Whether a resident or non-resident in Australia, payment of tax is inevitable. Every year every individual that is either employed or in business is expected to submit their returns for transaction within the set taxation timeline.
According to the Australian Taxation Office, the financial, which is the taxation period runs from 1 July to 30th June in the following year. The returns for this period are expected to be lodged or submitted by 31st October.
Most of the employees will get taxed through their employers who provide such information to them during each payday. The information that is availed to the employee during each pay day is summarized at the end of the financial year and is used in ensuring that they include it during the filing of returns.
You may also find that some of the employees will have some of their funds saved through the Health Insurance scheme. In 2018, there were changes in the First Home Super Saver scheme (FHSS). The summaries are provided at the end of the financial year and are also used to get information such as tax withheld and the assessable FHSS amount released to an individual.
In regards to businesses, the lodging of Business Activity Statement is used for the submission of tax to the ATO. The lodging takes place within the same period as indicated earlier. A business’s tax information consists of tax on goods and services which amounts to 30% or 27.5% of taxable income. This rate applies for the organization that is considered as a base rate entity. The base rate organizations are those whose annual turnover aggregate to less than $50 million. This is the category where most of the businesses fall within.
Failure to file tax results in what is termed as un-lodged late tax returns. This happens when one is unable to file the tax returns before the October deadline. Though there are higher charges during the filing of late returns, ATO allows the taxpayer to lodge their returns for omitted filing.
Filing involves an easy process with ATO providing the online tax returns platforms where the taxpayer is able to finish the filing in minutes. The other way of filing returns is that of engaging a registered tax agent who help individuals and businesses to file their returns. Every business must be able to declare their Pay as Your gain summary so as to receive the compliance certificate for the tax year in consideration.
The filing of returns is a highly vetted process. The filing if followed by a vetting process from qualified and registered accountants. These accountant contacts a business to be able to approve the records. Nonetheless, when there is need for tax refund, the accountants are able verify the figures and the refund and ultimately give details.
There is an allowance on the time that one can file un-lodged late tax returns. At some point the filing may not attract any lateness penalties and hence the taxpayer may go scot-free.