How Much Is the Late Tax Return Penalty?
The failure-to-lodge (FTL) penalty is based on how long a return is overdue. The ATO charges one penalty unit for every 28 days, or part of 28 days, after the due date, to a maximum of 5 units. One day late counts as a full 28-day block. A penalty unit is $364 for failures on or after 1 July 2026, which includes a 2025-26 return lodged after the due date. For individuals the base amount applies with no multiplier. The ATO multiplies it by 2 for medium and 5 for large withholders, which concerns businesses, not employees.
| Days after the due date | Penalty units | Maximum penalty |
|---|---|---|
| 1 to 28 days | 1 | $364 |
| 29 to 56 days | 2 | $728 |
| 57 to 84 days | 3 | $1,092 |
| 85 to 112 days | 4 | $1,456 |
| 113+ days | 5 | $1,820 |
For an individual. Source: ATO, failure to lodge on time penalty, and penalty units, read 5 October 2026.
The 31 October Deadline, and What Counts as Late
The due date for the 2025-26 return is 31 October 2026 if you lodge it yourself. That date falls on a Saturday, and when a due date is on a weekend or public holiday the ATO treats the next business day as the due date. Here that is Monday 2 November 2026, and the penalty clock starts the day after. The calculator applies this rule for you. Do not count on the extra day if you can lodge earlier.
A registered tax agent changes the deadline. If you are a new client, or switching agents, contact them before 31 October so you are included in their lodgment program. Most agent clients then have until 15 May 2027, with earlier dates in a few cases: 31 March 2027 where your latest return had a liability of $20,000 or more, and 31 October 2026 if you had a return outstanding at 30 June 2026. See the tax calendar for every date.
Worked Examples
Each example uses the 2025-26 return, due 2 November 2026 after the weekend rule, and the same calculation as the tool above.
| Lodged on | Days overdue | Units | Maximum penalty |
|---|---|---|---|
| 20 November 2026 (18 days late) | 18 | 1 | $364 |
| 14 December 2026 (six weeks late) | 42 | 2 | $728 |
| 15 March 2027 (about four months late) | 133 | 5 | $1,820 |
Maximum amounts if the ATO applies the penalty. Many late returns that end in a refund attract nothing.
Lodging 3 days late or 28 days late costs the same, because both fall inside the first block. Day 29 adds a full extra unit ($364). That is why a few days can matter when you are close to a block boundary.
When Does the ATO Actually Charge It?
The penalty is a maximum, not an automatic bill. The ATO says it generally does not apply penalties in isolated cases of late lodgement, and it looks at your circumstances first. If you miss a due date it will warn you by phone or in writing and issue a notice to lodge before applying a penalty, so you have a chance to lodge or talk to it.
The most useful rule for employees: the ATO generally will not issue a failure-to-lodge penalty notice for a late return that results in a refund or a nil result. The exceptions are where the penalty was applied before you lodged, where the document is a third-party data report, and where you are classified as a large withholder. Most PAYG employees owed a refund can lodge late without a penalty, but they wait longer for the money. If you owe tax, or the ATO has already sent a notice to lodge, treat the penalty as real. Estimate which side you are on with the tax return calculator.
A late penalty is separate from interest. If you owe tax, the general interest charge runs on the unpaid amount until you pay, and the rate resets every quarter. See the tax refund guide for how a refund or bill is worked out.
How to Get a Late Lodgement Penalty Removed
You can ask the ATO to remit (cancel) all or part of the penalty. You are expected to lodge the outstanding return first. Each request is decided on its merits. The ATO gives these examples of what it would likely accept: a registered agent or a person you care for with a severe illness, not receiving information such as an income statement from an employer despite a genuine attempt to get it, a disaster such as a fire or flood, or financial abuse, coercive control or family violence. It would likely decline if you were on holiday, busy with work, had a short-term illness such as a cold, or did not get a reminder.
If a registered tax or BAS agent was meant to lodge for you, ask about safe harbour. You are not liable for the penalty if you gave the agent everything they needed to lodge on time and their failure was not reckless or an intentional disregard of the law. You will need evidence that you supplied the information.
If You Have Not Lodged Yet
- Lodge now. Every day counts towards the next 28-day block. Online with myTax is fastest, because the ATO pre-fills most details. Read the steps in the 2026 tax return guide.
- Check your numbers. Use the tax return calculator to estimate a refund or bill from your income statement and deductions.
- If you owe tax, pay what you can. The penalty and the interest are separate, and paying earlier reduces the interest.
- Ask for remission afterwards if you had a good reason, with evidence.
