Tax penalty unit rate continues to climb
We all know there are tax penalties, and we all want to avoid them. Individuals and business that fail to meet their tax obligations on time can expect a stiffer fine this year. Hillyer Riches tax agents and accountants can help you plan your tax strategy, make sure you file on time and make sure there are no penalties incurred. With the monetary fine increasing by $10 per unit, there is no better time to seek the advice of a certified tax professional.
This month the Attorney-General’s office introduced a bill that will raise the penalty unit from $170 to $180, as well as an inflation proposal that will increase that unit per the CPI (Consumer Price Index) every three years. If this bill is passed by Parliament, the $10 change will come into effect as of 31 July 2015, and the inflation adjustment as of 1 July 2018.
Businesses and individuals may receive these penalties for a variety of reasons, the most common is a late tax lodgement. The number of units of the penalty is based on a particular set of criteria, some of these factors include reasonable foreseeability and recklessness.
The Attorney General’s office explained that the increase is part of a larger programme and there is an increase in the government’s focus on financial crimes. They are not only increasing tax fines, but also increasing financial penalties across the board for all Commonwealth offenses. This crime focused initiative includes a focus on white-collar crime all the way to serious organised crime as well.
The office feels that stronger penalties are important to try to deter unlawful behaviour, especially in the financial sector. These news laws hope to make Australia a hostile environment for organised criminals.
Our office can make sure you lodge your tax on time, save the most money and help you plan for a sound financial future. Give our Caulfield tax agents a call if you have any questions or we can assist you in any way.
Hillyer Riches Management Pty Ltd is a Corporate Authorised Representative (No 466483) of Capstone Financial Planning Pty Ltd. ABN 24 093 733 969. AFSL / ACL No. 223135.This document contains general advice only and is not personal financial or investment advice. Also, changes in legislation may occur frequently. We recommend that our formal advice be obtained before acting on the basis of this information.