Avoid Costly Tax Mistakes: Patience Pays Off During Tax Season
Avoid Costly Tax Mistakes: Patience Pays Off During Tax Season
1
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
As tax season approaches, Australians are being urged to exercise caution to avoid hidden pitfalls that could lead to expensive errors.
In a recent announcement, ATO Assistant Commissioner Rob Thomson emphasized to taxpayers that "tax time is not a race." His message arrives just ahead of the new fiscal year, commencing on July 1.
Mr. Thomson noted that taxpayers are significantly more likely to make mistakes or overlook critical aspects if they rush to submit their tax returns in early July.
"We witness numerous errors when individuals rush to file early, often forgetting to report interest from banks, dividend income, government agency payments, and private health insurance details," Mr. Thomson stated.
The ATO has indicated that essential information from employers, financial institutions, government bodies, and health funds is automatically added to the system towards the end of July.
"We understand that some prefer to quickly check off their tax return from their to-do list, not wanting to ponder it for another year. However, waiting a few weeks to lodge is the best strategy to ensure accuracy," Mr. Thomson advised.
"Meanwhile, you can prepare by collecting all necessary records, updating your personal information, and reviewing occupation-specific guides provided on the ATO website to ensure you claim entitled deductions," he added.
Earlier in the month, Gavan Ord, a spokesperson for CPA Australia, pointed out that the current cost-of-living pressures might prompt individuals to file their returns quickly to receive a refund sooner. Nonetheless, he urged people to wait for the ATO to pre-fill their tax information.
"Many of those who file in early July end up needing to revise their returns later, so it's prudent to wait. This approach will save you time and potential hassle in the future," Mr. Ord recommended.
"There's a false belief that filing early ensures a quicker refund, but the reality is more complicated than that.
"In fact, if the ATO requests additional information or if you make an error, it might delay your refund or necessitate a complete re-submission of your return," Mr. Ord explained.
Published:Tuesday, 25th Jun 2024 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
Investors seeking exposure to Australia's leading companies have a standout option in 2026. BlackRock's iShares S&P/ASX 20 ETF has been recognised as the Best Australian Shares Exchange Traded Fund (ETF) by Money magazine's 2026 Best of the Best awards. - read more
As Australia enters 2026, the property market continues to exhibit resilience, with certain states poised for notable growth. Recent research from property analytics firm Cotality indicates that 87% of surveyed real estate and finance professionals anticipate home prices to rise over the year, with nearly half expecting growth exceeding 5%. - read more
As 2026 unfolds, Australians are set to experience several significant financial reforms that will impact various aspects of their personal and business finances. Staying informed about these changes is crucial for effective financial planning and decision-making. - read more
Applying for a loan online streamlines the traditional borrowing process, offering a convenient and fast route to financial assistance. With the advent of technology, borrowers can now complete the entire loan application process from the comfort of their own homes. This digital evolution brings with it a series of steps that, when executed correctly, can result in swift loan approvals. - read more
Loan refinancing involves replacing an existing loan with a new one, usually to achieve better terms. It allows borrowers to access new loan agreements that could potentially offer lower interest rates, better repayment conditions, or additional financial benefits. - read more
When you embark on the journey of securing a loan, one pivotal factor that looms large in the eyes of lenders is your debt-to-income ratio, commonly known as DTI. This crucial metric measures the chunk of your monthly income that goes towards paying debts, and it serves as a barometer for financial stability. A lower DTI can swing the doors wide open to favorable loan terms, while a higher one might signal red flags for potential lenders. - read more
