The dates that matter for FY2025–26 returns
There are actually two deadlines for the FY2025–26 (year ending 30 June 2026) tax return in Australia, depending on how you lodge:
- 31 October 2026 — if you self-lodge via the ATO's myTax
- As late as 15 May 2027 — if you lodge through a TPB Registered Tax Agent and were on their client list by 31 October 2026
If you miss your applicable deadline, the ATO can charge a Failure to Lodge (FTL) penalty even if you ultimately get a refund. The penalty escalates the longer you delay.
This guide explains exactly what happens, how to minimise the damage, and how to use the Registered Tax Agent extension if you're cutting it close.
What the FTL penalty actually costs
The ATO uses a "penalty unit" system. For FY2025–26 the penalty unit is AU$330 (the unit value is reviewed and indexed periodically — check ATO Failure to Lodge on Time for the current value).
The penalty accrues at 1 unit per 28 days the return is late, up to a maximum of 5 units (AU$1,650) for individuals.
So:
| Days late | Penalty units | Approx penalty |
|---|---|---|
| Up to 28 days | 1 unit | $330 |
| 29–56 days | 2 units | $660 |
| 57–84 days | 3 units | $990 |
| 85–112 days | 4 units | $1,320 |
| 113+ days | 5 units (max) | $1,650 |
For most individuals the penalty caps at $1,650 even if the return is years late.
Important: the ATO often doesn't apply the FTL penalty if:
- You're due a refund (not always — discretionary)
- You have a clean lodgement history
- You voluntarily come forward before the ATO contacts you
But "often doesn't" is not "never will" — and recurring late lodgement materially increases your audit-flag profile.
Beyond the penalty: the cascading consequences
The dollar penalty is rarely the biggest cost. The real consequences:
1. Interest on tax owed (General Interest Charge — GIC)
If you owe tax (i.e. your withholding didn't fully cover your liability), interest accrues from the original due date. The GIC rate is reset quarterly and is generally well above commercial rates — currently around 11–12% p.a.
This compounds daily. On a $5,000 underpayment 6 months late, you'd typically pay an extra ~$280 in interest alone.
2. Loss of access to ATO services
The ATO can suspend your access to:
- ATO online portal beyond viewing prior years
- Linking new advisers as your tax agent
- ABN registration / changes (for sole traders / contractors)
- BAS lodgement portal access (for GST-registered businesses)
3. Centrelink and Family Tax Benefit reconciliation
If you receive Family Tax Benefit (FTB), Centrelink uses your lodged tax return to reconcile estimated vs actual income. Failure to lodge by 30 June of the following year means:
- FTB instalments stop
- Any overpayment becomes a debt
- Future FTB applications can be delayed
4. Loan and visa applications
Banks asking for the most recent lodged notice of assessment for serviceability checks. Missing returns mean using older income data, which can affect loan terms. Some visa sponsorship and partner-visa processes also reference recent ATO assessments.
If you've already missed 31 October — what to do
Step 1: Engage a Registered Tax Agent before being contacted by the ATO
Engaging a TPB Registered Tax Agent after 31 October but before the ATO chases you puts you on the agent's lodgement program — and Registered Tax Agents have access to extended deadlines (typically 31 March of the following year, or 15 May for clients in good standing). The ATO usually accepts this as substantively on-time even though the calendar date is past.
This is the most-overlooked rescue path for late-filers.
Step 2: If owing tax, pay an estimate immediately
GIC interest accrues from the original due date until the tax is paid, not until the return is lodged. If you have any sense of what you'll owe, make an estimated payment now to stop the meter.
Step 3: Voluntarily lodge as soon as possible
The ATO's penalty-remission policy is much more lenient for voluntary late lodgement (you come forward) than for ATO-initiated chase. If the ATO writes to you first, your bargaining position weakens significantly.
Step 4: If multiple years behind, lodge oldest first
The ATO requires you to lodge in chronological order. If you're 2–3 years behind:
- Lodge the oldest outstanding year first
- ATO will withhold any refund from later years until older ones are cleared
- A Registered Tax Agent can sometimes negotiate batched processing
Step 5: If genuinely unable to pay, apply for a payment plan
The ATO has standard payment plan provisions for amounts up to certain thresholds — typically up to AU$200,000 individual debt can be self-serviced via myGov. Larger amounts require negotiation.
Need a professional?
Yes — and it's frequently the easiest rescue path for people who:
- Missed 31 October without engaging an agent
- Have one or more prior years outstanding
- Are confused or anxious about ATO consequences
a registered tax agent (see the directory) For multi-year backlogs, your assigned agent may charge incrementally for additional years; ask them upfront.
If you want to assess whether agent-assisted lodgement makes sense for your situation, see the decision guide.
Bottom line
Missing 31 October is fixable but expensive if you ignore it. The single best action is to engage a Registered Tax Agent before the ATO chases you — this often eliminates the FTL penalty entirely and accesses extended deadlines.
If you're due a refund and have a clean history, the practical risk is lower (the ATO rarely penalises in that case) — but interest still accrues if you ultimately owe.
AI analysis on this page is general information only and not tax advice. Specific late-lodgement situations have nuanced ATO discretion that benefits from professional review.
Need Help With Your Tax Return?
If you've missed the deadline or are worried about penalties, don't panic. a registered tax agent (see the directory) Your partner agent will review your situation and handle the ATO lodgement.
*Disclaimer: This is general information only and does not constitute personal tax advice. Consult a registered tax agent for your specific situation. Always verify against the latest ATO guidelines at ato.gov.au.*