Don’t lodge your tax return just yet! This ATO warning could save you big
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The start of a new financial year often comes with questions, confusion—and for many, a rush to lodge their tax returns.
But could doing it too early end up costing you more than it’s worth?
One expert is urging Australians to hold off before hitting ‘submit’—and here’s why that advice might save you a serious headache.
The new financial year had only just begun, and already millions of Australians were eager to get their tax returns lodged in hopes of pocketing some extra cash. But financial experts urged caution—especially for those tempted to file on 1 July.
While the deadline for lodging tax returns without an accountant ran until 31 October, some Australians were jumping the gun. Hripsime Demirdjian, founder of Hive Wise, explained that rushing to lodge could lead to more than just a bit of paperwork drama.
‘People should hold off lodging on July 1 because there’s a high chance that their income that has been reported to the ATO will be incomplete on this date,’ she shared.
She noted that important financial data—from employers, banks, government bodies and managed funds—often hadn’t been finalised or uploaded to the Australian Taxation Office (ATO) system so early in the month.
In particular, employers had until 14 July to finalise payroll figures. That meant your salary might not appear correctly in the ATO’s prefilling report if you filed too early—leaving gaps that could trigger a review.
And it wasn’t just about missing figures. Lodging a tax return before all your income data had been marked as ‘tax ready’ risked more than simple errors. Demirdjian warned that it could cost you deductions and even flag your return for an audit.
‘Lodging too early could also result in your tax return being flagged for a review by the ATO, and potentially cause a delay in your tax return being processed,’ she said.
‘This is because the ATO would amend your tax return to include any income you might have missed.’
Indeed, the ATO had echoed that same advice. Last year alone, 142,000 taxpayers who submitted their returns in the first two weeks of July either needed to amend their claims or had them adjusted by the ATO due to errors.
So, when is the right time to file?
According to Demirdjian, mid-July typically fell within the ‘safe zone’—but that depended on how complex your finances were.
‘If you’re a salaried employee with no investments, this timeframe could apply to you,’ she said.
For those with more complicated financial affairs—think managed funds and investment portfolios—August or even September was a smarter bet.
‘In all cases, you want to make sure the data in your prefilling report is marked as “tax ready” before you lodge it, as this indicates the data is complete.’
While waiting could be frustrating, Demirdjian suggested putting the extra time to good use.
‘Gathering copies of receipts and invoices for work-related expenses is a good way to get ready for tax time to maximise your deductions where possible,’ she said.
She also pointed to the ATO’s occupation and industry-specific deduction guides as helpful tools for boosting returns.
And once you did file, how long would it take to get your refund?
The ATO said most online or tax agent-submitted returns were processed within two weeks. Paper lodgements took far longer—up to 10 weeks.
After processing, taxpayers would receive a notice of assessment. That document would confirm whether a refund was coming your way—or if you owed anything back.
A recent Finder survey found more than 10 million Aussies were expecting refunds this year, with the average amount forecast at $1,519.
But as tempting as that lump sum might be, experts advised patience. When it came to tax time, getting it right was more valuable than getting it fast.
Have you ever lodged your tax return too early and had to fix mistakes later on? Let us know your experience in the comments.
In a previous story, we looked at how the ATO is cracking down on income from side jobs this tax season—a timely reminder for those earning a little extra on the side.
For seniors supplementing their income through hobbies, rentals or freelance work, knowing what to declare can help avoid surprises at tax time.
If that sounds like you, it’s worth checking out before you lodge.
Read more: ATO to tax side jobs this coming tax season. Here's what you should declare soon
But could doing it too early end up costing you more than it’s worth?
One expert is urging Australians to hold off before hitting ‘submit’—and here’s why that advice might save you a serious headache.
The new financial year had only just begun, and already millions of Australians were eager to get their tax returns lodged in hopes of pocketing some extra cash. But financial experts urged caution—especially for those tempted to file on 1 July.
While the deadline for lodging tax returns without an accountant ran until 31 October, some Australians were jumping the gun. Hripsime Demirdjian, founder of Hive Wise, explained that rushing to lodge could lead to more than just a bit of paperwork drama.
‘People should hold off lodging on July 1 because there’s a high chance that their income that has been reported to the ATO will be incomplete on this date,’ she shared.
Don’t file on 1 July, experts warn. Image source: Pexels/Miles Burke
She noted that important financial data—from employers, banks, government bodies and managed funds—often hadn’t been finalised or uploaded to the Australian Taxation Office (ATO) system so early in the month.
In particular, employers had until 14 July to finalise payroll figures. That meant your salary might not appear correctly in the ATO’s prefilling report if you filed too early—leaving gaps that could trigger a review.
And it wasn’t just about missing figures. Lodging a tax return before all your income data had been marked as ‘tax ready’ risked more than simple errors. Demirdjian warned that it could cost you deductions and even flag your return for an audit.
‘Lodging too early could also result in your tax return being flagged for a review by the ATO, and potentially cause a delay in your tax return being processed,’ she said.
‘This is because the ATO would amend your tax return to include any income you might have missed.’
Indeed, the ATO had echoed that same advice. Last year alone, 142,000 taxpayers who submitted their returns in the first two weeks of July either needed to amend their claims or had them adjusted by the ATO due to errors.
So, when is the right time to file?
According to Demirdjian, mid-July typically fell within the ‘safe zone’—but that depended on how complex your finances were.
‘If you’re a salaried employee with no investments, this timeframe could apply to you,’ she said.
For those with more complicated financial affairs—think managed funds and investment portfolios—August or even September was a smarter bet.
‘In all cases, you want to make sure the data in your prefilling report is marked as “tax ready” before you lodge it, as this indicates the data is complete.’
While waiting could be frustrating, Demirdjian suggested putting the extra time to good use.
‘Gathering copies of receipts and invoices for work-related expenses is a good way to get ready for tax time to maximise your deductions where possible,’ she said.
She also pointed to the ATO’s occupation and industry-specific deduction guides as helpful tools for boosting returns.
And once you did file, how long would it take to get your refund?
The ATO said most online or tax agent-submitted returns were processed within two weeks. Paper lodgements took far longer—up to 10 weeks.
After processing, taxpayers would receive a notice of assessment. That document would confirm whether a refund was coming your way—or if you owed anything back.
A recent Finder survey found more than 10 million Aussies were expecting refunds this year, with the average amount forecast at $1,519.
But as tempting as that lump sum might be, experts advised patience. When it came to tax time, getting it right was more valuable than getting it fast.
Have you ever lodged your tax return too early and had to fix mistakes later on? Let us know your experience in the comments.
In a previous story, we looked at how the ATO is cracking down on income from side jobs this tax season—a timely reminder for those earning a little extra on the side.
For seniors supplementing their income through hobbies, rentals or freelance work, knowing what to declare can help avoid surprises at tax time.
If that sounds like you, it’s worth checking out before you lodge.
Read more: ATO to tax side jobs this coming tax season. Here's what you should declare soon
