As of May 9, 2023, as part of the 2023-24 Budget, the government has introduced a lodgment penalty amnesty program aimed at encouraging small businesses to re-engage with the tax system and bring their obligations up-to-date.
This amnesty specifically covers overdue income tax returns, business activity statements, and fringe benefits tax returns that were originally due between December 1, 2019, and February 28, 2022.
Small businesses meeting the eligibility criteria can benefit from the amnesty by lodging overdue forms between June 1, 2023, and December 31, 2023. During this period, any failure-to-lodge penalties related to the late submissions will be automatically remitted, and there is no need for businesses to formally request a remission.
To qualify for the amnesty, a small business must have had an annual turnover of less than $10 million at the time the original lodgment was due. It’s important to note that this amnesty does not extend to privately owned groups or individuals with control over $5 million or more in net wealth.