More Time for Small and Medium Businesses to Correct Tax Returns (August 25)

Relevant For:

Small and medium business owners and managers with annual turnover under $50 million.

Key Points:

• From 2024–25 onwards, SMBs with turnover under $50m have four years (up from two) to amend income tax returns.
• Applies to errors, omissions, incorrect claims or changes in circumstances.
• Earlier income years still have the two-year limit.
• Period starts the day after ATO issues the notice of assessment.
• Prompt amendments can reduce penalties and interest.
• Voluntary disclosures are viewed more favourably than audit discoveries.
• Good record-keeping remains essential.

Full Article:

Running a small or medium business means keeping on top of your tax obligations, but mistakes or oversights can happen.