Tax time is just around the corner, and for millions of Australians, that means the promise of a tidy little windfall—on average, $1,288 back in your pocket, according to Finder.
But before you start planning how to spend your refund, there’s a crucial warning from the Australian Taxation Office (ATO) and financial experts: rushing your tax return could end up costing you dearly.
Why the rush could backfire
It’s tempting, isn’t it? As soon as the clock strikes midnight on July 1, you’re ready to log in, fill out your details, and hit ‘submit’—all in the hope of getting your refund as quickly as possible.
But Jenny Wong, tax lead at CPA Australia, says this is a classic case of ‘shooting yourself in the foot.’
‘There’s a misconception that lodging early means you’ll receive your refund first, but it’s not as simple as that,’ Wong explains.
‘It’s common for people who lodge early to end up having to amend their returns later anyway, so it’s best to wait. It’ll save you in the long run.’
The reason? Your employer, private health insurer, and other institutions need time to finalise and report your income and other details to the ATO.
If you lodge before all this information is available, you risk submitting an incomplete or incorrect return. That could mean delays, amendments, or even an audit—none of which are fun.
The real cost of getting it wrong
With the cost-of-living crisis biting hard, it’s no wonder so many of us are eager for that refund. Finder’s research shows nearly one in four Australians plan to use their tax return to pay essential bills or insurance, while others will put it towards credit card debt or the mortgage.
But if you rush and make a mistake, you could end up waiting even longer for your money, or worse, missing out on deductions you’re entitled to.
What you need to do before lodging
So, what’s the smart move? Wait until late July or even early August to lodge your return. By then, most employers and insurers will have reported everything the ATO needs. You can check your myGov account to see when your income statement is marked as ‘tax ready’.
But don’t just copy and paste last year’s details. Wong warns that many people go into ‘autopilot’ and forget to account for changes in their work or personal circumstances.
Maybe you travelled more for work this year, or your work-from-home expenses changed. You may have started a new job and had to buy tools, pay for training, or subscribe to industry publications. All of these could be legitimate deductions.
The ATO provides detailed guides for different industries and occupations, so take the time to check what you can claim.
And remember, if you’re not sure, it’s always better to ask a registered tax agent than to rely on generic advice from the internet—or, heaven forbid, an AI chatbot.
Beware of bad tax advice
Speaking of which, CPA Australia strongly advises against using AI platforms like ChatGPT for tax advice.
While technology can be helpful, it’s no substitute for professional guidance when it comes to something as important as your tax return.
‘Getting your tax return right is your responsibility,’ Wong says. ‘Failure to properly declare your income increases your chances of being audited by the ATO. Failing to claim everything you’re entitled to means less cash back than you could otherwise get.’
Tips for a stress-free tax time
- Wait for your income statement to be ‘tax ready’ on myGov before lodging.
- Review your expenses and deductions—don’t just repeat last year’s return.
- Check the ATO’s occupation and industry guides for specific deductions.
- Keep records and receipts for all claims you make.
- Consult a registered tax agent if you’re unsure about anything.
- Avoid using AI or unverified online sources for tax advice.
How do you handle tax time?
Are you someone who likes to get in early, or do you prefer to wait until all the information is in? Have you ever made a mistake by lodging too soon—or scored a bigger refund by taking your time? We’d love to hear your tax time tips, stories, and questions in the comments below!
Remember, a little patience now could mean a bigger, faster refund—and a lot less stress. Happy tax season!
Also read: Why retirees should be bracing for a new tax on unrealised gains
I do my Tax through a Tax Agent in mid October, and I still have had the ATO make mistakes with their Data Matching, and Pre-Loading of my Tax Information.
EG:- In May this Year I received a letter from the ATO saying that there was an error in my Tax Return highlighted by their Data Matching, Immediately made an appointment with my Tax Agent, and took both last tears Tax statement and the previous years statement, and the letter from the ATO with me. The Tax Agent then logged into the ATO, compared both returns and could NOT find any difference. The Tax Agent then contacted the ATO and queried them re the perceived discrepancy,, but the Tax Officer from the ATO could NOT find what the discrepancy was.
Result: It was an ATO problem and I can ignore the letter and request form payment !!