The ATO is currently offering a lodgment penalty amnesty for eligible small businesses, providing relief to those who meet the specified criteria. To take advantage of this opportunity, businesses must act promptly, as the deadline for application is set for 31 December 2023.
Eligibility Criteria:
To qualify for the ATO's lodgment penalty amnesty, businesses must satisfy the following conditions:
Had an annual turnover under $10 million when the original lodgment was due.
Have overdue income tax returns, business activity statements, or FBT returns that were due between 1 December 2019 and 28 February 2022.
Lodge between 1 June and 31 December 2023.
Benefits of the Amnesty:
Once the eligible income tax returns, business activity statements, and FBT returns have been lodged within the required deadline, businesses will have failure to lodge penalties remitted automatically, without the need for a separate application.
Exclusion:
The amnesty does not apply to privately owned groups or individuals controlling over $5 million of net wealth.
Additional Remission for Directors:
Directors who bring their company lodgments up to date can also benefit from penalty remissions. If directors rely on company lodgments to finalise their own tax affairs, any failure to lodge penalties will be remitted. This provision is applicable to eligible lodgments made between 1 June and 31 December 2023.
If you haven't done so already eligible businesses should take advantage of this limited opportunity as soon as possible. Should you have any questions or require assistance in navigating this amnesty, please do not hesitate to contact our office.