Early Lodgement Could Delay Refunds for Thousands
The Australian Taxation Office has warned taxpayers to wait before lodging their returns on July 1. Rushing to submit could delay refunds due to missing or incorrect data. Last year, 142,000 early lodgers needed to amend returns or were subject to ATO corrections.
ATO assistant commissioner Rob Thomson advised taxpayers to lodge from late July. “We know doing your tax return is something to tick off your to-do list each year, but there’s no need to rush. The best time to lodge is from late July once everything is ready,” Thomson said.
Pre-Filled Returns Reduce Mistakes and Save Time
The ATO pre-fills returns with data from employers, banks, government agencies and health funds. Lodging early may mean some of this data is missing. “We pre-fill information from your employer, banks, government agencies and health funds into your tax return to help you get it right the first time — regardless of whether you use a registered tax agent or lodge yourself,” Thomson said.
Employers have until July 14 to finalise payroll information. Lodging before this date can result in incorrect income data on your return.
ATO assistant commissioner Rob Thomson
Waiting Helps Ensure Correct Information and Deductions
By late July, most information will be pre-filled. Taxpayers only need to check their details, add any deductions or offsets and submit. Common deductions include work-related expenses, charitable donations and self-education costs.
Taxpayers can prepare by collecting receipts and reviewing eligibility for deductions using the ATO occupation guides.
ATO App Offers Tools to Prepare and Lodge Securely
The ATO encourages Australians to use the official app to track expenses and lodge returns. The app allows users to check when income statements are marked ‘tax ready’. Setting up a strong digital identity also helps secure personal data.
Taxpayers must ensure bank and personal details are up to date before submitting. Lodging with outdated information may cause delays in receiving refunds.
Average Refund Expected to Reach $1,519 This Year
Finder research shows more than 10 million Australians expect a refund this year. The average refund is anticipated to be $1,519. Nearly 25% say the refund is “very important” to their financial health, while 7% consider it “critical”.
Caution Over Last-Minute Purchases Before June 30
Taxpayers considering end-of-financial-year purchases have been warned about ATO rules. Items over $300 are not immediately deductible in full. These assets must be depreciated over their useful life.
Tax Invest Accounting director Belinda Raso explained the implications. “So at this time of year, we’ve got so many different companies like Officeworks spruiking everything’s tax deductible. And it is, but you’re not going to get all of that money back. Employees must be aware that if it’s over $300, it must be claimed over its useful life,” Raso said.
Also Read: ASX 200 Midday Update: Materials Surge While REH Drags on Gains
Depreciation Rules Apply to Big-Ticket Work Items
Examples of depreciable assets include laptops, mobile phones, furniture, hand tools and equipment. A $3,000 laptop purchased on June 15 for full work use would generate only a $66 deduction this financial year.
Buying the same laptop on July 1 allows a full year of depreciation next tax cycle. The deduction then would rise to $750.
Raso added, “There’s no rush before June 30, unless it’s under $300.”
ATO Depreciation Tool Helps Calculate Claim Amounts
The ATO provides a depreciation calculator online and via myGov. It lists the effective life of common assets. For instance, laptops and iPads generally depreciate over two years. Mobile phones last two years, and desktop computers up to four years.
Taxpayers must carry forward depreciation schedules across future tax returns. If they switch accountants, they need to share prior year returns to ensure deductions continue.
“Whether you go through a tax agent or you lodge it yourself, that depreciation schedule that you’ll have, you then need to continue that on for every tax return until it’s fully expensed,” Raso said.
Failing to do so could result in missed deductions and lost refunds.
Awareness and Preparation Key to a Smooth Tax Season
The ATO’s guidance aims to improve accuracy and reduce the risk of delays. Taxpayers are encouraged to prepare in advance but lodge only after information is finalised.
Australians should verify their income statements are marked ‘tax ready’ and review the ATO guides to confirm allowable claims. Those relying on tax refunds for financial support must ensure accurate records and correct timing to avoid setbacks.
The ATO will continue to monitor early lodgements closely in July. Taxpayers who follow the advice to wait may avoid costly delays and benefit from faster refunds.
