What Happens If I Don’t Lodge My ABN Tax Return?

If you don’t lodge your ABN tax return in Australia, the ATO can apply penalties, estimate your income, and charge interest on any unpaid tax. Ignoring your tax obligations doesn’t make them go away — it usually makes them worse.

Even if your income was low or your business didn’t perform well, you still need to report it. The risk isn’t just financial — it can affect your future returns and your standing with the ATO.

What the ATO Does When You Don’t Lodge

This process isn’t immediate — but it is predictable. The longer you delay, the worse the outcome becomes.

GoTax is an online tax return system designed for small business owners, freelancers, and ABN holders who want a fast, simple, and accurate way to complete their tax return.

Late Lodgement Penalties

If you don’t lodge on time, penalties apply.

These are typically calculated:

• per period overdue
• increasing the longer you delay

What starts as a small issue can quickly turn into a much larger one.

ATO Estimated Income (Default Assessment)

If you don’t lodge, the ATO may estimate your income based on available data.

This can include:

• bank information
• third-party reports
• industry benchmarks

The problem? These estimates are often higher than your actual income.

Which means:

• higher tax assessed
• more difficult to correct later

Interest Charges

If tax is payable and remains unpaid, interest is applied.

This compounds over time.

So you don’t just owe tax — you owe:

• tax
• penalties
• interest

That combination escalates quickly.

Increased Audit Risk

Once you miss lodgements, your profile changes.

You’re more likely to:

• be reviewed
• be audited
• have future returns scrutinised

Even after you fix the issue, the flag can remain.

“I Didn’t Earn Much” — The Common Mistake

This is the most common excuse.

“I didn’t earn enough to worry about it.”

It doesn’t work that way.

Even small amounts of ABN income:

• must be declared
• are often tracked by the ATO

Skipping your return creates a problem, not a shortcut.

Example: Small Delay, Bigger Outcome

An ABN holder earned $12,000:

• didn’t lodge for two years
• assumed it was too small to matter

Result:

• penalties applied
• ATO estimated higher income
• interest added

After fixing:

• return lodged
• penalties reduced

But it took time — and effort — to unwind.

Lodging Late vs Not Lodging

Late is not ideal.
But not lodging is significantly worse.

What If You Made No Income?

You may still need to:

• lodge a nil return
• or notify the ATO

Doing nothing is not the same as having no obligation.

Record Keeping Still Matters

Even if you’re late, your records need to be accurate.

Using something like:
https://www.ecashbooks.com.au/

…means:

• income and expenses are tracked
• reporting is easier
• corrections are possible

Without records, fixing the problem becomes harder.

Related: Do You Need to Lodge?

If you’re unsure about your obligation:

https://www.gotax.com.au/abn-tax/do-i-need-to-lodge-tax-return-abn

If You’re Behind on Your Tax Return

There are only two options:

• fix it
• or let it grow

Waiting does not improve the outcome.

How GoTax Helps You Catch Up

GoTax makes it straightforward to lodge your return, even if you’re behind:

• guided process
• structured income and deduction entry
• reviewed by registered tax agents
• fixed price of $140

Start your online tax return here:
https://www.gotax.com.au/

FAQ

What happens if I don’t lodge my ABN tax return?

You may face penalties, interest, and ATO action.

Can the ATO estimate my income?

Yes — and it’s often higher than your actual income.

Will I get fined for lodging late?

Yes — penalties can apply depending on how late you are.

Can I fix a missed tax return later?

Yes — but the longer you wait, the harder it becomes.

What Now?

If you’re behind on your tax return, the best move is simple — fix it now.

Every day you delay increases the problem.

Signup to GoTax and not only get your Tax return done, you can also ask as many questions as you like and get informed answers. You have access to the equivalent of a Tax Einstein - that is our very own D.e.r.e.k as well as the best credentialed Tax Accountants around.

https://www.gotax.com.au/small-business-tax-return

About This Article

Author: GoTax Editorial Team
Topic: Australian Tax Returns and ABN Compliance
Audience: Small Business Owners, ABN Holders
Purpose: Help users understand the risks of not lodging a tax return Australia