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Australian Tax Return: Key Dates and Important Advice for Taxpayers
As the financial year draws to a close, Australian taxpayers are reminded of the critical timelines and considerations to ensure a hassle-free tax return process. Alesha Masaud, director of Tax App, advises taxpayers to hold off lodging their tax returns until after July 14, a guideline rooted in several key factors linked to the finalisation of payroll data and income statements by employers.
Key Deadlines and Recommendations
Today, employers must complete the necessary payroll data submissions to the Australian Taxation Office (ATO) for the 2024-25 financial year. As taxpayers contemplate lodging their returns, experts suggest that while preparations can begin, the timing remains crucial.
Masaud explains that the ATO has extended the deadline for employers, which potentially affects when taxpayers can submit their returns. "Previously, individuals might have lodged on July 1, but now, it’s advisable to wait until after July 14," she suggests. The reasoning is clear: if any discrepancies arise due to incomplete data, taxpayers who have already lodged may need to amend their returns, leading to complications and potential repayments.
Complex Returns Require More Patience
Furthermore, taxpayers with more intricate returns—those involving multiple income sources such as managed funds or share trading—are advised to wait longer before submitting. Managed funds, for instance, can take from late July to mid-August to finalise their statements. "It’s essential for individuals to verify they’re in receipt of all relevant information before lodging," Masaud states.
The ATO has reinforced this advice, urging individuals to wait until their income statements are marked as ‘tax ready’ and to ensure that pre-filled data from the ATO is accurate. According to the ATO, most pre-fill data is usually finalised by the end of July, including insights from institutions like Centrelink and financial firms. However, data such as partnership and trust distributions may arrive later.
The Risks of Early Lodgement
The statistics from the ATO illustrate the potential pitfalls of early submissions. In the first fortnight of July last year, around 142,000 early lodgers found themselves needing to amend their returns due to inaccuracies. ATO assistant commissioner Rob Thomson highlights, "Lodging in late July ensures accuracy. You can cross-check your information, add any missing details, and include any eligible deductions or offsets."
Preparing for Lodgement
Before you lodge your tax return, it’s prudent to gather all necessary documents—employment information, personal records, and updates to bank details are essential. Taxpayers are encouraged to refer to ATO’s occupation guides to understand what deductions they might be eligible to claim.
For those who might receive a tax refund, the processing times are typically two weeks for returns lodged online or through a tax agent, but can extend to ten weeks for paper submissions. Following processing, individuals will receive a notice of assessment which indicates either a tax refund or outstanding tax obligations.
Conclusion
In summary, the important message for Australian taxpayers this financial year is to practice patience. Waiting until after July 14—preferably until late July—can mitigate errors and complex amendments. Ensuring that all data is accurate and complete before lodging will streamline the tax return process and safeguard against unexpected issues.
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