ATO Lodgment Penalty Amnesty Program

As part of the 2023–24 Budget, the government announced a lodgment penalty amnesty program for small businesses.

For lodgments eligible for the amnesty, failure to lodge (FTL) penalties will be remitted, without the need for you to apply. You might see an FTL penalty on your account for a period of time, but we will remit it.

To be eligible for the amnesty, you must meet the following criteria:

• had an annual turnover of less than $10 million at the time the original lodgment was due.
• have overdue income tax returns, business activity statements or fringe benefits tax returns that were due between 1 December 2019 and 28 February 2022.
• lodge those overdue forms between 1 June and 31 December 2023.

The amnesty does not apply to privately owned groups, or individuals controlling over $5 million of net wealth.

No other penalties or general interest charge (GIC) will be remitted as part of this amnesty. If you have an existing debt, or accrue a new debt through your late lodgment, GIC may continue to apply to those debts.

If the FTL penalty is still showing on your account 21 days after the issue date of your FTL penalty notice, you can request a remission of this penalty and we will consider your circumstances on a case-by-case basis if you:

• believe you are eligible for remission under the amnesty
• have extenuating circumstances.

If you end up with a debt and you need help, contact us early so we can find the best solution for you. In most cases you’ll be able to set up your own payment plan online.

Source: ATO