Certain small business clients will be able to take advantage of a lodgment penalty amnesty up until 31 December 2023.
The amnesty provides that late lodgment penalties will be automatically remitted where tax obligations, including income tax and business activity statements, that were originally due from 1 December 2019 and 28 February 2022, are lodged between 1 June 2023 and 31 December 2023.
To qualify, the small business must have had aggregated annual turnover of less than $10m at the time the original lodgment was due. However, the ATO indicates that the amnesty will not be available to private groups controlling over $5m of net wealth. How net wealth will be calculated for these purposes is not yet clear.
While late lodgment penalties will be remitted, the amnesty doesn’t apply to general interest charge amounts that might have accrued on outstanding tax debts.
More information
Small Business – Lodgment Penalty Amnesty Program
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