From Aspire Consulting 

There is an important, and potentially costly, development concerning taxpayers who have overdue income tax returns.

The ATO has recently advised tax professionals that it has already begun sending default assessment warning letters to taxpayers with overdue returns.

The warning letters state that if the overdue returns are not lodged by the date specified, the ATO will issue default assessments based on an estimated taxable income.

When a default assessment is issues, taxpayers are likely to incur a penalty for failure to lodge on time, AND administrative penalties of at least 75% of the tax-related liability from the default assessment.

If you have overdue income tax returns, please contact us to discuss how to avoid further penalties.