Do I get fined for late tax returns?

05/24/2026 3 Min Read

Quick Answer

Yes, you can be fined for lodging a late tax return in Australia. The ATO applies the Failure to Lodge (FTL) penalty automatically — at a rate of $312 per 28 days (or part thereof) overdue, up to a maximum of $1,560. The ATO can also pursue legal action and impose additional penalties for repeated non-lodgment.

The Short Answer: Yes, Fines Apply

In Australia, there is no “warning” system for late tax returns. The moment your tax return becomes overdue past the due date, the ATO’s automated systems apply the Failure to Lodge (FTL) penalty. This is not a discretionary fine — it is an automatic administrative penalty applied by the ATO’s compliance systems.

How the Late Tax Return Fine Is Calculated

The FTL penalty is structured as follows:

$312 per 28-day period (or part of a 28-day period) the return remains un lodged
Maximum of 5 periods, capping the fine at $1,560

These 28-day periods are calculated from the day after the due date. Each completed or partial 28-day block adds another $312 to the penalty. The calculation is automatic and does not require manual ATO intervention to commence.

Example of FTL Penalty in Action

Consider a taxpayer whose tax return was due on 31 October and who lodges on 15 January of the following year. The calculation would be:

31 Oct to 28 Nov — Period 1 ($312)
29 Nov to 26 Dec — Period 2 ($312)
27 Dec to 23 Jan — Period 3 ($312)
Total FTL penalty: $936

Can the Fine Be Waived?

The ATO has the power to remit the FTL penalty, but only in specific circumstances. To have the fine waived, you must demonstrate a reasonable excuse for failing to lodge on time. Acceptable reasonable excuses include:

Natural disaster (flood, fire, earthquake) directly affecting your ability to lodge
Serious illness or hospitalisation
Death of a close family member
Being overseas and unable to access necessary records
Reliance on a tax agent who failed to lodge on your behalf (limited circumstances)

Simply being busy, forgetting, or being unaware of the deadline is not considered a reasonable excuse by the ATO.

Additional Penalties for Repeated Non-Lodgment

If you have a history of late or non-lodgment, the ATO can escalate penalties significantly. These can include:

Director Penalty Notices (DPNs) — holding company directors personally liable for unpaid PAYG withholding
Administrative penalties for false or misleading statements — up to 75% of the tax shortfall
Criminal penalties — for serious tax evasion, the ATO can refer matters to the Commonwealth Director of Public Prosecutions (CDPP)

Interest Charges on Top of Fines

In addition to FTL penalties, if you owe tax and do not pay by the due date, the ATO applies the General Interest Charge (GIC) — currently approximately 11.38% per annum, compounding daily. This is a genuine cost on outstanding debt and applies from the original due date until the debt is paid in full.

How to Avoid the Fine

Lodge on time — or contact a registered tax agent before 31 October to arrange an extended deadline
If you cannot lodge by the deadline — contact the ATO before the due date to request an extension or discuss a reasonable excuse
If you have a history of late lodgments — seek help from a registered tax agent or accountant to get your affairs in order

Summary

Yes, you absolutely can — and will — be fined for late tax returns in Australia. The FTL penalty of $312 per 28 days (capped at $1,560) is applied automatically. On top of this, any tax owed accrues daily interest via the GIC (currently ~11.38% p.a.). The best way to avoid fines is to lodge on time or contact the ATO before the deadline if you anticipate difficulties.