The Australian Tax Office (ATO) has issued a cautionary message to taxpayers regarding the timing of filing tax returns. It emphasises that being overly organised can lead to potential errors, and advises against lodging returns until the income statement is marked as “tax ready” with data pre-filled by the ATO.
Last year, approximately 142,000 individuals needed to amend their tax returns or faced investigations by the ATO due to inaccuracies, often stemming from premature submissions. Many of these submissions occurred in the first two weeks of July, with some taxpayers neglecting to accurately declare their incomes.
Rob Thomson, the ATO’s Assistant Commissioner, recommends waiting until late July to lodge returns. He notes that while people often feel compelled to complete their tax returns quickly, there’s no rush. The ATO’s pre-filling feature helps ensure that taxpayers can correctly declare their finances by incorporating information from employers, banks, government entities, and health funds.
Waiting for this pre-filled data can significantly reduce the chance of mistakes, which, if made, can lead to complications and delays in tax refunds. Thomson highlights that by filing toward the end of July, taxpayers only need to verify their information, fill in any gaps, and include relevant deductions or offsets.
For those eager to prepare in advance, the ATO suggests gathering necessary records, ensuring personal and banking details are current, and reviewing the ATO’s occupation guides to identify potential deductions. This preparation will ultimately facilitate a smoother lodging process when the time arrives.