead. However, the individual should understand the fact that taxation is the key that holds the economy of their country together, and everyone who pays the taxes on time is supporting the nation in the best way.
Why file the return?
Many of you might not get the point of filing the income tax return to the ATO, and that is also an obvious gesture from your side because you are not that alert or aware of the points related to it. You can understand about it in brief in the points mentioned below:-
- Whenever you earn some money in Australia, you need to show that money to the authorities and declare it as your assessable income.
- The person’s assessable income can include all the incomes that the person might have made through the salaries, wages, profits, or some other ways which are allowed in it.
- If your income increases the free amount of tax-free income, you will have to pay the relevant amount of tax on it. {Exceeding $18200 or more in that case of a resident!}
- Well, if you receive some of the income through a salary from your employer, you should understand that the employer must have deducted some tax from your income.
- That tax is called the Pay As You Go tax.
- Now when you file the return, or even if you ask an agent to file the return, they will assess your income and reduce the allowable deductions from it.
- Once the deductions are out, you will get your taxable income, and hence you could calculate the tax on it.
- Now, if the tax amount is lesser than the tax actually paid to the ATO, you are eligible to take the money back from the ATO, and hence you will receive the money in your account.
The outcome
By now, you might be able to understand the rule of paying the tax return and how it can be beneficial for you. Well, the ATO has given a deadline of 1st November, which is already very much near. So, if you can still not pay the return on time, there is a chance that you will be charged or fined with some big amount from your pocket. If you are not that expert in this field, you can surely ask an expert tax agent to help you, and he or she will be the one filing the return on your behalf!