Are you not paying or falling behind on your Tax?
Missing a tax deadline can feel like just one of those things but the Australian Taxation Office (ATO) takes non-lodgement and unpaid tax very seriously. The process starts small but can escalate quickly if left unchecked.
When you miss a lodgement date, penalties begin at $330 and increase every 28 days, up to $1,650 per return. If you have both company and personal returns outstanding, those numbers double. As a company director, you also need to keep on top of GST, PAYG withholding, and superannuation obligations. Neglecting these can trigger a Director Penalty Notice that makes you personally liable, even risking liquidation or a ban from being a director.
If your returns remain unlodged, the ATO can issue a default assessment, an estimate of what you owe based on available data. These estimates are rarely in your favour and are often inflated. Unpaid debts attract daily-compounding interest (currently over 11% per year) plus late payment penalties.
The longer you delay, the tougher the ATO gets. They can:
- Redirect wages or bank funds straight to the ATO
- Freeze bank accounts
- Report debts over $100,000 to credit bureaus (damaging your credit rating)
- Start bankruptcy proceedings
- Seize assets, including property and vehicles
- Stop you from leaving the country with a Departure Prohibition Order
For deliberate evasion or asset-hiding, the ATO can raid homes, seize documents, and work with overseas tax authorities to track down and recover assets, even in traditional tax havens.
The good news? Most situations can be fixed if you act early. The ATO offers:
- Payment plans of up to 24 months
- Penalty and interest remissions for genuine reasons (illness, disaster, hardship)
- Flexible options for catching up on overdue lodgements
This is where Ledgersmith can help.
We negotiate directly with the ATO on your behalf, arrange repayment terms you can afford, apply for penalty reductions, and bring all your tax lodgements up to date fast. Acting early means more options, less stress, and better outcomes.
If you’ve missed a deadline, received an ATO notice, or are worried about tax debt please contact us. The sooner you do, the sooner we can arrange payment plans, protect your assets, your credit rating, and your peace of mind.
