ATO TAX Return Warning: Don’t Lodge Early, 142,000 Made This Mistake Last Year
Do you know that filing your tax return too early could cost you your refund or even trigger penalties?
The Australian Taxation Office (ATO) has issued a fresh ATO Tax Return Warning for the 2024–25 tax season. The advice is clear: do not rush to lodge your return on July 1. The ATO is urging taxpayers to wait until late July, when most pre-fill data is complete, to avoid common and costly mistakes.
Why Is the ATO Warning Taxpayers?
Last year, 142,000 people submitted their tax returns too early, often missing vital information like bank interest, employer income, or government payments. Many had to amend their returns later, which led to processing delays and even incorrect assessments.
So, what’s the issue here?
When people file before employers, banks, and government agencies have submitted accurate income reports, the returns are incomplete. The ATO’s systems rely on these pre-fill data streams to help Australians lodge error-free.
What Is Pre-Fill Data?
Pre-fill data includes information from employers via Single Touch Payroll (STP), banks, health funds, and government bodies like Centrelink. These details automatically appear in your online tax return by mid-to-late July.
ATO Assistant Commissioner Rob Thomson explained,
“If you lodge before your income is fully reported, your return may be wrong, and you might end up repaying money.” That’s a situation nobody wants.
You can also listen to the official Audio Media Release of the Assistant Commissioner.
What Should You Do Instead?
The ATO recommends checking your myGov account regularly in July. Once all your income, deductions, and offsets appear in the pre-fill, then it’s safe to lodge.
If you’re unsure, using a registered tax agent can help ensure all your data is complete and accurate before submission.
What Mistakes Did People Make Last Year?
According to the ATO:
- 38 percent missed bank interest
- 33 percent of omitted government payments
- 27 percent didn’t include wages from second jobs
- Some even failed to report crypto income and side hustles
These oversights may result in penalties, delayed refunds, or worse, being flagged for audit.
Are Refunds Delayed for Early Filers?
Yes, early lodgers often experience longer delays due to manual checking. The ATO needs to cross-verify details, especially if information is missing or conflicting. This slows everything down.
Why risk it? Waiting an extra few weeks can save you weeks or months of back and forth.
What About the $1,500 Refund Talk?
There’s been buzz around $1,500 average refunds this year due to stage-three tax cuts and bracket adjustments. But the ATO warns: only eligible taxpayers will receive that amount. Filing early without proper figures can jeopardize your claim.
So again, patience pays off.
Are There Any Exceptions?
If you’re leaving the country permanently or facing special circumstances, the ATO allows early lodgment with supporting documents. But for the majority of taxpayers, the safest time to lodge is after July 15.
How Can You Stay Updated?
The ATO advises:
This way, you’ll know exactly when your income details are ready and avoid unnecessary stress.
Final Take
This year’s ATO TAX Return Warning isn’t just a reminder; it’s a serious push to reduce mistakes, save time, and help Australians get the refunds they deserve. With 142,000 taxpayers stumbling into trouble last year, this warning couldn’t be more timely.
So, what’s the takeaway? Wait for your data, double-check everything, and lodge smart, not fast.
Disclaimer
This content is made for learning only. It is not meant to give financial advice. Always check the facts yourself. Financial decisions need detailed research.