Tax time is just around the corner and with it comes an important date to mark in your calendar to avoid a hefty fine.
The end of the financial year, July 1, is fast approaching, meaning it is time to start getting your affairs in order.
If you are lodging your own tax return, you need to do so by October 31 or face a penalty by the Australian Taxation Office.
Newsletters: Breaking news as it happens. Subscribe now
Those using a tax agent get a later deadline.
Anyone who has not lodged their tax return themselves or registered with a tax agent by the October deadline will be slugged with a $313 fine.
The ATO warns this penalty increases every 28 days, up to a maximum of five times, meaning the fine could cost you $1565.
The fee for medium and large entities is higher, with the ATO multiplying the fine by two and five respectively.
So, what if you forget to lodge?
The ATO will warn you by phone or in writing that you have missed the deadline.
“We recognise that sometimes people don’t meet their lodgment obligations on time, even with the best intentions,” it said.
“Generally, we don’t apply penalties in isolated cases of late lodgment.
“We consider your circumstances when deciding what action to take.”
The ATO will send you a written notice of the reason for the penalty and the amount, should it choose to impose the penalty.
If you are expecting a tax bill this year, another date to remember is November 21.
This is when you need to pay your bill by if you lodged your return yourself to avoid interest being applied.
As for the hot spots the tax office may be paying attention to this year, H&R Block Australia director of tax communications Mark Chapman has some ideas.
The ATO turns its eye to areas where taxpayers are prone, either accidentally or deliberately, to making errors, Chapman said.
He expects these areas to include record keeping, work-related expenses, rental property income and deductions, sharing economy income, and capital gains from crypto assets, property and shares.
Chapman encouraged taxpayers to pull supporting documents together sooner rather than later.
“People should make sure their records are up-to-date,” Chapman told 7NEWS.com.au earlier.
“The main thing is to claim everything you’re entitled to, and obviously that depends on your specific job, so it may be worthwhile talking to a tax accountant to find out what you can claim.”