Are you one of the two million Aussies risking up to $1,650 on your tax return?

The Australian Taxation Office (ATO) has issued a final warning to more than two million Australians who are yet to lodge their income tax returns, with the 31 October deadline fast approaching.

ATO assistant commissioner Rob Thomson stressed the importance of meeting the due date, regardless of how you lodge.

“If you’re lodging yourself, you need to have completed and submitted your return by 31 October. If you plan to use a registered tax agent, you must be on their books by 31 October,” Mr Thomson said.

Missing the deadline can result in a Failure to Lodge (FTL) penalty. For individuals and small businesses, the fine is calculated using penalty units for every 28 days (or part thereof) that a return is late. With each penalty unit currently worth $330, a taxpayer could face an initial fine of $330, increasing to a maximum of $1,650 for one overdue return.

Debunking the delayed lodgement myth

Mr Thomson also dispelled a common misconception that delaying lodgement gives taxpayers extra time to pay.

“There’s a bit of a myth that lodging late buys you more time – that’s not true. If you prepare your own tax return and owe money, your payment is still due on 21 November,” he explained.

If you’re unable to lodge or pay on time, the ATO recommends reaching out to a registered tax professional or visiting its website to explore support options.

So far, over 8.7 million Australians have already submitted their tax returns, with lodgements split almost evenly between self-lodgers and those using registered tax agents.

The three golden rules for tax deductions

With the deadline looming, the ATO is warning taxpayers not to overstate their work-related expenses.

To claim a deduction correctly, these are the ATO’s three golden rules:

1. You must have spent the money yourself and not been reimbursed.

2. The expense must directly relate to earning your income.

3. You must have a record, such as a receipt, to prove the purchase.

It’s not just about getting your deductions right and lodging on time. CPA Australia warns simple mistakes or overlooking changes in your financial situation can turn a straightforward tax return into a costly Halloween horror story. Here’s their top three tips for lodging your tax return:

1. Check your details – Don’t rely on last year’s deductions; review your pre-filled myGov info.

2. Get help if needed – Complex cases like rental or gig income may need a registered tax agent.

3. Beware of scams – Only trust official ATO messages; avoid suspicious email and text links.

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