Can I pay income tax after the 31st March?

Quick Answer

Yes, you can pay income tax after 31 March, but you will incur penalties and interest. The income tax year ends 30 June, and for most individual taxpayers the due date to lodge and pay is 31 October. However, if you owe tax and do not pay by the deadline, the ATO will charge the General Interest Charge (GIC) on the outstanding amount from the due date, plus Failure to Lodge (FTL) penalties if your return is late.

When Is Income Tax Actually Due?

For individuals in Australia, the income tax return due date is 31 October each year (for those not using a tax agent). However, many taxpayers assume that March 31 is some kind of deadline — this confusion often arises from the EOFY (End of Financial Year) timing of 30 June, or from confusion with other tax obligations like PAYG instalments.

To clarify:

• 30 June — End of the financial year
• 31 October — Due date to lodge and pay income tax for the previous financial year
• 31 March — This is not a standard individual income tax deadline. It may be relevant for some business activity statements or superannuation obligations, but not for personal income tax returns.

What Happens If You Pay After 31 March?

Since 31 March is not the official deadline, paying after 31 March will not in itself trigger a penalty — as long as your return was lodged and the due date (31 October) has not passed. However, if you are paying after the 31 October deadline, here is what applies:

• General Interest Charge (GIC): Compounding daily interest on the outstanding tax amount from the original due date (31 October). As of 2024-25, the GIC rate is approximately 11.38% per annum.
• FTL Penalty: If your return was also lodged late, $312 per 28-day period (up to $1,560).
• Lack of refund: If you were owed a refund, the ATO may retain it to offset other outstanding debts.

The 31 March Confusion: PAYG Instalments

One reason 31 March feels significant is that it is the due date for the third quarterly PAYG (Pay As You Go) instalment notice. If you receive PAYG instalment notices from the ATO, failing to pay by the quarterly due dates (September, December, March, May) will attract GIC on the late payment. However, this is different from your annual income tax return.

What If You Cannot Pay by the Deadline?

If you know you cannot pay your tax debt by 31 October (or any applicable due date), the ATO encourages you to contact them before the deadline. Options include:

• Payment extension — for those who need additional time
• Payment plan — structured instalments to pay off the debt over time
• Financial hardship consideration — the ATO can review your circumstances and potentially reduce or remit penalties

Proactive contact with the ATO before the deadline significantly improves your chances of having penalties remitted and avoids escalation of enforcement action.

Summary

Yes, you can pay income tax after 31 March — but only because 31 March is not actually the tax return deadline (that is 31 October). Paying after the actual deadline triggers the GIC on any outstanding amount and potential FTL penalties. If you are unable to pay by the due date, contact the ATO as soon as possible to arrange a payment plan or discuss hardship options.