Big warning for Aussies ahead of tax time

Aussie taxpayers have been warned about one common mistake that could cost them ahead of July 1.

Aussie taxpayers are being warned about the hidden pitfalls of rushing to lodge their tax return and the risk of making costly mistakes.

ATO assistant commissioner Rob Thomson on Monday reminded taxpayers ahead of July 1 that “tax time is not a race”.

Mr Thompson said taxpayers had a “much higher chance” of making a mistake or missing crucial information if they lodged in early July.

“We see lots of mistakes where people who rush to lodge early have forgotten to include interest from banks, dividend income, payments from government agencies and private health insurance details,” Mr Thomson said.

According to the ATO, information from employers, banks, government agencies and health funds is automatically loaded into the system from late July.

Aussie taxpayers have been warned about a common trap ahead of July 1.

“We know some prefer to tick their tax return off the to-do list early and not think about it for another 12 months, but the best way to get it right is to wait just a few weeks to lodge,” Mr Thomson said.

“In the meantime, you can get a head start on your tax obligations by gathering all necessary records, ensuring your details are up to date and reviewing the occupation guides on the ATO website to check you’re claiming what you’re entitled to.”

Earlier this month, CPA Australia spokesperson Gavan Ord said cost-of-living pressures meant some people were eager to lodge their returns and receive a refund.

However, Mr Ord advised people to wait for the ATO to pre-fill their tax information.

CPA Australia’s Gavan Ord says it’s best to wait to lodge your tax return. Picture: Supplied.

“Many who lodge in early July end up having to amend their returns later so it’s best to wait. It’ll save you in the long run,” Mr Ord said.

“There’s a misconception that lodging early means you’ll receive your refund first, but it’s not as simple as that.

“In fact, if the ATO asks you for additional information or you get things wrong, it may hold up your refund or you could have to essentially re-lodge your return altogether.”