The beginning of the new financial year brings exciting new prospects and the inevitable need to lodge tax returns for the 2022 financial year.
However, the Australian Tax Office (ATO) warns taxpayers of the risk of delays on any tax refunds and/or of the potential of having their return adjusted if lodged in early July. While you can lodge on 1 July, the ATO suggests that taxpayers hold off lodging their tax return until their income statement is marked as ‘Tax ready’ as greater portions of mistakes are made in early lodgements. Delays in finalisations and processing of information by employers, financial institutions, government agencies and health funds can contribute to missing information on your tax return if lodged early.
As many of you will know, the ATO will pre-fill information such as your wages, health insurance and interest from banks on your tax returns. This process is often finalised by the ATO by late July, meaning that lodgements made prior to this time are much more likely to face adjustments with the inclusion of updated pre-fill information. The ATO advises if taxpayers wish to check if their pre-filled information is readily available and to confirm their income statements are ‘tax ready’, visit the ATO app or log in to the ATO online service through myGov.