Tax time is upon us again, and for millions of Australians, that means the tantalising prospect of a cash boost—on average, a tidy $1,519 landing in your bank account.
But before you start planning how to spend your refund, the Australian Taxation Office (ATO) has a stern warning: don’t let your eagerness trip you up.
The great Australian refund rush
According to new research from Finder, more than 10 million Australians are expecting a tax refund this year. For many, it’s not just a nice bonus—it’s a lifeline.
Seven per cent of those surveyed said the extra cash was ‘critical’ to their financial wellbeing, and nearly a quarter said their refund was ‘very important’ for their financial health.
With the cost of living biting hard, it’s no wonder so many are counting down the days until they can lodge their returns.
Interestingly, women are feeling the pinch more acutely, with 39 per cent saying their refund is ‘critical’ or ‘very important’ to their finances, compared to just 24 per cent of men.
But not everyone is expecting good news: 18 per cent of Australians think they’ll actually owe the taxman this year.
Why you shouldn’t rush your return
With so much riding on that refund, it’s tempting to lodge your tax return the moment the clock strikes July 1.
But experts and the ATO are urging caution. Jenny Wong, tax lead at CPA Australia, warns that rushing can lead to costly mistakes.
‘Firing the starting pistol on your tax return too quickly means you could end up shooting yourself in the foot,’ she says. ‘There’s a misconception that lodging early means you’ll receive your refund first, but it’s not as simple as that.’
In fact, lodging too early often means you’re missing key information, like interest from banks, dividend income, or health insurance details, that the ATO hasn’t yet pre-filled.
This can lead to errors, delays, or even the dreaded need to amend your return later on. The ATO recommends waiting until the end of July, when most of your information will be automatically included, making the process smoother and more accurate.
Where people go wrong: Common tax time traps
Every year, the ATO sees the same mistakes crop up. This year, they’ll be keeping a close eye on:
Work-related expenses: Are you claiming for things you’re not entitled to? The rules have changed, especially for those working from home.
Multiple income sources: Forgetting to include all your income streams can land you in hot water.
Rushing the process: As mentioned, lodging too early can mean missing out on legitimate claims or making errors that slow down your refund.
How to make the most of your refund
Finder’s Graham Cooke suggests thinking carefully about how you use your refund. ‘Consider using the funds to pay down debt, deposit into a high-interest savings account, or contribute to superannuation to maximise long-term benefits,’ he says.
It’s easy to see the refund as ‘fun money’, but with interest rates and living costs on the rise, putting it towards your financial future could be the smartest move you make all year.
Tips for a smooth tax return
Gather your paperwork: Start collecting receipts, statements, and records of work-related expenses now.
Wait for pre-fill: Give the ATO time to gather all your income and deduction data, usually by late July.
Double-check your details: Make sure your bank account and contact information are up to date.
Seek help if you need it: If your tax situation is complicated, consider speaking to a registered tax agent.
Have your say
Are you counting on a tax refund this year? Have you ever made a mistake by lodging too early—or scored a bigger refund by waiting? Share your experiences and tips in the comments below. Your story could help another YourLifeChoices member avoid a costly tax-time blunder!
And remember: patience pays off at tax time. A little extra care now could mean a bigger, faster refund—and fewer headaches down the track.
Also read: ATO targets 2.6 million small businesses—are you ready for tax time?
I have done my Tax through a Tax Agent in Mid October, for around the past 20 years.
There are some Tax related Information that I do not receive until sometime in August or September, and then it gives me time to get everything correlated to take to the Tax Agent.
But,, in the passed two years the ATO has made ERRORS in their “Data Matching” that my Tax Agent has been able to solve, in conjunction with the ATO.