ATO Lodgment Deferral: What You Need to Know

Tax time does not always run smoothly. Your books might be behind, a key staff member could be unwell, or important records may not arrive when expected. Situations like this happen to many business owners and individuals each year.

The problem is that the ATO lodgment deadline does not automatically move, even when circumstances make it difficult to complete a return on time. That is where a lodgment deferral in Australia can come in.

A lodgment deferral gives eligible taxpayers extra time to submit their return. But the Australian Taxation Office (ATO) does not grant extensions automatically. There are specific conditions that must be met before a request is approved.

This guide explains what a tax lodgment extension in Australia actually means, when the ATO may approve one, and the key questions you should ask before applying.

What Is a Tax Lodgment Deferral?

A lodgment deferral is simply an extension of time to lodge a tax document with the ATO

It is important to understand what it does and does not do.

A deferral extends the date you must lodge your return, but it does not remove your obligation to pay any tax owed. If you have a tax liability, payment deadlines may still apply even if the lodgment date changes.

The main benefit of an ATO lodgment deferral is that it protects you from a Failure to Lodge (FTL) penalty, which the ATO may apply when a return is submitted late without approval.

Another key point is that individuals and businesses generally cannot apply for a deferral themselves. Requests are made through Online Services for Agents, which means a registered tax agent must apply on your behalf.

This is why many taxpayers speak with their accountant as soon as they realise they may miss a deadline.

The 3 Questions the ATO Says You Must Ask Before Applying

Before submitting a tax return extension request in Australia, the ATO recommends considering three important questions. These help determine whether a deferral is appropriate in the first place.

1. Are the circumstances truly exceptional or unforeseen?

The ATO will generally only approve a lodgment deferral when circumstances are genuinely outside your control.

Examples the ATO may accept include:

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  Serious illness affecting the taxpayer or a key staff member
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  Unexpected staff absences that disrupt accounting processes
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  Natural disasters or other major disruptions

If these situations prevent the preparation of a return, a deferral request may be reasonable.

However, the ATO is clear about one situation that does not qualify.

A client simply failing to send their paperwork on time is not considered a valid reason for a deferral.

This is one of the most common mistakes made when applying for an ATO lodgment deferral.

When a tax agent submits a request, they must explain several details, including:

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  What happened
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  When the issue occurred
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  Whether the situation is ongoing
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  How it prevents the return from being lodged
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  Why the request is being made after the due date, if applicable

Providing clear information helps the ATO assess the request quickly.

2. Does your client have a 15 May due date?

Many taxpayers do not realise that if their return is due on 15 May, they may not need to apply for a deferral at all.

The ATO provides what is known as the 5 June tax concession.

Under this concession, eligible taxpayers automatically receive additional time to lodge and pay their tax, provided both actions occur by 5 June.

This concession generally applies to:

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  Individual tax returns
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  Partnership returns
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  Trust returns

It can also apply to companies and super funds where both the current and prior year returns are non-taxable or result in a refund. Large and medium taxpayers are excluded.

This small extension often saves tax agents and business owners unnecessary administrative work.

If your return qualifies for the 5 June concession, there is no need to submit a lodgment deferral request.

3. Would a Supported Lodgment Program be a better fit?

Sometimes the issue is not just one return running late.

Entire accounting practices can fall behind due to staff shortages, high workloads, or unexpected disruptions. In those cases, applying for multiple individual deferrals may not be the most practical solution.

Instead, the ATO offers a Supported Lodgment Program.

This program allows the ATO to work directly with a tax practice to help manage overdue obligations. The process may involve:

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  Reviewing and prioritising outstanding returns
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  Removing inactive or no-longer-relevant clients from lodgment lists
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  Applying deferrals where appropriate
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  Temporarily suspending compliance actions in certain cases

The key point is timing. If a practice believes it may fall behind, applying for support early often leads to a smoother outcome.

Waiting until deadlines have already passed can make the situation harder to resolve.

How to Actually Apply for a Lodgment Deferral

If you and your tax agent determine that a lodgment deferral in Australia is appropriate, the application process is relatively straightforward.

Your agent will submit the request through the ATO's Online Services for Agents platform.

The general steps include:

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  Log in to Online Services for Agents
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  Navigate to Reports and Forms, then select Lodgment Deferrals
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  Choose the deferral reason from the available options, such as agent circumstances, client circumstances, or a new or re-engaged client
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  Submit the request

Up to 40 deferrals can be requested at one time.

Processing times depend on the type of request. Agent-assessed requests are typically processed within 48 hours, while ATO-assessed requests may take up to 28 days during busy periods.

Once submitted, a receipt ID is issued so the request can be tracked online.

What Happens If Your Request Is Rejected?

Not every deferral request is approved.

If the ATO declines an application, the notification will usually appear in Practice Mail, which is the communication system used by tax agents.

In some cases, it may be possible to request a review of the decision if new information is available.

However, if the request is rejected and the return is already overdue, Failure to Lodge penalties may still apply.

This is one reason why many taxpayers choose to work with a registered tax agent who understands the ATO lodgment deferral process and can assess the situation before submitting a request.

Speak With a Tax Agent Before the Deadline

If you are behind on a tax return or worried about an upcoming deadline, the best step is to speak with a registered tax agent before the due date rather than after.

At The Kalculators, our team works with individuals and businesses across Adelaide to manage lodgment obligations and avoid unnecessary penalties. We can help determine whether a lodgment deferral, the 5 June concession, or a supported lodgment program is the right option for your situation.

If you need guidance, you can book a consultation with our team today.

Call (08) 7480 2593 to speak with our advisors.
With 7+ Adelaide locations and after-hours appointments available, support is always close by.

You can also explore our services for:

• 
  Tax Accountant Adelaide
• 
  Small Business Tax Return
• 
  Business Advisory