ATO late lodgement penalty: up to $364 per 28 days, capped at $1,820 per document · interest 11.43% p.a. compounding daily · See how to remit them →
What remission means, and what it covers
Remission is the ATO exercising its discretion to reduce or cancel amounts it has charged you.
| Amount | Remittable? | Typical strength of case |
|---|---|---|
| Failure to lodge (FTL) penalties | Yes | Strong for a first offence or voluntary lodgment |
| General interest charge (GIC) | Yes | Moderate, needs a cause or hardship |
| Shortfall interest charge (SIC) | Yes | Moderate |
| 75% default assessment penalties | Partially | Harder, usually reduced on lodgment of true returns |
| The underlying tax itself | No | Tax owed is tax owed, only payment plans help |
What actually drives approval
The ATO doesn't publish a penalty waiver approval rate, but its published decision framework shows the same factors deciding outcomes.
- Working against you: repeated late lodgment across multiple years.
- Explanations amounting only to being busy or forgetting, or financial difficulty alone with no triggering event.
- Waiting until debt collection began before engaging.
- Requesting remission while returns are still outstanding. Fix this first, always.
One note on the rules: since 1 July 2025 GIC is no longer tax deductible, which raised the real cost of interest and hardened the ATO's stance on interest remission for those who simply choose to pay later. Genuine-circumstance cases still succeed.
The five elements of a request that gets approved
Writing the request
Identification
Your name, TFN or ABN, the penalty notice reference, and the exact amount you are asking to be remitted.
Status
Confirm all lodgments are now up to date, or give committed dates. Remission requests with returns still outstanding are close to automatic refusals.
Grounds with dates
The specific events, when they happened, and how they prevented lodgment. Attach evidence such as a medical certificate, disaster declaration or correspondence.
Prompt action
Show that you acted as soon as you reasonably could once the obstacle lifted.
Forward commitment
One line on how you'll stay compliant: agent engaged, reminders set, payment plan active.
Keep it to one page. Facts, not apology. The officer needs boxes ticked, not remorse.
Copy-paste template
Request for remission of failure to lodge penalty - [Full name], TFN [xxx xxx xxx]
I request remission of the FTL penalty of $[amount], notice reference [number], dated [date], relating to my [year] income tax return.
All my lodgments are now up to date. The [year] return was lodged on [date], together with returns for [other years, if any].
The delay was caused by [specific circumstance] between [date] and [date]. [One or two factual sentences, for example: I was hospitalised in March 2025 and was my father's full-time carer until his death in November 2025; supporting medical documentation is attached.]
I lodged as soon as I was reasonably able, engaging a registered tax agent on [date]. This is my first late lodgment and my history is otherwise compliant. [If tax is owing: a payment plan for the outstanding balance was established on [date] and payments are current.]
I have [engaged a registered tax agent / set lodgment reminders] to ensure future returns are lodged on time. On this basis I request that the penalty be remitted in full. Attached: [list].
Submit it via ATO online services secure mail, which keeps a written trail, through your tax agent, or by phone for small first-offence amounts, where remissions are often granted on the spot.
If they say no
You can ask for the decision to be reviewed, escalate to a formal complaint, and for penalties above a threshold, object or apply to the tribunal. In practice, most refusals fail on missing elements, and a resubmission with returns lodged, dates added and evidence attached frequently succeeds where a vague first attempt didn't.
Remission guidance checked July 2026.
Frequently asked questions
Does the ATO actually waive penalties?
What is the ATO penalty waiver approval rate?
Can GIC interest be remitted as well as penalties?
Do I need to lodge before requesting remission?
Can a tax agent request remission for me?
General information only - not personal tax, financial or legal advice. Consider your own circumstances or speak to a registered tax agent. Remission of penalties or interest and payment plans are decisions of the ATO and outcomes can't be guaranteed.