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Over 170,000 taxpayers have made a dash to lodge their tax returns on 1 July as the ATO warns of common mistakes that could see refunds adjusted.
170,000 taxpayers rush to lodge on 1 July
08 July 2021
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7 minute read
The ATO has revealed that 172,000 individual tax lodgements were received on 1 July, just under a quarter of the 740,000 lodgements it received in its “biggest 1 July ever” last year.
Discounting the unique circumstances that led to a surge in 2020, this year’s figures are still an increase from the 100,000 lodgements on 1 July 2019, and come despite the ATO stating that it would only begin full processing of tax returns from 7 July this year.
Tax refunds are only expected to flow from 16 July.
The rush to lodge early also comes despite the fact that the ATO has given employers until the end of July to complete their Single Touch Payroll finalisation declaration in light of the COVID-19 pandemic.
ATO assistant commissioner Tim Loh said lodging before income statements are finalised was an easy way to run into mistakes that could slow down refunds.
“We understand the rush to get a refund as fast as possible, but racing to lodge your return can often lead to easily avoidable mistakes,” said Mr Loh.
“Waiting until the end of July to lodge allows the ATO to add information into your tax return from employers, banks, private health insurers and government agencies into your tax return. Agents can access this information, too.
“By allowing more time, your return will be easy, speedy and, importantly, more accurate. By avoiding mistakes, we’ll be able to process your refund faster.”
According to the ATO, more than 230,000 returns are adjusted each year using third-party data, with individuals commonly failing to include all their income, including interest, dividends and rental income.
The ATO’s data-matching programs are now in full swing, with the Tax Office having oversight over cryptocurrency transactions, gig economy jobs, share transactions, and property and rent data.
The Tax Office has also warned taxpayers not to “copy and paste” deductions from previous years, with its data analytics to focus on unusually high claims this year.
“Four out of five people get refunds at tax time. While we usually get these out in under two weeks, it may take longer if we need to address any mistakes and potentially adjust your return,” Mr Loh said.
“To avoid errors and delays, we ask that you double check all the information in your return before hitting submit.”
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- The future is coming. Individuals will not need to lodge returns. The ATO will issue a notice on 1 July or maybe 7 July saying this is your refund. It will be in your bank in 3 days time. If you disagree please prepare an amended return and lodge it ASAP.0
- So much for simplifying group certificates. At least before, many employees received their group certificates before the end of the year and were able to lodge a tax return as soon as the software was available, even though employers had until 15 August to send the ATO their copy of the group cert. the refunds were issued efficiently and those 170,000 would have the money in their bank accounts by now. So STP was supposed to help us? All it seems to have done is provide the ATO with a mountain of information at the cost of business, slowed the payment to employees for tax refunds to the tune of many millions of dollars. Most of my larger clients would have had the group certificates done and issued before the latest lock down, now these wont be issued until 31 July. Not that impressive.1
- Employers can still finalise 'group certificates' before the end of the Financial year - STP doesn't stop that. And the information goes to the ATO within 24 hours from every software I've used.0
- Not sure how this is even possible.
How does a MyTax Return prefill correctly if employer STP statements have not been finalised? Wouldn't it come up with an error along the lines of "prefill data not yet available..."?0 - The simple solution is not to allow processing and lodgments for the 2020-2021 ITRs until after the 31 July 2021.0
- Some people are barely hanging on and you want them to wait an extra 4 weeks before lodging and then another 2 or more weeks before they get their return.0
- It is the same EVERY year.
There is a very simple solution.
The year end is still 30 June
July is allowed for processing
and tell the country that everyone has to wait until 1 AUGUST to Lodge their tax returns.
This would allow for all the prefill data to be entered and balanced before the rush2- mate, Ill give my clients your mobile number and they can all ring you on July 1...0
- It really is a simple solution.. but one that's best handed down by the ATO, not by tax agents. We're made out to look like the bad guys if we delay.0
