Safe harbour from 'failure to lodge on time' penalties

What does safe harbour from failing to lodge documents on time penalty mean?

Safe harbour from failing to lodge documents on time (FTL) penalty means if your client engages you as a registered tax agent or BAS agent (registered agent), they may not be liable for an administrative penalty for failing to lodge a document on time under certain circumstances.

However, it is your client's responsibility to prove they gave all relevant tax information to you so you could lodge the return, notice, statement or other document with us by the due date.

If we determine that the safe harbour provision does not apply, your clients can still seek a remission of FTL penalty.

Where safe harbour is granted, we may refer the matter to the Tax Practitioners Board (TPB) to consider whether there has been a breach of the 'Code of Professional Conduct' under the Tax Agent Services Act 2009.

For more information about FTL penalty remission grounds, refer to PS LA 2011/19 Administration of penalties for failing to lodge documents on time.