Aussies urged to do one thing to boost chances of surviving tax time crunch

The ATO is warning that one simple thing could lead to delays in getting this year’s tax refund or even having to redo paperwork to get your return.

Australians who are too eager to fill out their tax return could face delays and run the risk of being asked follow up questions, according to a fresh warning from the tax office.

More than 14 million people are expected to lodge an annual income tax return with the Australian Taxation Office (ATO) come July 1.

But ATO assistant commissioner Tim Loh has asked Australians to consider waiting a couple of weeks until the pre-filled information from employers, banks and health insurers is added to the online system.

“While you can lodge from July 1, there is a much higher chance that your return will be missing important information if you lodge your return before late July,” he said.

“If you forget to include everything, it will slow down the progress of your return, and you’ll likely end up with more work to do down the track,’ Mr Loh said.

The ATO says Australians should consider waiting a couple of weeks before filling out their tax return. Picture: Supplied

Taxpayers who jump online before their income statement is marked as ‘tax ready’ and their other pre-fill information has been received could experience processing delays and follow-up questions from the ATO.

Mr Loh said waiting until mid-July had the added benefit of having the tax office of doing some of the work for you while bringing down the chances of there being errors in your return.

“No one likes life admin, and we want to help save you some, where we can. If you have simple affairs, by waiting a few more weeks until all your information is pre-filled into your tax return, you’ll save yourself extra work and worry by getting it right the first time,” he said.

From late July, most information from employers, banks, government agencies and health funds will be automatically loaded into tax return, regardless of if you’re using a registered tax agent or lodge your own return.

However, the ATO is expecting fewer people to receive a refund, or many a smaller refunds than they had hoped for. It’s also warned more Australians may have debts to manage.

Mr Loh said people with unexpected debts should contact the ATO. Picture: Supplied

Mr Loh said taxpayers with unexpected debts should reach out to either the ATO or a registered tax agent as early as possible to find a solution.

“If you receive a debt this year that you weren’t expecting or you’re getting behind with your tax, you may be able to set up your own payment plan on the ATO website,” he said.

It comes as millions of Australians who benefited from the low-and-middle-income tax offset are preparing for a jump in their tax bill after the government chose not to extend the $1500 break.