AUSTRALIANS rushing to lodge their tax returns early could be causing themselves more delays, with new data showing hundreds of thousands of claims have needed adjustment last year.
The Australian Taxation Office has warned taxpayers lodging before all their information is available can lead to missing details, incorrect claims, and the need for amendments.
More than 595,000 tax returns were adjusted during the 2024-25 financial year after the ATO identified issues including missing income, overstated deductions, incorrect claims, and tax credits.
The ATO also corrected more than 140,000 returns where discrepancies were found in employment income, interest, dividends, government payments, Medicare levy exemptions, and private health insurance information.
Assistant Tax Commissioner Anita Challen said people should resist the urge to lodge as soon as the financial year ends.
“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,” she said.
“Many taxpayers assume getting in first means getting a faster refund, but that is not always the case.
“Early lodgement increases the likelihood of missing information and mistakes being made, which can delay processing and require amendments.”
Ms Challen said waiting until July gives taxpayers the best chance of having most information automatically included in their return.
Pre-filled information can include wages, bank interest, government payments and private health insurance details.
“It’s worth taking the time to get it right the first time,”she said.