It’s Not Too Late to Get Back on Track
Missed a tax deadline or simply didn’t have time to get it done? Whatever the reason you fell behind, ITP can help! The good news is, it’s not too late. After 50+ years of helping Australians navigate their tax obligations, we’ve seen every scenario imaginable, and we’ve successfully helped thousands catch up on their overdue returns.
Whether you’re one year behind or several years overdue, ITP can help you ease your way through the process and lodge your tax return with the ATO stress-free. We’ve even helped clients who hadn’t lodged for over a decade get back on track without crippling penalties.
The reality is that life gets in the way sometimes. Medical emergencies, family crises, business pressures, or simply feeling overwhelmed by the paperwork, we understand. What matters now is taking action to resolve your situation and potentially claim refunds you may be entitled to.
Why Lodging Your Past Returns Matters More Than You Think
Staying compliant with the ATO isn’t just about avoiding penalties, it’s about protecting your financial future and accessing entitlements you may be missing. After five decades helping Australians manage their tax affairs, we’ve seen how unresolved tax issues can impact every area of life.
The hidden costs of delayed lodgement include:
- Loss of family tax benefits and government support payments
- Inability to access superannuation co-contributions
- Blocked mortgage applications and credit assessments
- Visa complications for temporary residents
- Accumulated interest on tax debts
- Restricted access to Centrelink benefits
The costs can be significant — and that’s before we’ve even begun to talk about the penalties! Not to worry, though. We regularly help clients recover thousands in missed refunds from previous years, and importantly, get back on track and avoid penalties.
ITP’s expertise makes the difference: With our direct ATO liaison capabilities and specialist knowledge, we can often negotiate penalty reductions or complete remissions, turning a stressful situation into a positive outcome.
Our registered tax agents have the authority and experience to represent you directly with the ATO, often achieving results that individual taxpayers struggle to obtain on their own.
ATO Penalties for Late Lodgement: 2024-25 Update
The ATO may impose fees and penalties for late tax returns through their ‘Failure to Lodge on time penalty’ (FTL). Understanding these penalties helps you make informed decisions about your next steps.
Current penalty structure for 2024-25:
- One penalty unit: $330 per 28-day period overdue (updated from previous rates)
- Maximum for individuals: Five penalty units ($1,650 for small entities)
- Medium entities: Penalty multiplied by two ($660 per period, max $3,300)
- Large entities: Penalty multiplied by five ($1,650 per period, max $8,250)
Medium entities are those that withhold PAYG or have assessable income or current GST turnover between $1 million and $20 million.
Large entities are those with assessable income or current GST turnover of $20 million or more.
Significant global entities face penalties multiplied by 500 — a substantial deterrent for multinational corporations.
When penalties apply:
- You have multiple outstanding tax returns
- Poor lodgement history with the ATO
- Haven’t complied with lodgement requirements
Important protections available:
- Safe harbour provisions: If you provided all relevant information to your tax agent on time, you may be protected from penalties even if the agent failed to lodge due to their error
- Penalty remission: The ATO has discretion to reduce or completely remit penalties for genuine reasons such as natural disasters, serious illness, or other extenuating circumstances
Interest charges for tax debts:
- General Interest Charge (GIC): Currently 11.17% annually on unpaid tax debts
- Shortfall Interest Charge (SIC): Currently 7.17% annually on underpaid amounts
Pro Tax Tip: If you owe no tax or are entitled to receive a tax refund, the ATO typically does not apply a penalty. This is crucial — many people avoid lodging because they fear penalties, not realising they may actually be entitled to refunds.
ITP’s penalty success rate: Our tax accountants have lodged thousands of late or prior years’ tax returns successfully without penalty. In cases where penalties have applied, we’ve successfully reduced or completely negated them through professional ATO negotiation. While we can’t guarantee you won’t receive a penalty, we regularly liaise with the ATO and work with both parties for the best possible outcome.
Do You Need to Lodge? What the ATO Requires in 2025
If you earn over $18,200 annually, you’ll need to lodge a tax return. (You can use the ATO’s ‘Do I need to lodge a tax return?’ tool if you’re not sure.) However, lodgement requirements extend beyond just income thresholds, and many people are surprised by situations that trigger lodgement obligations.
You must lodge a tax return if you:
- Earned more than $18,200 in the financial year
- Had tax withheld from your income (regardless of amount)
- Made capital gains during the year
- Operated a business or had ABN income
- Received foreign income as an Australian tax resident
- Had reportable fringe benefits or reportable super contributions
Even below $18,200, you may need to lodge if:
- You had tax deducted from government payments
- You’re entitled to government benefits or family assistance
- You want to claim deductions that create a refund
- You received dividends with franking credits
Non-lodgement advice: If you earned below $18,200 and had no tax withheld, you may still need to submit ‘non-lodgement advice’ to the ATO. This ensures you don’t have an outstanding record and maintains your eligibility for government benefits and super co-contributions.
The complexity factor: Tax lodgement requirements have become increasingly complex with the gig economy, cryptocurrency trading, and remote work arrangements. When in doubt, professional advice ensures you meet all obligations while maximising your refund potential.
What to Expect: How to Lodge a Late Tax Return with ITP
We can check to see if you have missed any tax returns and your lodgement status. Registered tax agents have access to tax records that most cannot access through direct portals with the ATO. You’ll just need to tell us your Tax File Number (TFN) or your Notice of Assessment or ATO reference number when you call.
Our comprehensive process includes:
Step 1: Lodgement History Review
We’ll check your complete lodgement status and identify all outstanding returns. Many clients are surprised to discover they’re missing returns from years they thought were complete.
Step 2: Income Data Access
From 2001 onwards, our tax accountants can access your employer payment summaries, bank interest income, dividend income, and private health insurance information. This historical data often reveals income sources clients had forgotten about.
