iscoverAs the 31 October 2025 tax lodgment deadline nears, many Australians still hold a common misconception: that simply engaging a registered tax agent before the cutoff automatically secures an extension until 15 May 2026.
No compliance, no extension: Accountant warns late lodgers as 31 Oct deadline looms
28 October 2025
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9 minute read
However, the ATO has clarified that this extension is not automatic, particularly for taxpayers with outstanding prior-year returns. In short, signing up with an agent at the last minute won’t save you from the 31 October deadline if your previous tax obligations remain unlodged.
No automatic extension for overdue returns
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Under the ATO’s Registered Agent Lodgment Program 2025-26, taxpayers who had any prior-year tax returns outstanding as of 30 June 2025 are ineligible for the usual agent-facilitated extension to 15 May 2026. Instead, their 2025 return is due by 31 October 2025, regardless of when they sign up with an agent.
The ATO’s guidance makes clear that having even one overdue return on 30 June means the concessional deferred deadline in May “is off the table” for the current year. Such taxpayers must lodge by 31 October (the standard deadline), or risk being considered late and exposed to penalties.
This rule ensures the extended lodgment concession remains a reward for clients in good compliance standing. Importantly, if all outstanding prior-year returns are lodged by 31 October 2025, the ATO will allow the extended lodgment program due dates to apply to the 2025 return. In practical terms, that means taxpayers can regain the later deadline (up to 15 May 2026) only by catching up on any overdue filings by 31 October. Otherwise, missing the 31 October due date will result in the return being late, with no special treatment just because an agent was engaged.
Conditions for extension eligibility
For most individual taxpayers, the extended tax return due date (generally 15 May of the next year) is a privilege that comes with using a registered tax agent. However, two key conditions must be met to qualify for this concession:
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Engage an agent by 31 October: You need to be officially registered as a client of a registered tax agent on or before 31 October of the tax year. The ATO sets 31 October as the final date to add new clients under an agent’s lodgment program. Missing this cutoff means you’ll be treated as a self-filer with no extension, even if you later enlist an agent’s help.
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No overdue prior returns: You must have no outstanding tax returns from prior years as of 30 June of the previous financial year. The lodgment program extension is only available to those with a clean compliance history. If one or more prior year returns were overdue on 30 June, the current year’s return defaults to the 31 October due date (and all those back returns are expected to be lodged by that date as well).
If either condition is not satisfied, the ATO denies the extended deadline, meaning your income tax return is due by 31 October, not in May. This catches out many late filers who assumed an agent’s involvement buys extra time. Failure to lodge by 31 October when required can attract substantial ATO penalties, even if you were expecting an extension.
Penalties and warnings for late lodgment
Taxpayers who incorrectly bank on an automatic extension and miss the 31 October deadline face the risk of late lodgment penalties. Currently, the ATO’s Failure to Lodge (FTL) penalty starts at about $330 for being just one day late, then accrues an additional $330 for each 28-day period the return is overdue, up to a maximum of around $1,650 for individuals. These fines apply per return, so having prior year returns unlodged can multiply the exposure. On top of that, the ATO may impose interest (General Interest Charge) on any tax liabilities, and late lodgements can draw unwanted attention or even audit activity.
ATO officials have stressed that 31 October is a firm deadline for anyone who doesn’t meet the extension criteria. Tax agents themselves are being urged to communicate this nuance to clients in the final days of October, lest taxpayers mistakenly assume they’re in the clear until May, only to incur avoidable fines. Late or outstanding returns are one of the ATO’s most visible compliance red flags, and misunderstanding the lodgment program’s rules can lead to hefty penalties and missed opportunities for a legitimate deferral.
As tax professionals, we’re reminding clients that the May 2026 extension isn’t an entitlement – it’s a compliance reward. Staying up to date with prior returns is the simplest way to preserve that privilege.” This means that taxpayers who maintain a clean lodgment record get to benefit from the generous agent-assisted deadline, whereas those who don’t are expected to prioritise prompt lodgment of their current return.
Bottom line: If you had any overdue tax returns as of 30 June, mark 31 October as your due date – no exceptions. Engaging a tax agent can still be extremely helpful for many reasons, but it won’t magically erase past non-compliance. The ATO’s digital systems now track lodgments in real time, so only those who play by the rules get the luxury of extra time. To avoid nasty surprises, get all outstanding returns filed by 31 October 2025 and stay in touch with your tax agent. That way, you’ll keep your lodgment extensions earned and steer clear of ATO penalties.
Puneet Singh is a registered tax agent and principal accountant at Nanak Accountants & Associates.
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