Around 2 million Australians who do their own tax returns still hadn’t lodged for the 2025-26 financial year as of Monday, two weeks out from the Australian Taxation Office cut-off of 11.59pm local time on Monday 2 November.
The number was reported by The West Australian, drawing on the ATO’s lodgement reminder. The ATO media release, issued by Assistant Commissioner Anita Challen, says the office has taken in roughly 9 million income tax returns for the year so far.
So about one in five of the returns the ATO expects from self-preparers is still sitting in somebody’s glovebox.
The date that matters is 2 November, not 31 October
The standard cut-off for people lodging their own return is 31 October. That falls on a Saturday this year, so the deadline rolls forward to 11.59pm local time on Monday 2 November, SBS News reported.
Using a tax agent buys more time, but there’s a catch that bites sole traders every year. SBS reported you have to be on the agent’s books by 31 October to pick up the agent’s extended lodgement date. Ring an accountant on 1 November and that window has already shut.
If you’ve used the same agent for years and they’ve already got you listed, you’re covered. If you went elsewhere last year, or you’ve never lodged through an agent, don’t assume.
What lodging late actually costs
The failure-to-lodge penalty runs on 28-day cycles. SBS reported it’s calculated at one penalty unit for every 28 days, or part of that period, a return is overdue, capped at five penalty units for an individual.
H&R Block’s lodgement date guide puts the current figure at $364 for each 28-day period overdue, to a maximum of $1,820 for individuals and small entities.
That’s the full fine reached after about four and a half months of doing nothing. For a sole-trader chippy, $1,820 is a decent run of consumables, or a week’s fuel and tolls, gone on an administrative stuff-up rather than anything that happened on a job.
Tools over $300 don’t come off in one hit
The rule that catches tradies rushing a late return is the immediate deduction threshold. The ATO’s tradie deductions guidance says an item costing $300 or less can be claimed in full in the year you bought it. Anything above $300 has to be depreciated over its effective life instead.
In practice that means the $280 multi-tool and the $700 cordless drill kit are treated completely differently, even though they were bought in the same hardware run. One is a single line on this year’s return. The other gets written off in slices across several years.
The other trap is the employer. The ATO is clear that employee tradies can claim tools and equipment they use for work, but only the work-related portion where there’s private use as well, and not at all if the boss supplied the gear or reimbursed the cost. Gear that came off the company account isn’t yours to claim.
Tools, protective gear, licences and vehicle costs between job sites are the deductions tradies most commonly reach for. They’re also the ones most likely to get guessed at when someone is filling out a return at 10pm on a Sunday with the deadline the next day.
What to watch
Two dates, and they’re not the same date. 31 October is the day you need to be registered with a tax agent if you want their longer deadline. 2 November at 11.59pm is the day your own return has to be in if you’re lodging it yourself.
If the shoebox of receipts hasn’t been opened since June, the next fortnight is the time to sort it. Separate the sub-$300 purchases from the big-ticket gear before you start, because that’s the split the return asks you to make, and it’s the one that costs you money if you get it wrong.
Frequently asked questions
When is the tax return deadline this year?
Self-lodgers must lodge by 11.59pm local time on Monday 2 November. The usual 31 October cut-off falls on a Saturday this year, so it rolls forward, according to SBS News.
What happens if I lodge my tax return late?
The ATO charges one penalty unit, currently $364, for every 28 days a return is overdue, capped at five units, or $1,820, for individuals and small entities.
Can I claim the full cost of tools on my tax return?
Only if an item costs $300 or less. Anything above $300 has to be depreciated over its effective life instead of claimed in full, per the ATO’s tradie deductions guidance.
Do I need to be registered with a tax agent before 31 October?
Yes. To get an agent’s extended lodgement date you need to already be on their books by 31 October; registering on 1 November or later misses the window, SBS reported.
Sourced from The West Australian, NewsWire, SBS News, Australian Taxation Office, H&R Block. Original article.
