If you are familiar with the tax system, you might be aware that there’s a tax-free threshold. And any income below that level is not taxable. But can you just get away with it without lodging a return? While not filing a tax return for taxable income can attract consequences, let’s find if the same applies to non-taxable income earners.
What to do in case of less than taxable income?
Let’s consider you aren’t earning more than $18200 per year, the tax-free threshold. But how would the ATO know? So, if you don’t notify the ATO, you might be considered a defaulter for not filing a return. The solution to this is non-lodgement advice. You should submit this to the ATO, informing about your less income.
The case of not submitting the tax lodgement
Any failure to submit the tax return or tax lodgement attracts a consequence. In this case, it will be a $210 penalty and it could go to as high as five times the amount ($1050). However, you can get a waiver for certain situations like a serious illness or a natural calamity. Again, failing to revert to the penalty might attract higher penalties or even legal action.
Can I be prosecuted?
That is an option. Your past record and response to a notice from the ATO can be used to decide if you can be prosecuted.
Similarly, there are certain consequences for lodging the tax return late. But it’s advised to submit your taxes on time always. And you can get a Toongabbie accountant to help you with the same.