When it doesn’t apply
When will an FTL penalty not be applied?
Generally, we will not apply FTL penalties unless we have warned you. This warning may be made verbally or in writing, and may be issued to you in relation to a current document that is overdue or a recent document that you lodged after its due date.
In most circumstances, a penalty will not be applied to late-lodged tax returns, fringe benefits tax returns, annual goods and services tax (GST) returns, or activity statements, which are considered to be low risk documents, where the lodgment results in a:
- nil result; that is, neither a debt nor a refund.
The refund and nil result exclusion from FTL penalty does not apply for the taxable payments annual report as this is a third-party data report and is not considered to be a low-risk document.
However, where an FTL penalty has already been applied because the document was not lodged, the fact that subsequent lodgment of the document may result in a refund or nil tax payable may not be sufficient reason for the penalty to be remitted.
We recognise that events will arise that mean people will not always meet their lodgment obligations on time, even with the best intentions. Consequently, penalties will not generally be applied in isolated cases of late lodgment unless we have already contacted you because the document was not lodged.