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The ATO has reminded tax practitioners that if they have clients with one or more years of overdue returns to lodge, only the current year return affects their on-time performance measurement.

Prior year returns are not included in the calculation.

If a practitioner takes on new clients with overdue prior year returns, their on-time lodgment performance will only be affected if they lodge the current year’s return after the due date or deferred date. Further, they can request a lodgment deferral for the current year return, to give them time to prepare and lodge the overdue returns.

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