What happens if I forget to lodge my tax return?
If you forget to lodge your tax return by the due date, the Australian Taxation Office (ATO) will automatically issue a Failure to Lodge (FTL) penalty and charge interest on any outstanding tax owed. The longer you wait, the more expensive it becomes — so acting quickly is essential.
Understanding the Failure to Lodge Penalty
When you do not lodge on time, the ATO applies an FTL penalty based on the delay. For individual taxpayers, the base penalty starts at $1,100 and can escalate significantly. This penalty is applied automatically — you do not need to be audited to receive it. The ATO calculates the penalty based on how many days late your return is, and it accrues daily until lodgement.
The penalty tiers for individuals are:
- 1-28 days late: $1,100
- 29-56 days late: $2,750
- 57-84 days late: $5,500
- 85+ days late: $8,250
Interest Charges (General Interest Charge)
Beyond the FTL penalty, the ATO charges general interest charge (GIC) on any unpaid tax from the original due date. As of mid-2026, GIC rates hover around 11-12% p.a. — significantly higher than most loan rates. Interest compounds daily and is applied to the shortfall from the date your tax was originally due until you pay it in full.
For example, if you owed $5,000 in tax and lodged 60 days late, you could face $1,100 in FTL penalties plus approximately $180-$220 in GIC — a total of $1,300+ in extra costs on top of the original $5,000 tax bill.
What You Should Do If You Have Forgotten
The good news: the ATO offers a late lodgement relief process. If you have a reasonable excuse — such as serious illness, natural disaster, or circumstances beyond your control — you can apply to have FTL penalties remitted (reduced or cancelled). You will need to lodge your return as soon as possible and provide supporting documentation.
Steps to take:
- Lodge your tax return immediately, even if you cannot pay right away.
- Contact the ATO or your tax agent to explain your situation.
- Request a penalty remittal if you have a reasonable excuse.
- Set up a payment plan if you cannot pay the lump sum — the ATO offers affordable instalment options.
How to Avoid FTL Penalties in Future
Prevention is the best cure. Mark the 31 October deadline in your calendar. If you anticipate difficulty, contact the ATO before the due date — they are generally cooperative with taxpayers who proactively communicate. Using a registered tax agent can also buy you extra time, as agents typically have extended lodgement dates under the Client Agent Lodgment Program.
