Tax Time Advisory: ATO Reminds Australians to Prepare for Tax Returns Cautiously
As tax season approaches, the Australian Taxation Office (ATO) has issued a crucial advisory for taxpayers, urging them to refrain from lodging their tax returns immediately on July 1. This warning is underscored by data showing that nearly 142,000 individuals who rushed to file their returns during the initial weeks of the tax period last year faced complications. Many had to modify their submissions or had their returns scrutinised and amended due to errors, often resulting in delayed refunds.
Rob Thomson, an ATO assistant commissioner, suggests that the optimum time to lodge tax returns would be from late July, when taxpayers can benefit from the ATO’s pre-filled data feature. "While it may feel satisfying to tick tax returns off your to-do list, haste can lead to mistakes. It’s advisable to wait until late July when all necessary information has been compiled," Thomson stated.
This pre-filling process includes data from employers, banks, government agencies, and health funds, making it easier for taxpayers to submit accurate returns—whether they do it themselves or with the assistance of a registered tax agent. Employers typically have until July 14 to finalise their payroll data with the ATO through the single touch payroll system, ensuring that the information is available to the taxpayers afterwards.
Waiting until late July allows individuals to review their personal data, add any missing information, and include eligible deductions and offsets. The ATO encourages Australians to organise their receipts and records from throughout the year and examine which deductions they can claim. "To prepare effectively, ensure your records are complete, your personal and bank details are current, and refer to the ATO occupation guides for potential deductions," Thomson added.
Moreover, the ATO recommends downloading the ATO app to establish a secure digital identity and maintain personal records of work-related and general expenses. Once employers have finalised income statements, they will be marked as "tax ready." Taxpayers can confirm this status and check for pre-filled information via the myTax platform or the ATO app.
With financial pressures on many Australians, interest in tax refunds is particularly high. Recent research by Finder indicates that over 10 million Australians expect a tax refund this year, with the average refund projected at approximately $1,519. The desire for these funds is pronounced, as nearly one-quarter of respondents expressed that their refund would significantly impact their financial health, while 7% deemed it "critical."
Graham Cooke, head of consumer research at Finder, highlights the urgency felt by many. "For numerous Australians living paycheck to paycheck, tax refunds represent an essential financial cushion," he noted, referencing the broader economic challenges posed by the soaring cost of living.
In conclusion, the ATO’s guidance to delay tax submission until late July and its emphasis on preparation can assist individuals in avoiding common pitfalls, ensuring that they can navigate tax season smoothly and potentially receive their refunds without unnecessary delays.
Please be proactive in maintaining accurate records and double-checking your information to take full advantage of the tax refund process this year.
