As the end of the financial year approaches, many Australians are gearing up to lodge their tax returns. But while it might feel satisfying to cross that task off your list early, the Australian Taxation Office (ATO) has issued a crucial warning: lodging too soon could lead to costly mistakes.
Last year, over 142,000 Australians either had to amend their tax returns themselves or had them adjusted by the ATO due to errors—many of which occurred because people rushed to lodge their returns in the first fortnight of July.
The Problem with Lodging Too Early
According to the ATO, lodging your return before your income statement is marked as “tax ready” could mean you’re submitting incomplete or incorrect information. That’s because, in early July, many employers and financial institutions are still finalising the information that gets sent to the ATO.
“We know doing your tax return is something to tick off your to-do list each year, but there’s no need to rush,” said ATO Assistant Commissioner Rob Thomson. “The best time to lodge is from late July once everything is ready.”
What Does “Tax Ready” Mean?
Your income statement—previously known as a group certificate—comes from your employer and shows how much you earned and how much tax was withheld. It needs to be finalised and marked as “tax ready” before the ATO can pre-fill your return.
Other important data, such as interest earned from your bank accounts, private health insurance details, and information from government agencies like Centrelink, is also sent to the ATO. When you lodge too early, these fields might be blank or contain outdated information, which means your return could be inaccurate.
Why Prefilling Matters
Each year, the ATO uses this incoming data to automatically pre-fill much of your return. This includes details like:
- Employment income
- Interest from bank accounts
- Dividend payments
- Private health insurance cover
- Centrelink payments
Prefilling helps reduce mistakes and ensures your tax return reflects the most accurate and up-to-date information. It also saves time and effort when lodging, especially if you’re doing it yourself online through myTax or the ATO app.
“If you wait until late July to lodge, all you need to do is check your information, add anything that’s missing, and include any deductions or offsets that you’re eligible for,” Thomson said.
Avoid the Headache of Amendments
Amending a tax return is not only time-consuming, but it can also delay your refund and potentially attract penalties if the ATO believes you were negligent. That’s why it’s safer to be patient.
The 142,000 Australians who got caught out last year are a clear sign that lodging early without the right data can backfire.
In some cases, these early lodgers forgot to include income from casual or gig work, investment returns, or government payments. In other instances, they claimed deductions they weren’t entitled to or miscalculated their expenses. Once the ATO compared their return against the data it later received, inconsistencies were flagged, leading to audits or amendments.
What You Can Do Now to Get Ready
Just because you shouldn’t lodge your return right away doesn’t mean you can’t prepare. Here are some simple steps you can take now to get organised:
- Check Your Income Statement
Log in to your myGov account and link it to the ATO. Keep an eye on your income statement and wait until it's marked “Tax ready.” - Update Personal Details
Make sure your contact details and bank account information are current. This ensures you receive your refund promptly and don’t miss any important notices. - Gather Receipts and Records
Collect receipts, invoices, and records of work-related expenses, charitable donations, and other deductions. Digital copies are accepted by the ATO, so scan or photograph physical receipts. - Review ATO Occupation Guides
The ATO publishes occupation-specific guides to help you understand what deductions you can and cannot claim. These are useful tools to make sure you’re claiming correctly—and not over-claiming. - Consider Using a Registered Tax Agent
If your finances are complex or you’re unsure about what to claim, a registered tax agent can help. Just remember that if you’re using an agent for the first time, you need to engage them before 31 October to qualify for extended lodgement deadlines.
What You Can Claim: Common Deductions
To ensure you’re not leaving money on the table, consider the following deductions you might be eligible for:
- Work-related expenses: Tools, equipment, uniforms, and home office costs.
- Vehicle and travel expenses: If you use your car for work (not including commuting).
- Self-education expenses: Courses related to your current employment.
- Subscriptions and memberships: Professional journals or union fees.
- Donations: Gifts over $2 to registered charities.
Always keep proof of any deductions you claim, and make sure they directly relate to your work. The ATO uses sophisticated data-matching tools, so don’t be tempted to exaggerate.
When Will Tax Refunds Be Paid?
For those who lodge after their return is pre-filled, refunds typically start arriving within two weeks. However, if your return is selected for review or contains errors, the process can take longer.
If you’re lodging via a tax agent, ask them for an estimated timeline. Agents usually receive earlier updates on the progress of your return from the ATO.
Final Thoughts: Patience Pays Off
While it’s understandable that many Australians want to lodge early—especially when expecting a refund—rushing can create bigger problems. The ATO’s message is clear: waiting a few extra weeks can save you a lot of hassle.
So this July, resist the urge to hit “submit” too soon. Spend the early part of the month getting your records in order, and then lodge once your return is accurate, pre-filled, and tax ready.
By following the ATO’s advice, you’ll avoid the stress of amendments and ensure you get your refund without any unnecessary delays.
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Mitchell
Mitchell is a seasoned Ph.D. scholar with extensive expertise gained through years of rigorous research, publication, and teaching experience. He brings a wealth of knowledge and analytical skills to tackle complex academic challenges. His work is dedicated to delivering innovative solutions, advancing knowledge, and promoting academic excellence. Proficient in research methodology, data analysis, and scholarly writing, Mitchell has contributed to peer-reviewed journals and mentored students to achieve academic success.
