The Australian Tax Office has issued an important warning to Australian taxpayers as millions prepare to file their tax returns after the 2023-24 tax year.
The number of online scams targeting Australians has “increased quite dramatically”, says Finder head of consumer research Graham Cooke. “The total number of reported scams increased from 240,000 scams in 2022 to 300,000 last year,” he told Sky News presenter Steve Price. “At this time of year they tend to be tax scams, they are scams posing as someone offering a tax refund or scams posing directly from your MyGov account or the ATO.”
ATO assistant commissioner Rob Thomson warned that those who file their tax return in early July are twice as likely to make a mistake.
“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.”
ATO assistant commissioner Rob Thomson has told Australians to take their time with taxes to avoid mistakes. Photo: ATO
According to Thomson, those who apply quickly often forget to include key information about dividend income, interest from banks, private health insurance agencies and private health insurance details.
Information from most employers, banks, government agencies and health funds will be automatically uploaded to the ATO from the end of July, regardless of whether a taxpayer files their own return or uses a tax agent.
Thomson said that while many want to file their taxes as soon as possible, the best thing they can do is wait.
“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,” he said.
“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. “
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The ATO has reminded Australians to ensure all details are correct on their tax form and has assured them that an income return will be marked as “tax ready” once an employer has pre-completed and finalized information.
“Once the information we collect is available, all you have to do is check it and add whatever is missing,” Thomson said.
Those who make errors on their tax return can correct them through myGov or with their tax agent after the initial filing has been processed.
Nearly one in two Australians are expecting a tax refund this year, with the average recipient set to have $1288 back in their pocket, according to a Finder survey.
More than nine million Australians are expecting a tax refund this year and the average amount returning to their pockets is $1288. Image: Supplied
More than 9 million Australians will see a very welcome cash injection from the ATO, with 1 in 10 saying cash is critical to their financial well-being and another 1 in 4 of respondents saying it was very important.
Funds are essential for everyday Australians looking for ways to manage financial pressures, according to Finder personal finance expert Sarah Megginson.
“While many households face the cost of living, millions are waiting for a cash injection to ease their financial problems,” Ms Megginson said.
“There may be an influx of early accommodations as many rely on increased funding.”
The government will give the ATO the power to ensure multinational companies pay a greater proportion of revenue generated in Australia in tax. This comes as the government approaches a second consecutive budget surplus. Compliance efforts in 2023 secured an additional $6.4 billion in tax revenue from large corporations and multinationals, a record windfall from the ATO’s Tax Evasion Task Force. Since 2016, it has helped secure more than $27.7 billion in additional revenue. PepsiCo is one of many examples of the power of the ATO, as the company was worth $91 billion, but the American maker of such famous brands as Pepsi, Gatorade and Dorito’s is now appealing a landmark tax case that could affect how in which each A multinational company operates in Australia and pays taxes in the future.
Echoing Ms Megginson’s point was CPA Australia spokesperson Gavan Ord, who shared his five dos and don’ts of tax.
Ord asked Australians to be as thorough as possible, while urging taxpayers to purchase work-related items before June 30, seek professional tax help and take their time filing their taxes.
“Cost-of-living pressures may mean people are more eager than usual to file their taxes and access a refund,” he said.
“We know it’s tempting to file straight away, but you should wait for the ATO to finish pre-populating your tax information. This may take several weeks or more.
“Many people who file in early July end up having to amend their returns later, so it’s best to wait. It will save you in the long run.”
