Piece of cake: ATO reminds taxpayers to lodge returns only after being ‘tax ready’
Taxpayers are being reminded by the Australian Taxation Office (ATO) not to rush lodging their annual income tax return from July 1.
With only a few days left to go before the end of the financial year, taxpayers are being reminded by the Australian Taxation Office (ATO) not to rush lodging their annual income tax return from July 1.
Regardless of whether Australian taxpayers use a registered tax agent or lodge their own return, from late July most information from employers, banks, government agencies and health funds will be automatically loaded into tax return.
While many taxpayers will be keen to file their return as soon as possible, the ATO has cautioned that taxpayers who lodge before their income statement is marked as ‘tax ready’ and their other pre-fill information has been received run the risk of processing delays and follow-up questions from the ATO if their return is incomplete.
ATO Assistant Commissioner Tim Loh explained that returns lodged in early July are more likely to be changed by the ATO compared to those lodged later.
“While you can lodge from 1 July, there is a much higher chance that your return will be missing important information if you lodge your return before late July. If you forget to include everything, it will slow down the progress of your return, and you’ll likely end up with more work to do down the track,” he said in a statement this week.
“No one likes life admin, and we want to help save you somewhere we can. If you have simple affairs, by waiting a few more weeks until all your information is pre-filled into your tax return, you’ll save yourself extra work and worry by getting it right the first time.
“If you tried to bake a cake in an oven that wasn’t pre-heated, you’d end up with a half-baked disaster. Lodging your tax return before everything is ready is similar. Be patient, wait for your data to be pre-filled, and you’ll end up with a perfectly baked tax return!
“Once the information we collect is available, all you need to do is check it and add anything that’s missing. Essentially, all a well-baked cake now needs is icing and sprinkles.”
The ATO said it expects fewer people to receive a tax refund for this financial year, while others may receive smaller refunds than they were expecting, and more may have tax debts to manage.
“If you receive a debt this year that you weren’t expecting or you’re getting behind with your tax, you may be able to set up your own payment plan on the ATO website. If you need additional support, reach out to us or have a chat with your registered tax agent as early as possible so we can find a solution,” Loh said.
The ATO also confirmed that Australian taxpayers who realise they have made a mistake can fix errors or omissions in their tax returns through the ATO online amendment process. This can be accessed via myGov or by speaking to a registered tax agent.
Small businesses are also being reminded ahead of tax time to be aware of the now-available new small business boost, temporary full expensing ending on June 30, and deduction rate changes for those running a business from home or claiming car expenses.
