Overdue 2025 Tax Returns

We would like to remind you that delaying lodgement of your 2025 tax return may have a number of significant consequences.

 Late Lodgement Penalties

Now that your 2025 tax return is overdue, the Australian Taxation Office (ATO) may impose Failure to Lodge (FTL) penalties. These penalties can increase the longer a return remains outstanding. The ATO have recently increased their penalty units meaning that the late lodgement penalties can be extremely high in comparison to any tax payable.

 Interest Charges on Tax Debts

If your 2025 tax return results in tax payable, the ATO may also apply interest charges to any unpaid tax liability. The longer a return remains unlodged and unpaid, the greater the potential cost. The interest is a lot harder to get remitted and is no longer tax deductible.

 Loss of Tax Agent Lodgement Concessions

One of the key benefits of using a registered tax agent is access to the ATO's extended lodgement program. However, this concession is generally only available where prior-year obligations are up to date.

 If your 2025 tax return remains outstanding, you may lose access to the extended tax agent due date for your 2026 Income Tax Return. This could mean your 2026 return will be due on 31 October 2026, rather than receiving the usual tax agent lodgement due date of 15 May 2027.

 Possible Removal from our Tax Agent Client List

As registered tax agents, we are required to maintain appropriate client records and ensure ongoing compliance with ATO requirements. Where clients continue to have overdue lodgements for an extended period, we may be required to remove them from our tax agent client listing. This may result in the loss of access to tax agent lodgement concessions and require future returns to be lodged directly with the ATO.

 What You Need To Do

If you have not yet provided the information required to complete your 2025 tax return, we encourage you to do so as soon as possible. If you are unsure what information is still required, please contact our office and we will be happy to assist.

 The sooner your return is lodged, the greater the opportunity to avoid penalties, minimise interest charges and preserve your tax agent lodgement concessions for future years.

 If you have already sent us the required information recently, please disregard this reminder.