You can lodge your tax return from 1 July. However, for most Australians, doing it too early is one of the quickest ways to end up with the wrong refund, delays and avoidable ATO attention.

Tax time is not a race

Once 1 July rolls around, it can feel like a race to be first in line for a refund. However, there is no prize for lodging on day one and there are plenty of ways it can backfire.

When you lodge, you’re signing a legal declaration that your return is ‘true and correct’. If key information isn’t ready yet, it’s very hard for that statement to be accurate.

That’s where people are caught. Not because they’re dodgy – because they’re too fast.

For most individuals, a more prudent approach is to wait until all relevant information is available, rather than treating tax time as a rush to be first in line.

Your information isn’t ready in early July

In the first few weeks of July, a lot of the data the ATO uses to pre-fill your return is still in transit. Lodging before that information has arrived means you’re effectively guessing and hoping the numbers line up later.

Here’s what’s usually still catching up in early July:

Employer income
Most employers using Single Touch Payroll have until mid July to finalise your income statement for the year. Until it shows as tax ready in myGov, your wages and tax withheld can still change. If you lodge before it is finalised and your employer later updates their STP data, the ATO can amend your assessment – and what looked like a tidy refund can quickly turn into an unexpected tax payable.

Bank interest and government payments
Banks, financial institutions and government agencies report your interest and taxable payments directly to the ATO, however many of these year end figures are not final until sometime in July. Lodging before that information has flowed through means it is easy to miss income and the ATO’s data matching systems are designed to pick that up. This often results in an amended assessment rather than a quiet overlook.

Private health and investments
Health funds and investment platforms need time after 30 June to issue annual statements covering private health insurance offsets, the Medicare levy surcharge, dividends, managed funds and capital gains. If you hold investments in shares, ETFs or property and lodge before you have all of those statements, you are effectively betting on amendments later – and they are rarely in your favour.

The bottom line
Waiting a few weeks means your return is based on final numbers, not best guesses.

Lodging early can delay your refund

A big reason people lodge quickly is the hope of receiving their refund sooner. Ironically, lodging too early can have the opposite effect.

If your return is missing income or doesn’t match information the ATO receives from employers, banks or other organisations, your return can be flagged and held for review, or your assessment can be amended.

All of this takes time. By the time everything is cleaned up, you may have waited longer than if you’d simply lodged once, accurately, in late July or August.

You could miss out on legitimate deductions

Lodging early is not just risky for your income reporting, it can also cost you money in missed deductions. When you rush, your focus is usually on finishing the return, not on making sure you claim everything you are entitled to.

Common issues include not having all receipts or records for work related expenses, donations, investment costs or rental property outgoings, and missing offsets linked to private health insurance or dependants because the relevant statements have not yet arrived.

A tax return lodged at lightning speed is very often a tax return that is light on deductions. That could mean paying more tax than you need to.

So when should you lodge?

There’s no single date that suits everyone, although a sensible guide is:

• wait until your income statement is marked ‘tax ready’ in myGov,
• check that pre-filled information looks complete and matches your records, and
• make sure you have all relevant statements and receipts for your income and deductions.

For many people, that usually means lodging from late July onwards. If you have more complex investments or multiple rental properties, August or early September is often safer.

If you work with a registered tax agent, you’ll generally have longer to lodge. That means there’s no need to rush in the first week of July.

Need help with timing?
If you’re unsure whether your information is complete or you are looking to avoid amendments and missed deductions, now is a good time to talk to our team.

We can review your pre-filled data, check what’s still outstanding and help you lodge once – and confidently. We look forward to helping you with your return this year.

Reach out if you have any questions.

Whether you are an individual or a business owner, use July wisely. Reach out for advice before you lodge, so your return works for you.