THAT’S the message from the Australian Taxation Office (ATO), informing taxpayers that they risk any tax refund being delayed or having their return adjusted if their return is lodged before their income statement is marked as ‘tax ready’.
Last July, over 140,000 taxpayers had their 2020-21 tax return amended before the ATO issued their tax assessments.
While you can lodge your return from July 1, Assistant Commissioner Tim Loh said that the ATO see more mistakes in early July, as people rush to get their tax returns done.
“You can lodge on 1 July, but you are punting with your tax return by risking delays to any refund you are owed. If you forget to include everything, you may end up answering questions from the tax office,” Mr Loh said.
Mr Loh explained that the ATO pre-fill some of the information in taxpayers returns, such as wages, health insurance and interest to help individuals “get it right the first time”. This process is usually finalised by late July.
“Thanks to pre-fill, waiting a few extra weeks can make lodging your tax return online quicker and easier,” Mr Loh said.
“The stakes are high for early July lodgers. People who lodge in July are twice as likely to have their returns adjusted by the ATO.”
To check if pre-filled information is available and confirm if income statements are ‘tax ready’, you can visit the ATO app or log in ATO online services via myGov.
“Once the information we collect is available, all you need to do is check it and add anything that’s missing. This will give you time to find receipts from the last twelve months, which you can upload to the myDeductions tool in the ATO app, then upload straight to your tax return,” Mr Loh said.
“Waiting for the ATO to upload information means people don’t have to roll the dice when they lodge, and it’s less likely an amendment will need to be made later, which could result in a tax debt.”
Where someone feels the pre-filled figure needs to be changed, they must ensure they have the appropriate records to support the adjustment.
