Tax Season Advice: Wait Until After July 14 to Lodge Your Tax Returns
As the 2024-25 financial year begins, Australian employers are reminded that today marks the deadline for submitting payroll data to the Australian Taxation Office (ATO). Taxpayers are urged to start preparing their returns, but experts recommend waiting at least until July 14 to lodge them.
Alesha Masaud, director of Tax App, advised that while some may be tempted to file early, it can lead to complications if their information isn’t fully finalised with the ATO. This year, more Australians filed their tax returns on July 1 than in the previous year, despite warnings from tax authorities about potential errors.
"Previously, lodging on July 1 was acceptable. However, the ATO now allows until July 14 for employers to finalise payroll data. If individuals submit their returns before this date, they may face the hassle of amending them later, which can incur additional costs," Masaud explained.
For those with relatively simple tax situations—such as those only receiving employment income—Masaud suggests waiting until after July 14 when their income statements are confirmed by the ATO. However, individuals with more complex tax returns, particularly those with multiple income sources such as managed funds or share trading, should aim to wait longer.
Important Considerations for Lodging Tax Returns
- Managed Funds: These can take from late July to mid-August to finalise, so it’s vital to check with your fund for updates.
- Share Trading & Health Insurance: Similar to managed funds, ensure all relevant information is in order before lodging your return.
The ATO has indicated that the best time to submit your tax return is from late July onward, once all documentation is verified and pre-filled data becomes available. Employees are encouraged to check their ATO accounts for their income statements, which are often marked as ‘tax ready’ by the end of July.
Last year, over 142,000 individuals who lodged their returns in the first two weeks of July had to amend their submissions or faced inquiries due to inaccuracies. To avoid this, the ATO recommends that if you wait until late July to file, you will only need to verify your information, include any missing items, and note any eligible deductions or offsets.
Tips for a Smooth Tax Lodgement
- Ensure all records are organised and personal information is current.
- Review the ATO’s occupation guides to identify potential deductions.
- Be mindful of the varied processing times—around two weeks for online lodgements and up to ten weeks for paper submissions.
- After processing, you will receive a notice of assessment from the ATO, confirming any tax refund or outstanding tax liabilities.
By following these recommendations, taxpayers can mitigate the risk of errors and ensure a smoother lodgement process, maximising their potential refunds and minimising unnecessary complications.
