The Australian Taxation Office (ATO) has announced that it is now time for taxpayers to lodge their tax returns. However, they have cautioned against submitting returns too early, as this might lead to mistakes that could prompt further review.
For most individuals with straightforward tax situations, the ATO has pre-filled more than 91 million pieces of information from various sources, including employers, banks, government agencies, and private health insurers. Assistant Commissioner Rob Thomson encourages taxpayers to start the lodging process, whether using a registered tax agent or the ATO’s myTax platform.
If you are filing your return independently, it is essential to verify that all pre-filled data is accurate, to add any missing information, and to include any eligible deductions. The deadline for self-lodgers is October 31, while those working with a professional have until May 15 of the following year.
When completing your tax return, inclusivity is key. According to Thomson, all sources of income must be declared, which includes earnings from gig economy jobs or side hustles. The ATO offers 40 specific guides tailored to various industries to help taxpayers understand what they can claim and what records they need to substantiate their claims.
While most taxpayers with standard situations can begin lodging their returns now, those with more complex tax matters are advised to wait until later in the year, as relevant information might not yet be available. Hripsime Demirdjian from Hive Wise confirms that individuals with simple earnings and no investments can safely commence their tax returns but should postpone if they have investments such as managed funds, which generally have later reporting deadlines.
It is critical to ensure that all information marked in your pre-filling report is ‘tax ready’ to guarantee completeness before submission. Post-lodgement, taxpayers will receive a notice of assessment from the ATO detailing any potential tax refund or outstanding tax payments.
Recent research from Finder indicates that over 10 million Australians anticipate receiving a tax refund this year, with the average refund expected to be around $1,519. Receiving a refund indicates that you may have overpaid tax during the year, although financial experts caution that a large refund might not always be beneficial from a financial planning perspective.
Taxpayers can track their refunds through the ATO app or via ATO online services through myGov. According to Thomson, most refunds are processed within two weeks, and there is no way to expedite this process, regardless of inquiries made.
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