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Lodgment and payment obligations, general interest charge and penalties

 
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Our Policy Implementation Forum works out the administrative approaches we take for taxpayers in situations where a government policy measure has been announced but is not yet enacted. The matters the forum considers when working out the most appropriate approach include the consequences for taxpayers in terms of lodgment arrangements, penalties, short fall interest charge (SIC) and general interest charge (GIC).

Lodgment deferral

We will apply our Risk Analysis Model to announced new measures on an individual measure basis to work out the appropriate course of action. On many occasions, we may decide not to defer lodgment due dates, and we may need to weigh the overall risks to the lodgment program against individual taxpayers' circumstances. However, we will decide this on a measure-by-measure basis.

Deferment of time to pay/payment arrangements

Generally, our policy, as set out in PS LA 2011/14 General Debt collection powers and principles will apply. In most cases, we will not defer the due date for payment. However, we will consider appropriate arrangements to pay by instalments, depending on the measure or the taxpayer's circumstances.

Failure to lodge (FTL) penalties

We seldom remit FTL penalties based solely on taxpayers awaiting new legislation. We will only consider doing this on a case-by-case basis after taking the taxpayer's circumstances into account.

Further, the question of FTL penalties would only arise in cases where the question of deferral of the lodgment due date had not been considered at an earlier point.

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

More information

For more information, refer to:

Last Modified: Monday, 4 July 2011

 
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