The commencement of a new financial year signifies the onset of Australia’s tax season, inspiring many Australians to anticipate tax refunds. The optimal time to submit your tax return for the 2024-25 financial year is reportedly a few weeks after tax season begins, according to financial experts.
Mark Chapman from H&R Block recommends that Australians expecting a tax refund should aim to lodge their returns between mid-July and mid-August. He emphasises that lodging a tax return during the first week is often counterproductive, as the Australian Taxation Office (ATO) typically does not process refunds until about a week into the month. Conversely, if you’re anticipating a tax bill, waiting closer to the October 31 deadline might be wise, allowing more time to accumulate necessary funds.
Susan Franks, a tax expert with Chartered Accountants Australia and New Zealand, notes that the ideal lodgement timing varies based on income sources. For those with only salary or wage income and interest, filing in August is generally advisable. However, individuals earning dividend income may benefit from waiting until the end of September, while those involved with investments in unit trusts should aim to file by the end of October.
Jenny Wong from CPA Australia urges taxpayers to avoid early lodgement, as incomplete pre-fill information (such as wages and interest) does not become available until mid-July. While individuals can manually enter details, this approach carries the risk of error, which is a common pitfall. Mistakes necessitate amendments, or worse, could result in penalties and interest.
Taxpayers should remain vigilant not to delay filing too long. The deadline for self-lodging is October 31, and those using tax agents must appoint one by this date to avoid late fees. Experts caution against rushing the lodgement process to prevent errors, as minor details, such as misspelling names or incorrect banking information, can lead to complications and delays.
In conclusion, while the beginning of tax season might ignite excitement for refunds, the advice from experts underscores the importance of timing and careful consideration when lodging tax returns to ensure a seamless process.