Yahoo Finance Tax warning: Aussies told to avoid this ‘costly’ mistake
Aussies are being told not to lodge their tax returns too early or they could get into hot water with the tax office and delay their refund.
There are just a few weeks to go until the end of the tax year. Aussies are being warned not to rush into lodging their tax returns in early July or they could risk making some very expensive mistakes.
The average Aussie is expecting to receive a refund of around $1,288 this year. So, it’s no wonder that many Aussies are eager to get things done as soon as possible and receive a welcome cash boost.
But CPA Australia spokesperson Gavan Ord said it’s actually a “misconception” that lodging early means you’ll receive your refund first.
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“It’s not as simple as that,” Ord said. “In fact, if the ATO asks you for additional information or you get things wrong, it will hold up your refund, or you could have to essentially re-lodge your return altogether.”
A lot of information from employers, banks, government agencies and health funds will be pre-filled by the ATO in your tax return. This is typically done by the end of July but can take until mid-August, so it’s recommended to wait until this is finalised before you lodge.
“Don’t be the first person at your accountant’s door, because chances are you won’t have all of the information you need to properly do your tax return, increasing the risk of making costly mistakes,” Ord said.
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You can check if your income statement from your employer is marked as “tax ready” and your pre-filled information is available in myTax. If it’s not, it could include unfinalised data and you may need to amend your tax return or end up paying additional tax.
Don’t forget to claim work-related expenses
Taxpayers are also being reminded to claim all the work-related expenses they are entitled to. This typically includes things like uniforms and protective items, work phone and internet costs, subscriptions and union fees, and travel expenses between worksites or client locations.
“Claiming all of your work-related deductions could considerably increase your refund so it pays to be patient and get it right,” Ord said.
If you work from home, you may also be entitled to claim some deductions but you’ll need to have receipts and a work diary to back this up.
You can read our work from home guide here, along with H&R Block’s Mark Chapman’s 10 things you should be doing now to maximise your tax return.
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