Don't Rush Your Tax Return

Why waiting can save you a second round of paperwork

When the financial year ends on 30 June, your full tax information does not appear at the Australian Taxation Office overnight. Employers, banks, share registries, health funds and government agencies need time to finalise and report their records.

The ATO advises that late July is usually a better time to lodge. By then, most information has been received and added to its pre-filling service. That does not mean every person must wait until the same date. It means you should check that the records relevant to you are complete before your return is lodged.

Why does this matter? If you lodge before an employer marks your income statement as Tax ready, or before investment income arrives, the figures in your return may be incomplete. You may then need an amendment. Your refund could be delayed, reduced or followed by a tax bill.

Consider Mia, who changed jobs during the year and earned interest through two banks. One employer finalised its payroll data on 5 July. The other did so a week later. Her second bank reported interest after that. If Mia had lodged on 2 July, she would have needed to enter figures from her own records and watch for later changes. By waiting and reviewing each source with her accountant, she reduced the chance of an amendment.

What pre-fill data can cover

Pre-fill data is information that other organisations send to the ATO. It can save time and help identify income you may have missed. It is a starting point, not a guarantee that your return is complete.

Other information may include government payments, managed fund distributions, employee share scheme amounts and some capital gains data. If you earned foreign income, rent, cryptocurrency income or income through a digital platform, do not assume the full amount will appear automatically.

You remain responsible for reporting all assessable income. Compare pre-filled figures with your own statements. If a figure appears wrong, do not delete or replace it without checking the source. Your employer, bank, insurer or investment provider may need to correct the record it sent.

Check these items before you lodge

The right time to lodge depends on what happened during your year. The table below gives you a practical way to check whether your records are ready.

Common reasons a return needs to be amended

An amendment changes a return after it has been lodged. It can correct a genuine mistake, but it also creates more work. The ATO may issue a new notice of assessment, change your refund or create an amount to pay.

Early lodgers often need amendments because an employer updates an income statement, a bank reports interest, or a dividend or managed fund amount arrives after lodgment. Other common causes include:

• leaving out income from a previous employer or side job
• using a bank balance instead of the gross interest earned
• missing franking credits shown on a dividend statement
• entering private health insurance details against the wrong person
• claiming a deduction without the required record or work-related link
• forgetting a capital gain from shares, property or cryptocurrency
• receiving a corrected annual tax statement after lodging

Waiting does not remove every chance of a change. Some statements are issued later, and providers can correct data. A pre-lodgment review still gives you the best opportunity to spot gaps before they become amendments.

What to bring to your tax appointment

Your accountant can prepare your return more quickly when your documents are complete and organised. Bring the records that apply to your circumstances, even if you expect the same details to be pre-filled.

• photo identification and your current contact and bank account details
• income statements or payment summaries that are not available through pre-fill
• bank interest summaries and records for jointly held accounts
• dividend statements and annual tax statements from managed funds or trusts
• private health insurance information if the pre-filled details need checking
• rental property income, expense, loan and property manager records
• share, cryptocurrency and other asset purchase and sale records
• foreign income and foreign tax paid records, converted or ready for conversion
• receipts or evidence for work-related expenses, donations and tax advice costs
• work-from-home, vehicle or travel records where you plan to claim a deduction
• details of personal super contributions and any valid notice of intent
• information about your spouse and dependants where relevant to your return

If you are unsure whether a document matters, include it. Your accountant can decide whether it affects the return. It is easier to exclude an item after review than to discover it after lodgment.

Frequently asked questions