Small Business – Lodgment Penalty Amnesty Program

The Australian Taxation Office (ATO) has introduced a special Lodgment Penalty Amnesty Program for small businesses. This program, announced as part of the 2023-24 Budget, aims to encourage small businesses to re-engage with the tax system and bring their obligations up-to-date. If you are a business owner, it’s important to understand the details of this amnesty program, who is eligible, and why you should take advantage of it.

What is the Small Business Lodgment Penalty Amnesty Program?

The Small Business Lodgment Penalty Amnesty Program allows small businesses to rectify their outstanding tax returns, business activity statements (BAS), and fringe benefits tax returns without facing penalties. The amnesty covers overdue forms that were originally due between 1 December 2019 and 28 February 2022.

Who is Eligible for the Late Lodgment Penalty Amnesty Program?

To be eligible for the amnesty program, small businesses must meet the following criteria:

  • Annual turnover of less than $10 million at the time the original lodgment was due.
  • Have overdue tax returns or BAS that were due between 1 December 2019 and 28 February 2022.
  • Lodge their overdue forms between 1 June 2023 and 31 December 2023.

It’s important to note that privately owned groups and individuals controlling over $5 million of net wealth are not eligible for this amnesty.

Why Should Small Businesses Take Advantage of the Program?

If you are a small business owner with outstanding tax returns or BAS, here are some reasons why you should consider participating in the amnesty program:

  • Penalty Remission: By taking part in the program, any failure-to-lodge penalties associated with your overdue forms will be automatically remitted. This means you can rectify your tax affairs without incurring additional penalties.
  • Opportunity to Get Organised: The amnesty program provides a one-off opportunity for small businesses to settle their tax affairs and bring them up-to-date. It’s a chance to get organised, ensuring compliance and peace of mind.
  • Avoid Future Penalties: By participating in the program and getting your tax obligations up-to-date, you can avoid paying further penalties in the future. It’s an opportunity to start fresh and stay on top of your tax responsibilities.
  • Compliance and Good Practice: While the amnesty program offers relief for past penalties, it’s essential to remember that compliance with tax obligations is an ongoing responsibility. The program serves as a reminder for small businesses to maintain good tax practices and meet their obligations moving forward.

How Can Accounts All Sorted Help You?

At Accounts All Sorted, we understand the challenges faced by businesses. We can provide the expertise and support you need to navigate the Lodgment Penalty Amnesty Program and ensure your tax obligations are met. 

If you’re a business owner seeking assistance with the amnesty program or any other bookkeeping needs, we’re here to help. Contact us today to speak with our experts and get the support you need.

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