Perth, June 22: Australians eager to lodge their tax returns as soon as the financial year ends are being urged to slow down, with the Australian Taxation Office (ATO) revealing that hundreds of thousands of returns required corrections last year.
New figures from the ATO show more than 595,000 individual tax returns were adjusted through its data-matching program during the 2024-25 financial year due to missing income, overstated deductions, tax credit issues and other discrepancies.
In addition, the ATO corrected more than 140,000 tax returns where inconsistencies were detected in employment income, bank interest, dividends, government payments, Medicare levy exemptions and private health insurance information.
The figures come as the ATO reminds taxpayers that rushing to lodge their returns before pre-filled information is available can lead to costly mistakes and delays.
According to the ATO, taxpayers who lodged before pre-fill information was available were more than twice as likely to have their returns amended.
ATO Assistant Commissioner Anita Challen said many Australians mistakenly believe lodging early will result in a faster refund.
“While the ATO welcomes taxpayers’ enthusiasm at the start of tax time, the numbers don’t lie – lodging too early creates more work for taxpayers,” Challen said.
“Many taxpayers assume getting in first means getting a faster refund, but that is not always the case.”
The ATO is encouraging taxpayers to wait until late July before lodging their returns, as this is when most pre-fill information becomes available, including wages, bank interest, government payments and private health insurance details.
“The ATO collects and pre-fills a wide range of information to make tax time easier,” Challen said.
“Taxpayers simply need to check the information, add in any missing information, including cash income, and eligible deductions.”
The tax office is encouraging Australians to use the lead-up to tax time to organise records, update personal details and review deduction guidance relevant to their occupation.
With more than 735,000 tax returns requiring either adjustments or corrections during the last financial year, the ATO says taking a little extra time before lodging could save taxpayers from unnecessary amendments and delays.
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