Why You SHOULDN'T Rush to File Your Tax Return on July 1
As tempting as it is, taxpayers should avoid rushing to file their tax return when the financial year ends on 30 June.
This year many people will be reliant on refunds after being affected by the COVID-19 pandemic. However, rushing in to lodge your return on 1 July could mean missing out on part of your end-of-year refund.
You should consider:
- Even if you get your return in early – the ATO generally take a couple of weeks to start processing these lodgements.
- With Single Touch Payroll coming into play this year, employers with 20 or more employees do not have to finalise data until the 14 July and for employers with 19 or less employees this data does not have to be finalised until 31 July. This means a lot of information relevant to preparing a tax return will not be available until mid to late July.
So if you rush in within the first few days, there is the risk of omitting information relevant to your tax return. If you fail to declare all of your income, it can lead to an audit or you may have to pay your tax agent to amend your tax return to include any income or expenses you did not include originally.
We recommend you wait until at least 14 July to make an appointment to lodge your return.
In the meantime - start gathering the information you will need on things such as investment properties, rental income, work-related expenses and anything else you plan to claim and start gathering tax invoices.
If you would like to discuss this please contact our office.