Millions of Australians expect to get a tax refund this year, with the average person anticipating a cash boost of $1,288. While this will be welcome money for many Australians, being patient could save you a big headache with the Australian Taxation Office (ATO).
The tax office warns taxpayers not to rush to file their tax returns as soon as possible on July 1. Instead, they urge people to wait a few more weeks.
ATO assistant commissioner Rob Thomson said taxpayers who file their returns in early July were twice as likely to make an error.
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“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,” Thomson said.
“This is particularly relevant if you receive income from multiple sources.”
Forgetting to include bank interest, dividend income, payments from government agencies and private health insurance details are among the most common mistakes made.
Most information from employers, government banking agencies and health funds will be automatically loaded into your tax refund from the end of July, the ATO said, regardless of whether you use a tax agent or host yourself.
Verify that your employer income return is marked “tax ready” and that your pre-populated information is available in myTax before you file.
“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.
Australians told to ‘try hard’
In the meantime, Australians are encouraged to gather all necessary information, ensure their details are up to date and check what they are entitled to claim.
Now the low and middle income tax offset is no more, said Tax Invest accounting director and registered tax agent Belinda Raso. people needed to “put in the effort” if they wanted to get a refund this year.
“Unless you have deductions, our tax system is not set up for us to get a refund,” Raso said. Yahoo Finance.
“If your employer has withheld correctly, you will not receive a refund. Your refunds are based solely on deductions. So if you don’t have any, you won’t get a refund.”
The ATO has occupancy guides you can consult to see what you can and cannot claim. H&R Block’s director of tax communications, Mark Chapman, has also written a helpful deductions guide here.
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