The late lodgment of a tax return attracts a penalty of five penalty units for a large entity, two penalty units for medium entities, and one penalty unit for small entities for each 28-day period that the return is not lodged. One penalty unit is equal to AUD 222 from 1 July 2020.
General interest charge (GIC) is applied to unpaid tax liabilities calculated on a daily compounding basis on the amount outstanding, even in cases where the tax payable is being disputed by a taxpayer who has initiated the formal objection or appeal procedure in relation to the amount. The GIC interest rate is based on the quarterly average Reserve Bank 90-day bill acceptance rate plus 7%. GIC is applied on a daily compounding basis. The GIC annual rate for the fourth quarter of the income year 2021-22, i.e., for the quarter April to June 2022, is 7.07% (previously 7.04% for the quarter January to March 2022).