The main charges for failing to meet tax obligations are the:

• General interest charge (GIC) – applies to a variety of situations, whenever amounts owing to the Australian Taxation Office (ATO) are paid after the due date.
• Shortfall interest charge (SIC) –  applies to a variety of situations where a tax liability is increased in an amended assessment
• Failure to lodge on time penalty (FTL) – administrative penalty which may be applied if a taxpayer fails to lodge a return, statement, notice, or another document with the ATO by the due date.

Additional penalties include failing to:

• Keep or retain required records
• Retain or produce required declarations
• Provide access and reasonable facilities to an authorised tax officer
• Apply for or cancel GST registration when required
• Issue a required tax invoice or adjustment note
• Register as a PAYG withholder when required
• Lodge a required activity statement electronically
• Pay a required amount electronically

If a taxpayer is audited and an amended assessment is raised, further penalties of up to 75% of the additional tax levied may be applied, depending on the severity of the offence. Examples include making a false or misleading statement, not taking reasonable care, or taking a position that is not reasonably arguable in a tax return or other document.