In a move that may surprise some, the Australian Taxation Office (ATO) has asked taxpayers to take their time filing their tax returns in an effort to reduce erroneous filings.
While filing tax returns begins on July 1, which is next week, the ATO has asked the public to postpone meeting their tax obligations, at least until the end of July.
ATO Deputy Commissioner Rob Thomson said those who applied in early July were twice as likely to make an error on their tax return.
“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,” he said, “This is particularly relevant if you receive income from multiple sources.
“We see a lot of mistakes where people who rush to apply early forget to include interest from banks, dividend income, payments from government agencies and private health insurance details.”
Let the system work for you
Australia has a particularly convenient tax system, under which employers, banks, government agencies and health funds must submit tax information on their behalf, formally submitting it to the tax office.
Waiting until the end of July, when most of these entities have done their part, results in fewer errors that must be corrected at a later date, which could lead to penalties.
“We know some prefer to cross their tax return off their 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 explained.
“In the meantime, you can get started on your tax obligations by gathering all the necessary records, ensuring your details are up to date and reviewing the occupancy guides on the ATO website to check you are claiming what you are entitled to. “
Ensuring your contact details, address and banking details are accurate will reduce delays in receiving your potential tax return.
“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,” Thomson continued.
“Once the information we collect is available, all you need to do is verify it and add whatever is missing.”
If you notice that you have made a mistake, the myGov portal offers an online amendment process or you can rectify it through your registered tax agent.
The ATO tends to be very lenient on honest errors, as long as they are reported promptly.
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