The tax office is again cautioning the public not to rush into lodging their returns at the start of the new financial year.
The Australian Tax Office (ATO) says lodgements filed as soon as the financial year ticks over are often incomplete or inaccurate, triggering delays.
ATO Assistant Commissioner Anita Challen says taxpayers can save time and effort by waiting until their pre-fill is available.
“While the ATO welcomes enthusiasm at the start of tax time, the numbers don’t lie – lodging too early creates more work for taxpayers,” she says.
“Many taxpayers assume getting in first means getting a faster refund but that is not always the case.
“Early lodgement increases the likelihood of missing information and mistakes being made, which can delay processing and require amendments.”
TAX RUSH ‘BACKFIRES’
Challen says too many people are still rushing through their returns.
“We know doing your return isn’t at the top of most people’s to-do lists but we see many still rush to get it done; it’s worth taking the time to get it right the first time,” she says.
During the 2024-25 financial year:
Those who lodged before pre-fill were more than twice as likely to have their returns changed.
The ATO corrected more than 140,000 individual returns with discrepancies in employment income, interest, dividends, welfare payments, Medicare levy exemptions and private health insurance.
The agency’s data matching program adjusted more than 595,000 individual returns due to missing income, overstated deductions and credits, and other discrepancies. Source: ATO
For the quickest and most seamless lodgement, wait until late July, the agency says.
By then, most pre-fill information is available in returns, including wages, bank interest, government payments and private health insurance details.
“The ATO collects and pre-fills a wide range of information to make (this) time easier,” Challen says.
“Taxpayers simply need to check the information (and) add in any missing information, including cash income, and eligible deductions.”
The agency says the time before pre-fill can be used to:
- download the ATO app to track their employment income, store expense records, and receive account notifications.
- check personal information and bank details are up to date.
- check the ATO occupation guidesto see what deductions they may be eligible to claim.
MORE TAX NEWS: ATO chases $50bn in unpaid debt
