The start of a new financial year is always a busy time. For many Australians, it’s also a time of anticipation—especially if you’re hoping for a tidy tax refund from the Australian Taxation Office (ATO).
But before you rush to lodge your tax return on 1 July, there’s a crucial warning you need to hear: lodging too early could cost you, and in some cases, it could mean missing out on an average refund of $1,519.
It’s tempting to submit your tax return as soon as midnight on 1 July, especially if you’re expecting a refund.
However, according to tax experts and the ATO itself, patience is a virtue during tax time.
Hripsime Demirdjian, founder of Hive Wise, cautioned that lodging your return too early can lead to incomplete or incorrect information being submitted.
That’s because not all your financial data—such as income from your employer, bank interest, insurance payouts, or managed fund earnings—may have been reported to the ATO yet.
For example, your employer has until 1 July to finalise and submit your payroll data. If you lodge before this, your salary information may be missing or incomplete in the ATO’s system.
The same goes for other sources of income, which can take even longer to be reported and pre-filled.
Submitting your tax return before all your information is ‘tax ready’ can have several consequences:
- Mistakes and missed deductions: Rushing increases the risk of errors or forgetting to claim deductions you’re entitled to.
- ATO reviews and delays: Early lodgers are more likely to have their returns flagged for review or amendment, which can delay your refund.
- Amendments required: Last year, over 142,000 early birds had to amend or change their returns by the ATO due to missing or incorrect information.
The ATO’s advice is clear: wait until your income statement is marked as ‘tax ready’ and your data has been pre-filled. This ensures your return is accurate and reduces the risk of delays or audits.
When is the best time to lodge?
While you can technically lodge your return from 1 July, most experts recommend waiting until at least mid-July. This is usually a safe window if you’re a salaried employee with no investments.
However, if your tax affairs are more complex—say, you have managed funds, share dividends, or other investments—it’s wise to wait until August or September, as this information often takes longer to be reported.
Always check your ATO pre-filling report and ensure everything is marked as ‘tax ready’ before you hit submit.
Just because you shouldn’t lodge immediately doesn’t mean you can’t get prepared. Use this time to:
- Gather receipts and invoices for work-related expenses.
- Collect end-of-financial-year statements from banks, super funds, and investment providers.
- Review the ATO’s occupation and industry-specific deduction guides to ensure you claim everything you’re entitled to.
A little preparation now can mean a bigger refund—and less stress—later.
If you lodge online or through a tax agent, the ATO usually processes returns within two weeks. Paper returns take much longer—up to 10 weeks.
Once processed, you’ll receive a notice of assessment telling you whether you’re getting a refund or owe any tax.
According to a Finder survey, more than 10 million Australians expect a tax refund this year, with the average refund at $1,519.
That’s not small change, especially in today’s cost-of-living climate. Don’t risk missing out or delaying your refund by lodging too early.
Have you ever lodged your tax return early and run into trouble? Or do you have a tried-and-true system for maximising your refund? We’d love to hear your stories and tips—share them in the comments below.
Also read: Boost your tax refund by $870 with these easy ATO tips
