Failure to lodge on time (FTL) penalty frequently asked questions
Q4: How is FTL penalty calculated?
The amount of FTL penalty is calculated at the rate of 1 penalty unit (currently valued at $110) for each period of 28 days, or part thereof, which a document is overdue up to a maximum of 5 penalty units.
Size tests also apply. Taxpayers classified as medium entities will have the penalty amount multiplied by a factor of 2 and entities classified as large by a factor of 5.
The size of an entity (for penalty purposes) is related to its assessable income, withholder status or current annual turnover.
We will calculate the period of time the document is overdue from the day the document is due to the day before the document is received.
If we apply penalty where the document is outstanding (i.e. not lodged) we will calculate the amount from the lodgment due date to the day before the day penalty is applied. If we have not applied the maximum penalty allowed by the law to a document that is not lodged, we may increase the penalty amount at a later date.
Consequently, the longer you take to lodge a document after the due date the higher the amount of penalty that may be applied. The maximum amount of FTL penalty may be applied if the document is not lodged within 113 days of the lodgment due date.
Example of FTL penalty calculation
The table below shows the amount of penalty applicable, by entity size, for the period that a document is overdue.
Subscribe