Step 3: Deduction Reconstruction
Your tax claims can be made as normal. While you should gather receipts if available, our tax accountants will use ATO data access to reconstruct legitimate deductions where documentation is missing. We’ll advise what claims you can and can’t make based on available evidence.
Step 4: Refund Maximisation
ITP tax accountants work hard to maximise your outstanding years’ tax refunds. Generally, the more work-related expenses you can substantiate, the larger your refund. We know exactly what the ATO accepts and how to present claims for best results.
Step 5: ATO Liaison
If penalties apply or payment arrangements are needed, we handle the ATO communication on your behalf. Our established relationships and negotiation experience often achieve better outcomes than individual taxpayers can secure.
Multiple years lodged efficiently: We can process several years simultaneously, streamlining the entire catch-up process and getting you current faster than lodging individually.
Pro Tax Tip: ITP can often help reduce or completely cancel penalties through professional ATO negotiation, turning potential financial stress into tax refund opportunities.
Our standard tax return fees apply and can be deducted directly from your refund — no upfront payment required.
What Information You’ll Need to Provide
Gathering information for late returns is often easier than expected, thanks to modern ATO data systems and our professional access capabilities.
Essential information:
- Tax File Number (TFN)
- Previous Notices of Assessment (if available)
- Employment details for relevant years
- Bank account details for refund payments
- Private health insurance information
- Current contact details
Helpful but not mandatory:
- Receipts for work-related expenses
- Investment statements and dividend notices
- Rental property income and expense records
- Business income and expense documentation
- Medical and charitable donation receipts
Professional advantage: Registered agents have access to pre-filled data and historical records that significantly simplify the process. We can often reconstruct your tax position even with limited documentation.
Missing paperwork isn’t a barrier. We regularly help clients who’ve lost paperwork due to house moves, relationship breakdowns, or simply time. Our ATO data access and professional experience can usually bridge these gaps effectively.
Digital record keeping: For current and future years, we recommend digital storage solutions for all tax-related documents. This prevents documentation loss and streamlines future lodgements.
We’ve even written a super helpful guide about how to maximise your deductions and potentially increase your tax refund!
Are you a small business? We’ve got you covered too, with our top tax tips for small businesses.
Benefits of Getting Up to Date: More Than Just Compliance
Catching up on overdue tax returns delivers benefits that extend far beyond ATO compliance and not having to worry about the tax office chasing you down for penalties! Our clients consistently discover advantages they hadn’t even thought about.
Immediate financial benefits:
- Access to refunds (ATO typically processes within 12 business days)
- Recovery of franking credits from dividend payments
- Claiming of legitimate deductions that reduce tax payable
- Access to low-income tax offsets and rebates
Restored government entitlements:
- Superannuation co-contribution eligibility
- Family Tax Benefit and Child Care Subsidy calculations
- Medicare levy exemption assessments
- HECS-HELP repayment threshold applications
Improved financial standing:
- Clean tax record supports mortgage applications
- Visa applications require current tax compliance
- Centrelink benefit eligibility restored
- Credit assessments benefit from tax compliance
The stress relief of resolving outstanding tax obligations is worth its weight (off your mind) in gold. Our clients consistently report sleeping better and feeling more confident about their financial future once returns are current. So, are you missing out on sleep because of overdue tax returns? Don’t worry. We’re here to help.
Lodging Options & Timeline for Late Returns
Flexible consultation methods:
- Face-to-face meetings at any ITP office Australia-wide
- Phone consultations for straightforward situations
- Virtual appointments via Zoom for convenient remote service
- Multiple years processed simultaneously for efficient catch-up
Professional advantages over DIY:
- Direct ATO liaison and negotiation capabilities
- Access to historical data and pre-filled information
- Penalty reduction and payment plan arrangements
- Specialist knowledge of complex deduction rules
- Audit protection and ongoing support
Timeline expectations:
- Initial consultation: Same day availability in most cases
- Documentation gathering: 1-3 days depending on complexity
- Lodgement processing: 2-5 business days for preparation
- ATO processing: 12 business days average for refunds
- Multiple years: Can often be completed within 1-2 weeks total
Extended deadlines advantage: Lodging through a registered tax agent may provide deadline extensions for current year returns, giving you breathing room while catching up on prior years.
Payment flexibility: Our fees can be deducted directly from your refund, and we offer payment plans for situations where tax is payable.
Don’t Put it Off Another Year: Get it Sorted Today
Keeping your tax returns up to date means you’ll catch up with other entitlements, such as superannuation co-contributions and family tax benefits that many people miss by staying non-compliant.
The cost of delay compounds: Every year you postpone catching up is another year of potential refunds unclaimed, benefits missed, and stress accumulated. The “perfect time” to address overdue returns never arrives — but the relief of resolving them is immediate.
Why professional help makes sense: Late tax refunds processed by professionals typically take just 12 working days. Having 50+ years of experience in handling the tax affairs of Australian individuals and businesses, ITP tax accountants have specialised skills and knowledge to guide you through the process efficiently.
If you incur a tax debt, our tax accountants will liaise directly with the ATO on your behalf to mitigate fees and penalties or arrange manageable payment plans. We turn potentially stressful situations into manageable solutions.
The best time to get your tax sorted was last year. The second-best time is today.
Your next steps are simple:
- Contact ITP to discuss your specific situation
- Provide basic information for lodgement history review
- Schedule a consultation that suits your preference
- Let our professionals handle the complexity while you focus on moving forwardÂ
Don’t let another tax season pass with unresolved returns. The longer you wait, the more complex the situation becomes, and the more opportunities you miss.
Ready to get back on track? Find an office today and chat with one of our friendly, expert tax specialists. Peace of mind is just a phone call (or email…or physical appointment) away.