The best time to lodge your tax return

There are over 13.5 million taxpayers in Australia, many of whom will be eager to lodge their tax returns as quickly as possible once the few financial year begins to get their hands on any refund their owed.

After all, the average Australian taxpayer is expecting a refund in the vicinity of $1288 on their 2024 tax return according to research from comparison website Finder.

Finder also found that given the financial pressures many households are dealing with, a quarter of people viewed a potential refund as being very important to their financial health.

As tempting as the possibility of any tax refund may be though, the reality is that a rushed return could end up delaying the process. Here's why it's worth waiting before getting started.

When can you lodge your 2024 tax return?

If you're preparing your tax return yourself you'll have from July 1 to October 31 to lodge it. If you're using a registered tax agent you'll also need to have engaged their services by October 31, though because agents have special deadlines, they'll be able to lodge the return at a later date.

Just because you can lodge your 2024 tax return in early July doesn't mean you should though. In fact, the Australian Taxation Office (ATO) recommends against it.

"We know some prefer to tick their tax return off the to-do list early and not have to think about it for another 12 months, but the best way to ensure you get it right is to wait for just a few weeks to lodge," says ATO assistant commissioner, Rob Thomson.

The first reason for that is because employers have a few weeks to finalise the data needed for your income statement before it's marked as 'tax ready'.

Thomson says that it can also take time for other sources of income to be pre-filled, which some people end up missing in their returns.

"We see lots of mistakes in July where people have forgotten to include interest from banks, dividend income, payments from other government agencies and private health insurers. By lodging in early July, you are doubling your chances of having your tax return flagged as incorrect by the ATO."

What if you make a mistake on your tax return?

The wait for your income statement and other incomes sources to come in is one reasons why it's not worth rushing your return, but so is the potential to make mistakes.

While making an error on your tax return won't be the end of the world if you make the effort to correct it, it is likely to delay your return and any refund you may be eligible for.

So what's the process involved? Individuals who make a mistake, forget to include something on their return or have a change in circumstances after they've lodged it, will need to make an amendment.

"You can request an amendment to your income tax return using the ATO's online services, regardless of how you lodged, and it takes around 20 days to process," explains Robyn Jacobson, senior advocate at The Tax Institute.

"If your return is particularly complex or you're not confident requesting the amendment, we recommend seeking the assistance of a registered tax agent, particularly one with a Chartered Tax Adviser (CTA) designation."

Will the stage three tax cuts impact returns?

Last year many taxpayers ended up disappointed by the lower refunds they received compared to previous years. In many cases this was down to the fact that the low and middle income tax offset (LMITO) hadn't been extended by the government.

But with the revamped stage three tax cuts set to come in from the start of the new financial year next month, will taxpayers see any benefit from those in their returns?

"The stage three tax cuts come into effect from July 1, 2024, so they won't impact tax positions or income tax assessments for the 2023-24 income year. We'll have to wait until 2024-25 for those," Jacobson explains.

"Salary and wage earners will see an increase from their first take-home pay on or after July 1, 2024.

"Other taxpayers who pay tax in instalments will also benefit from the tax cuts but their instalments will not be adjusted. Any overpayment of tax will be refunded after they lodge their 2025 tax return."

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