Failure to Lodge Penalties
A Failure to Lodge (FTL) penalty is an administrative penalty which the Tax Office may impose on a taxpayer for failure to lodge a return, statement, notice or other document on time.
The penalty can apply whether or not the required document is ultimately lodged, even if it results in a refund or nil return.
Generally, though, the ATO will not usually apply a FTL penalty to the late lodgment of income tax returns, FBT returns, annual GST returns or activity statements that result in a refund or nil result.
The base penalty is $110 (1 penalty unit) for each 28 day period or part thereof. This is multiplied by a factor of two for medium taxpayers and a factor of five for large taxpayers.
| No. of Days Overdue | Small Taxpayer | Medium Taxpayer | Large Taxpayer |
| 0 – 28 | $110 | $220 | $550 |
| 29 – 56 | $220 | $440 | $1,100 |
| 57 – 84 | $330 | $660 | $1,650 |
| 85 – 112 | $440 | $880 | $2,200 |
| 113+ | $550 | $1,100 | $2,750 |
1. Small taxpayers are not a medium or large taxpayer.
2. A medium taxpayer generally has a turnover of between $1m and $20m or is considered ‘medium’ for PAYG Withholding purposes.
3. A large taxpayer typically has a turnover in excess of $20m or is considered ‘large’ for PAYG Withholding purposes.
This information is for guidance only and is not intended as specific advice to any reader. Professional advice should be obtained before acting on any information contained herein. The publisher accepts no responsibility for loss occasioned to any person or organisation as a result of action or the refrain of action as a consequence of the contents of this publication.