Missed the tax deadline? Here's what you need to do

October 31 has come and gone and it's safe to say some Australians out there – for any number of reasons – missed the deadline for filing their tax return.

Penalties apply for not filing on time, starting with an immediate $330 fine, which increases by $330 for every full or partial 28-day period until the return is filed.

The penalties are capped at $1650 for individuals.

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So if you've missed filing on time, what's your best course of action?

"If you've missed the tax deadline, don't panic – but don't ignore it either," H & R Block director of tax communications Mark Chapman said.

"The best thing you can do is lodge your return as soon as possible. The longer you wait, the higher the risk of penalties."

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He said the Australian Taxation Office was "generally more understanding" if late filers were proactive in trying to fix things.

This could include deciding to not apply the penalties and fines for late filing, especially if the taxpayer acts quickly and has a reasonable explanation for missing the deadline, such as illness.

"The key is to lodge voluntarily before the ATO chases you," Chapman said.

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"Once they issue a formal notice, penalties can apply automatically. If you're unsure where to start, getting a tax agent involved can often help reduce or even avoid penalties, especially if they explain the situation to the ATO on your behalf."

And don't worry - filing late doesn't mean you lose any refund you might be entitled do.

"However, there are time limits – usually two years for individuals – to amend or lodge late returns if you're due a refund," Chapman said.

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"So it's best not to leave it too long. The only real risk is a delay in getting your money, or possible penalties if you owe tax."

Well and good for those who are a couple of weeks late with this year's return - but there's also advice for those in the community who might not have filed for several years.

"If you've missed a few years, the best approach is to get up to date in one go," Chapman said.

"A tax agent can help you access all your old income information through the ATO's system, work out what you need to lodge, and prepare multiple years at once."

Again, he said, the key thing was to be proactive, especially for younger people or those new to the workforce who may not have realised they had to lodge a return.

"The worst thing you can do is ignore it," Chapman said.

Those who linger can probably expect reminder letters or emails from the ATO, followed by a formal notice and another deadline to lodge by, after which penalties can apply.

"In some cases, the ATO can even issue a 'default assessment', where they estimate your income and tax owing based on data they have," Chapman said.

"These estimates are rarely in your favour, so it's far better to lodge the actual return yourself and ensure it's accurate."

The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.