The ATO may impose “Failure to Lodge” (FTL) penalties if you’re supposed to lodge a return but don’t do it by the due date.  This can apply to a whole range of lodgements such as activity statements, tax returns, PAYG Withholding returns, TPAR and more.

When cashflow is tight, we often find business owners avoid lodging their return so they don’t end up with a bill.  But it’s important to remember that if you owe money to the ATO and lodge after the due date, they will usually apply the interest penalties from the original due date anyway – not the date of lodgement.  So, even if you can’t pay by the due date, we still recommend you lodge on time to at least avoid the FTL penalties.