Fined for lodging late? How to ask for the penalty to be removed
If a tax return, BAS or other form is lodged late, the tax office can charge a failure to lodge penalty. You can ask for it to be reduced or removed, and good reasons are taken into account.
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How the penalty is worked out
The penalty is based on penalty units. One penalty unit is $364 from 1 July 2026 ($330 before that). For a small business or individual, the penalty is generally:
- 1 penalty unit for every 28 days (or part) the form is late
- Up to a maximum of 5 penalty units for each form
- Higher amounts apply to medium and large businesses
Example: A BAS lodged 60 days late is 3 periods of 28 days (or part), so the penalty would be 3 penalty units.
Can it be removed?
Yes – you can ask the tax office to remit (cancel or reduce) the penalty. They look at things like:
- Why the form was late – for example illness, natural disaster, a death in the family or other events outside your control
- Your history of lodging on time
- Whether everything is now lodged
- What you have done to stop it happening again
The steps
- Lodge everything that is overdue first. Requests are much stronger when you are up to date.
- Write a clear request with your reasons and any evidence.
- Wait for the decision. If you disagree, there may be review options.
How UV TAX can help
- Lodge all overdue returns and BAS
- Prepare and send your remission request
- Set up reminders so you lodge on time in future
⚠️ General information only – not tax or legal advice. Remission is at the discretion of the tax office and is not guaranteed. Penalty amounts depend on the type and size of the entity. This page is a simple overview as at November 2026 and does not consider your personal circumstances. Laws, rates and thresholds change, and outcomes are decided by the tax office or the courts – UV TAX cannot guarantee any result. Please get advice for your situation before acting.
Got a late lodgement penalty? Call us
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0466 268 405Frequently asked questions
How much is the failure to lodge penalty?
For small businesses and individuals it is generally 1 penalty unit ($364 from 1 July 2026) for every 28 days or part a form is late, up to 5 penalty units per form.
Can I get the penalty removed?
You can ask for remission. The tax office considers your reasons, your history and whether you are now up to date.
Should I lodge first or ask first?
Lodge everything that is overdue first. It makes a remission request much stronger.
Does it apply to BAS?
Yes. It can apply to BAS, tax returns, STP and other forms that are lodged late.
Related
General information current as at November 2026.