Not sure whether you must lodge? Earning above the $18,200 tax-free threshold generally means you do, and the tax-free threshold guide explains how it works.
Related Calculators and Guides
- Tax Return 2026: dates, rates and the refund estimator
- Tax Return Calculator: estimate your refund or bill
- Tax Calendar: every ATO deadline for 2026-27
- Tax Refund Guide: why refunds are what they are
- Work From Home Deductions: what to claim before you lodge
Frequently Asked Questions
Late tax return penalty questions and answers
What is the penalty for lodging a tax return late?
The ATO can charge a failure-to-lodge penalty of one penalty unit for every 28 days (or part of 28 days) the return is overdue, up to a maximum of 5 units. A penalty unit is $364 on or after 1 July 2026, so the most an individual can be charged is $1,820.
What is the deadline to lodge the 2025-26 tax return?
If you lodge it yourself, the due date is 31 October 2026. That is a Saturday, and the ATO moves a weekend due date to the next business day, so in practice it is Monday 2 November 2026. If you use a registered tax agent and sign up with them before 31 October, most clients have until 15 May 2027.
Will the ATO fine me if I am owed a refund?
Generally not. The ATO says it will not usually issue a failure-to-lodge penalty notice for a late-lodged tax return that results in a refund or a nil result, unless the penalty was applied before the return was lodged. Late lodgement still delays your refund.
Does the ATO warn you before it charges the penalty?
Yes. The ATO says it generally does not apply penalties in isolated cases of late lodgement, and that if you fail to lodge on time it will warn you by phone or in writing and issue a notice to lodge before it applies a penalty.
How much is a penalty unit?
$364 for failures on or after 1 July 2026, and $330 from 7 November 2024 to 30 June 2026. The ATO publishes the current value on its penalty units page.
Can I get a late lodgement penalty removed?
You can ask the ATO to remit all or part of the penalty, and it considers your circumstances. It expects you to lodge your outstanding returns first. Circumstances it would likely accept include severe illness of you, a carer or your agent, a disaster, family violence, or missing information from an employer. It would likely decline a request because you were on holiday, busy at work or had a short-term illness such as a cold.
Am I protected if my tax agent lodges late?
Possibly. The ATO's safe harbour means you are not liable for the penalty if you gave your registered tax or BAS agent all the information they needed in time and the agent's failure to lodge was not reckless or an intentional disregard of the law. You must be able to show you supplied the information. If safe harbour does not apply you can still ask for remission.
Is there interest on top of the penalty?
If you owe tax, the ATO charges general interest charge on the unpaid amount from the due date for payment until it is paid. The rate is set each quarter, so check the ATO's current rate. The failure-to-lodge penalty and the interest are separate charges.
How do I lodge a late tax return?
Lodge it as soon as you can. Most people lodge online through myTax in myGov, where the ATO pre-fills most details, or ask a registered tax agent. The penalty is counted while the return is overdue, so lodging sooner is always cheaper. Use the tax return calculator to estimate your refund or bill first.
How we worked this out▼
Days overdue = days from the effective due date to your lodgment date. The effective due date is the published date, moved to the next business day if it falls on a weekend or a public holiday that applies to the whole of any state or territory (ATO QC34577). Penalty units = the days overdue divided by 28, rounded up, to a maximum of 5. Penalty = units × the penalty unit value that applied on the due date ($364 from 1 July 2026; $330 from 7 November 2024 to 30 June 2026).
This is the base amount for an individual. The ATO decides each case, usually warns first, generally does not charge it where the return results in a refund or nil, and can remit it. It also applies to other lodgments such as activity statements. General information, not tax advice.
Sources & References
- 1Failure to lodge on time penalty— Australian Taxation Office
- 2Penalty units— Australian Taxation Office
- 3Remission of penalties— Australian Taxation Office
- 4Lodge your tax return online with myTax— Australian Taxation Office
- 5Lodge your tax return with a registered tax agent— Australian Taxation Office
- 6Lodgment and payment dates on weekends or public holidays— Australian Taxation Office
Last verified: 5 October 2026. Our content is based on the latest information from official Australian government sources.
Anita Bell
AuthorFounder & Senior Bookkeeper
Accountancy degree (2015); certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One
Anita Bell earned her accountancy degree in 2015 and has worked as a senior bookkeeper with Prime Bookkeeping for over 5 years. This built her skills in Australian and New Zealand tax legislation and industry regulations. She is certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One, and works with payroll and rostering software including Gusto, Deputy, Tsheets and KeyPay. She has strong experience in hospitality, building and construction, financial services, real estate, ecommerce, and medical and health services.
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