What Is An FLT Penalty? What To Do If You Receive One
02 November 2022
FLT stands for ‘Failure To Lodge’ and is a penalty charged by the Australian Tax Office (ATO) to individuals or businesses that have failed to lodge a tax related report or document on time. These documents include:
- Income Tax Return
- Business Activity Statement (BAS)
- Fringe Benefits Tax (FBT) Return
- Pay As You Go (PAYG) Withholding Annual Report
- Annual GST Report
- Annual Taxable Payments Report
Late lodgements are assessed on a case-by-case basis and penalties may not be applied to isolated cases. However, if you do receive a penalty, they may increase every 28 days if ignored, so it is essential to take immediate action.
How Much Is The Penalty?
The amount of the penalty is dependent on a number of factors; mainly, the amount of time that has elapsed since the document’s due date and the size of the entity being penalised. The FLT penalty may be calculated automatically or, for situations of increasing non-compliance, manually.
The automatic penalty is calculated using penalty units. For infringements incurring on or after 1 July, 2020, one penalty unit equates to $222.00 and is multiplied by the rates below:
| Type Of Entity | Penalty Units |
| Small | 1 |
| Medium (GST Turnover between $1-20 million) | Penalty unit multiplied by 2 |
| Large (GST Turnover of over $20 million) | Penalty unit multiplied by 5 |
| Significant Global | Penalty unit multiplied by 500 |
What To Do If You Receive One?
When it comes to FLT penalties, time is of the essence; so it’s important to take action immediately. Our friendly team at Tax Negotiators are experienced in tax debt and penalty negotiation and can liaise with the ATO directly on your behalf. We can help organise a payment plan that benefits everyone or, in eligible situations, you may be able to request a remission or safe harbour.
For more information, contact Tax Negotiators here today!
References
- Australian Tax Office. ‘Failure To Lodge On Time Penalty’, ato.gov.au, Online, 2022, https://www.ato.gov.au/General/Interest-and-penalties/Penalties/Failure-to-lodge-on-time-penalty/ (Accessed 4 July 2022)
- Australian Tax Office. ‘Penalties’, ato.gov.au, Online, 2022, https://www.ato.gov.au/general/interest-and-penalties/penalties/ (Accessed 4 July 2022)
- Butlers Business Lawyers. ‘5 Things To Know About Failing To Lodge Tax Returns: Tax Law Update’, butlers.net.au, Online, 2017, https://butlers.net.au/5-things-know-failing-lodge-tax-returns/ (Accessed 4 July 2022)
- Miralis, D. ‘Failed To Lodge On Time To The ATO? Discover What Penalties You May Be Liable For’, Nyman Gibson Miralis, Online, [No Date], https://ngm.com.au/failure-to-lodge-on-time-ato/ (Accessed 4 July 2022)