The Tax Agency warns taxpayers not to rush to file their tax return on July 1.
The ATO says it is cracking down on incorrect returns this tax time, and taxpayers who rush to file their returns on July 1 are twice as likely to make mistakes.
Deputy Commissioner Rob Thomson said the ATO saw “many mistakes” by early tenants, particularly those who had multiple sources of income.
Forgetting to include interest from banks, dividend income, payments from government agencies and details of private health insurance were among the most common problems, he said.
“Tax season is not a race, and there is a much higher chance that your return will be missing important information if you file it in early July.”
The ATO identified taxpayers’ failure to include all income at the time of filing as one of three areas of focus when filing taxes.
Earlier this month, he also warned against landlords who inflate rent deduction claims and against people who incorrectly claim work-from-home expenses.
Rental deductions would come under the microscope after the ATO found that 9 in 10 rental property owners made mistakes on their tax returns, with the most common problem being incorrect repairs and maintenance claims.
Another target of the ATO will be work-related expenses in light of recent changes to the work-from-home deduction rules.
The ATO said taxpayers could avoid making mistakes on their tax returns by waiting until the end of July to file them, when most information from employers, banks, government agencies and health funds would be automatically loaded onto tax returns.
“We know some prefer to cross their tax return off the to-do list early and not think about it for 12 months, but the best way to get it right is to wait just a few weeks to file,” Thomson said.
In the meantime, the ATO said taxpayers could take the time to compile all necessary records, ensure details were up to date and review occupancy guides on the ATO website to check their claims were accurate.
“Take some time to make sure all your details are correct. This includes your contact details, address and bank details. Updating them after applying can cause delays,” Thomson said.
Once employers pre-populated and finalized the information, income statements would be marked as “tax ready.”
“You can check to see if your employer has marked your income return as ‘ready to file,’ as well as whether your pre-fill is available in myTax before you file. Once the information we collect is available, all you need to do is verify it and add whatever is missing,” Thomson said.
Errors made on returns can be rectified through myGov or by speaking to a registered tax agent.
“People sometimes make mistakes,” the ATO said.
“Taxpayers who realize they have made a mistake can correct errors or omissions on their tax return once their initial filing has been processed through the ATO’s online amendment process.”
