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.
The Australian Prudential Regulation Authority (APRA) has announced a significant policy change aimed at mitigating risks in the housing market. Effective February 2026, APRA will implement a cap restricting banks from issuing more than 20% of new home loans to borrowers with debt-to-income (DTI) ratios of six times or higher. This measure applies to both owner-occupier and investor loans, excluding new housing developments. - read more
In its December 2025 meeting, the Reserve Bank of Australia (RBA) decided to keep the official cash rate unchanged at 3.60%. This decision reflects the central bank's cautious approach in balancing inflation control with economic stability. - read more
In December 2025, the Australian government announced the implementation of a Domestic Gas Reservation Scheme, set to commence in 2027. This policy requires liquefied natural gas (LNG) exporters to allocate a portion of their production for the domestic market, aiming to enhance supply security and alleviate rising gas costs for households, businesses, and industrial users. - read more
Personal loans in Australia are a popular financial tool for managing various expenses, from consolidating debt to funding major purchases or covering emergency costs. - read more
Understanding interest rates is crucial when it comes to managing your personal loans effectively. Interest rates dictate the cost of borrowing and can significantly influence your financial health over time. - read more
Applying for a loan online has become a standard practice in today's digital world. It offers the convenience of applying from the comfort of your home, swift processing, and quick disbursements. However, the online loan application process is fraught with potential pitfalls that could hinder your chances of approval or lead to less favorable terms. - read more
