Penalties and interest

Penalties that can apply

Uniform penalty provisions apply to most tax laws. Broadly, this means that if you fail to meet a tax obligation under any tax law you will be liable under the same penalty provision. For example, the failure to lodge penalty will apply if you fail to lodge a tax return or you fail to lodge an activity statement.

The uniform penalty provisions consist of penalties for all of the following:

statements, unarguable positions and schemes
failing to lodge documents on time
failing to withhold amounts as required under the pay as you go (PAYG) withholding system
penalties for failing to meet other tax obligations.

There are separate penalties for breaching some superannuation obligations. For more information, refer to:

Guide to superannuation for employers, then select 'What you must do if you haven't met your obligations'

Running a self-managed super fund, then select 'Understanding compliance and penalties'.

If you are liable to pay a penalty, we will notify you in writing of the penalty amount and the due date for payment of the penalty (which will be at least 14 days after the notice is given). We will also give you a written explanation of why the penalty applies.

In certain circumstances, we may decide no penalty should be payable. This is called remitting the penalty. The penalty amount may be remitted, in full or in part, if we consider it fair and reasonable to do so. If the penalty amount is not remitted in full, we will provide you with written reasons for this.

You may object in writing against either:

a penalty assessment for statements or unarguable positions
a remission decision if the amount of the penalty remaining after the decision is more than two penalty units (currently $340).

Sections within Penalties that can apply

Last Modified: Friday, 21 December 2012