Haven't lodged your tax return? It could cost you $364

Millions of Australians are yet to lodge their tax return, but the November 2 deadline is fast approaching. Miss it and you could face penalties of $364 for every 28 days your return is overdue.

The countdown is on for Australians who haven't lodged their tax return.

With the November 2 deadline now just weeks away, taxpayers are being urged to get their affairs in order, particularly given overdue returns can attract penalties of $364 for every 28 days they're late in some cases.

More than eight million returns have already been lodged with the ATO. If yours isn't one of them, here's what you need to know before the deadline arrives.

When is the ATO tax return deadline for 2026?

For people who are lodging their own returns, the due date for getting their taxes sorted and in to the ATO is typically October 31.

That's not the case this year though says Mark Chapman, director of tax communications at H&R Block.

"Under the ATO's rules, when a lodgment deadline falls on a weekend or public holiday, it moves to the next business day.

"That means Australians who prepare and lodge their own 2025-26 tax returns have until Monday, November 2, 2026 to get them in."

What is the penalty for a late tax return?

Aside from the possibility of receiving a refund, the other motivation for Australians to submit their income tax return by November 2 is to avoid the possibility of a late penalty.

For individuals, the penalty is currently $364 for every 28 days (or part thereof) that a return is overdue, up to a maximum five penalty units.

"In practice, the ATO generally takes a fairly reasonable approach to taxpayers who are a little late, particularly where they have a good lodgment history and are expecting a refund," Chapman says.

"In those circumstances, the ATO will often decide not to impose a penalty.

"However, the position is different for taxpayers who repeatedly miss deadlines, have outstanding returns from previous years or ignore ATO reminders."

Chapman also cautions taxpayers against putting off lodging their return because they expect to receive a bill. In this case, interest will be charged on any unpaid tax after the November 21 payment deadline, in addition to any applicable penalties.

Can I still use a tax agent?

Many Australians are comfortable preparing their tax returns themselves, but a sizeable number rely on the expertise of tax agents.

Of the roughly eight million returns already received by the ATO, more than 3.7 million have been lodged by tax agents on behalf of individuals.

The good news is that, for taxpayers who haven't submitted a return yet and would rather leave it to a professional, it isn't too late.

"If you register with a tax agent by 31 October, you may qualify for an extended lodgment deadline, potentially until May 2027," Chapman explains.

"That means you don't necessarily have to rush to get everything done by November 2.

"However, you need to make sure the tax agent has actually added you to their client list by the relevant date. Simply making an appointment or intending to use an agent isn't necessarily enough."

Do I need to lodge a tax return in 2026?

For the vast majority of Australians who earned income during the 2025-26 financial year, submitting a tax return is mandatory.

That also generally applies to people who ran businesses, received government payments above certain thresholds and earned investment income (like dividends). The full list is extensive.

There are situations when someone won't need to lodge a return though.

"The most obvious example is someone whose total income falls below the $18,200 tax-free threshold," says Chapman.

"If you're an Australian resident for tax purposes, your only income was wages of less than $18,200 and no tax was withheld, you generally won't need to lodge a return.

"This could apply to students working part-time, people who worked for only a few weeks during the year, or someone who retired partway through the financial year."

The good news is that you don't have to guess to find out.

The ATO has a tool on its website that can tell people whether they need to lodge a return, as well as a similar tool in the ATO portal in myGov which is quicker and can provide more personalised results.

Can I pay my ATO tax bill with a credit card?

Not everyone will receive a refund after lodging their tax return - some people will have a tax debt.

The exact amount owed and the due date will be laid out on an individual's notice of assessment, but what about payment options?

Taxpayers have few choices. They can pay their ATO tax bill through BPAY, bank transfer, or even in-person at Australia Post with cash, EFTPOS or a cheque.

They can also use a credit card or debit card, either via direct debit or through the ATO's Government EasyPay service.

However, it's worth noting that after June 30, 2027, the ATO will stop accepting credit card payments, following recent changes to card surcharges.

Last-minute tax return mistakes to avoid

With the November deadline approaching fast, Australians who haven't lodged their returns may be tempted to get them out of the way quickly. Chapman urges people to take their time though.

"Spending an extra half-hour checking your figures, reviewing your deductions and ensuring your income has been declared could save you money and prevent problems down the track."

Here are some of the more common mistakes Chapman comes across:

1. Missing eligible deductions

"The biggest mistake people make when they're rushing is failing to check the details properly.

"That can work against them in two ways: they might overlook deductions they're legally entitled to claim, or they might claim expenses that aren't deductible.

"Working-from-home expenses are a classic example. Some people forget to claim them altogether, while others claim expenses without keeping the records needed to support them."

2. Relying on ATO pre-fill data

"Another common problem is relying too heavily on information the ATO has pre-filled into myTax.

"It's a useful starting point, but it's not necessarily complete or correct. Taxpayers are still responsible for making sure they've declared all their income.

"This is particularly important for anyone who's changed jobs, worked for multiple employers, earned income from a side hustle or sold investments during the year."

3. Forgetting to declare capital gains

"Capital gains are another area where people frequently make mistakes.

"Selling shares, cryptocurrency or an investment property can create a tax liability, even if the proceeds have been reinvested.

"People sometimes assume that if they haven't withdrawn the money or received it in cash, there's nothing to declare."

4. Overclaiming work-related expenses

"There's also a tendency for people to overclaim expenses that have a mixture of work and private use.

"If you use your phone or laptop partly for work and partly for personal purposes, you generally need to apportion the expense rather than claim the entire cost."

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