In certain circumstances, individuals or businesses may not be required to lodge a tax return with the Australian Taxation Office (ATO). However, failing to notify the ATO of non-lodgement can lead to unnecessary compliance actions. This blog explains the process of advising the ATO when a tax return is not required.
When is a Tax Return Not Required?
You may not need to lodge a tax return if you:
- Earn below the tax-free threshold (normally below approximately $18,000 per year) and have no tax withheld
- Are on a government pension or benefit that is non-taxable
- Have only earned income from investments below the tax free threshold
- Are a deceased estate with no taxable income for the financial year
- Have permanently left Australia and have no further Australian-sourced income
How to Notify the ATO of Non-Lodgement
If you determine that you do not need to lodge a tax return, you must inform the ATO to avoid compliance follow-ups. The ATO allows you to submit a Non-Lodgement Advice (NLA) through:
- MyGov Account: Log in to the ATO section of your MyGov account and complete the non-lodgement form.
- Registered Tax Agent: Your business accountant or tax accountant Melbourne can submit the notification on your behalf.
- ATO Paper Form: Complete the paper Non-Lodgement Advice form and send it to the ATO by mail.
- Phone: Call the ATO to provide your non-lodgement details over the phone.
Deadline for Non-Lodgement Advice
If you do not use an accountant, the Non-Lodgement Advice should be submitted by October 31st following the end of the financial year to ensure the ATO records are updated. If you do use an accountant, then you will have more time to lodge the advice (best to contact your accountant for the date)
Consequences of Failing to Notify Non-Lodgement
Failing to submit an NLA when required may lead to:
- The ATO assuming a return should be lodged and issuing penalties
- Compliance actions, including requests for overdue returns
- Delays in processing future tax refunds
Best Practices for Non-Lodgement Compliance
- Assess Your Lodgement Requirements Annually – Even if you did not need to lodge a tax return in the past, review your situation each year. If you are not sure, contact a tax accountant Melbourne who will be able to advise.
- Keep Records – Maintain documents that justify your non-lodgement status, such as income statements and pension details.
- Seek Professional Advice – If unsure, consult a business accountant or a tax accountant Melbourne to ensure compliance with ATO regulations.
Conclusion
Advising the ATO of non-lodgement is a crucial step to maintain compliance and avoid unnecessary penalties. If you do not need to lodge a tax return, submitting a Non-Lodgment Advice promptly ensures your tax obligations are met efficiently.
If you need assistance with tax compliance, consider speaking with a business accountant or tax accountant Melbourne to ensure accuracy and compliance with ATO requirements.
