How FTL penalty is calculated

how is professional tax calculated

FTL penalty is calculated at the rate of one penalty unit for each period of 28 days or part thereof that the document is overdue, up to a maximum of five penalty units. Size tests also apply, so that the penalty for larger entities is multiplied by either two or five.

The value of one penalty unit increased on 31 July 2015. For failure to lodge on time penalty the increased rate will only apply where the first day of the relevant 28-day period or part thereof occurs on or after 31 July 2015.

The size of an entity is related to its assessable income, withholder status, or its current GST turnover.

We will calculate the period of time the document is overdue from the day the document is due to be lodged to the day before the document is received.

If the document is not received (that is, not lodged), we will

calculate the penalty from the lodgment due date to the day before the day penalty is applied. If we have not applied the maximum penalty allowed by law to a document that is not lodged, we may increase the penalty amount at a later date.

The longer your client takes to lodge a document after its due date, the higher the amount of penalty that may be applied. The maximum amount of FTL penalty for any particular sized entity will be reached if the document is lodged more than 112 days after its lodgment due date.

Find out more

FTL penalty is calculated at the rate of one penalty unit for each period of 28 days or part thereof that the document is overdue, up to a maximum of five penalty units. Size tests also apply, so that the penalty for larger entities is multiplied by either two or five.

Source: www.ato.gov.au

Category: Taxes

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