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 →
To get ATO late lodgement penalties waived, you must first lodge the overdue documents, then submit a formal remission application explaining the circumstances that prevented you lodging on time, supported by evidence. The ATO grants remission regularly - but the quality of the application matters enormously.
What the ATO accepts as grounds
Remission decisions turn on whether your circumstances were genuine and whether you acted to fix things once you could. Strong grounds include serious illness or hospitalisation, mental health conditions, family breakdown or domestic violence, natural disasters, the loss of a loved one, and severe financial hardship. "I was busy" doesn't work; "my business collapsed and I was caring for a sick parent" - documented - very often does.
The 2026 process (it changed)
From January 2026 the ATO requires formal applications for all remission requests, and it will not consider remission until the outstanding lodgement is in. Requests involving larger penalty amounts are escalated to a dedicated team. That means the order of operations is fixed: prepare returns → lodge → apply for remission with evidence attached. Get the order wrong and the request bounces.
Evidence wins cases
Medical certificates, hospital records, separation documents, insurance claims from disasters, letters from treating professionals, financial statements showing hardship. A remission letter that ties each period of non-lodgement to documented circumstances, then demonstrates voluntary correction, is a fundamentally different document to a one-line "please waive my fine" - and it gets fundamentally different results.
Don't forget interest
The General Interest Charge can also be remitted in the right circumstances, and on multi-year debts the interest often exceeds the penalties. We routinely request both together.
Frequently asked questions
How long does a remission decision take?
Can remission be requested after I've paid the penalty?
What if remission is refused?
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.