Australians who have yet to lodge their tax return must do so in the next 25 days or risk penalties exceeding $1500.

The deadline for individuals to lodge their own tax return is Friday, October 31, 2025.

About 15 million tax returns will be lodged for the 2024-2025 financial year – 6.4 million of which had already been submitted by the end of August, according to the Australian Taxation Office (ATO).

But millions are still yet to be lodged and anyone who misses the deadline at the end of the month could cop a failure to lodge (FTL) on time penalty.

The penalty starts at $330, then increases by $330 for every 28-day period (or part thereof) that your return is overdue.

The penalty caps out at $1650 for individuals.

Fortunately, the ATO will consider your circumstances when deciding what action to take for late lodgement and usually won’t apply penalties in isolated cases.

The ATO will also typically warn you by phone or in writing before applying FTL penalties.

If you are liable for a penalty, the ATO will notify you in writing.

The notice will include the reason for the penalty, the amount of the penalty, and the due date for payment.

If you cop a fine but failed to lodge due to extenuating circumstances (such as illness, natural disasters, etc.) you can request a remission of penalties.

The ATO may choose to reduce the penalty in part or in full, depending on the circumstances.

Aussies who fail to lodge their tax return on time may also incur a general interest charge (GIC) on their late lodgement and any unpaid penalties.

The current GIC rate is 10.61 per cent annually or 0.02906849 per cent per day, and is calculated on a daily compounding basis on the amount overdue.

In short, the best way to avoid paying any penalties on your tax return is to make sure you lodge it before October 31.

The only way to potentially get around that deadline is by engaging a tax agent.

Most registered tax agents can lodge returns well past the October 31 deadline, often even into 2026.

But you must appoint your tax agent and ensure you’re on their books before October 31 to avoid penalties.

“If you miss that deadline without lodging a tax return or appointing a tax agent, then you could be up for late lodgement fees,” Chartered Accountants Australia and New Zealand (CA ANZ) tax expert Susan Franks previously told 9news.

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.