The ATO is taking a significantly firmer approach to taxpayers with overdue lodgment obligations, with recent reports indicating an increase in enforcement activity, debt recovery measures and prosecution action for ongoing non-compliance.
The ATO’s renewed focus forms part of its broader post-COVID compliance strategy, with an increased emphasis on ensuring taxpayers meet their lodgment and payment obligations on time. Taxpayers who fail to lodge required documents and do not engage with the ATO may face escalating consequences.
What obligations are affected?
The increased enforcement activity may affect taxpayers with outstanding:
- Income tax returns
- Business Activity Statements (BAS)
- Instalment Activity Statements (IAS)
- Fringe Benefits Tax (FBT) returns
- Self-Managed Super Fund (SMSF) annual returns
- Other tax and superannuation lodgment obligations
Potential consequences of non-lodgment
Failing to address outstanding tax obligations can lead to a range of consequences, including:
- Failure-to-lodge penalties
- General interest charges on unpaid amounts
- ATO debt recovery action
- Director Penalty Notices for company directors, where applicable
- Credit reporting implications for eligible business tax debts
- Court prosecution and potential criminal convictions in serious ongoing non-lodgment cases
Early action delivers better outcomes
Our experience has consistently shown that taxpayers who act promptly and engage with both their accountant and the ATO generally achieve far better outcomes than those who delay.
If you believe you may have outstanding tax obligations, now is the time to review your position. Addressing issues early can often minimise penalties, avoid escalation and provide access to payment arrangements where required.
How HFB can help
Our team can assist you with:
- Identifying outstanding lodgments
- Preparing and lodging overdue returns and statements
- Communicating with the ATO on your behalf
- Exploring payment arrangements for outstanding tax debts
- Developing a practical plan to bring your tax affairs up to date
Have you received correspondence from the ATO?
If you have received a warning letter, debt collection notice, prosecution notice, Director Penalty Notice or any other correspondence from the ATO, we encourage you to contact us promptly. Early advice can often help prevent matters from escalating and improve the range of available options.
Need assistance?
Contact the HFB team on 07 3286 1322 or email team@hfbgroup.com.au to discuss your situation.