Every year, millions of Australians are eager to lodge their tax returns as soon as the new financial year begins on 1 July. While it may be tempting to lodge early and receive your refund sooner, the Australian Taxation Office (ATO) consistently advises taxpayers to wait until all income information has been reported and pre-filled before submitting their return.
Rushing to lodge your tax return can lead to errors, missing income, incorrect deductions, delays in processing, amended assessments and, in some cases, unwanted attention from the ATO.
With the ATO now receiving more real-time information from employers, banks, health insurers, government agencies, investment platforms and cryptocurrency exchanges than ever before, lodging too early has become increasingly risky.
Here’s why tax professionals and the ATO recommend waiting before lodging your 2025–26 tax return.
Why Does the ATO Recommend Waiting to Lodge Your Tax Return?
The ATO receives millions of pieces of information from third parties throughout July and August. While some information is available immediately after 30 June, much of it isn’t finalised until later in July or even August.
According to the ATO, taxpayers should wait until their income statement is marked “Tax Ready” and pre-fill information is complete before lodging.
The ATO receives data from:
- Employers (Single Touch Payroll)
- Banks and financial institutions
- Government agencies (Centrelink, Services Australia)
- Health insurers
- Superannuation funds
- Share registries
- Managed funds
- Investment platforms
- Cryptocurrency exchanges
- Dividend payment providers
If any of this information is missing when you lodge, your tax return may be incorrect.
- Your Employer May Not Have Finalised Your Income Statement
Under Single Touch Payroll (STP), employers report payroll information directly to the ATO throughout the year. However, this information is not necessarily finalised on 30 June.
Many employers spend the first few weeks of July completing:
- Payroll reconciliations
- Final leave adjustments
- Fringe benefits reporting
- Payroll corrections
- EOFY balancing
Until this process is complete, your income statement will display as “Not Tax Ready.”
Lodging before this occurs could mean:
- Incorrect salary figures
- Missing allowances
- Incorrect PAYG withholding
- Incorrect leave payments
- Bank Interest May Not Yet Be Reported
Banks and financial institutions submit annual interest information to the ATO after the financial year ends.
This includes:
- Savings account interest
- Offset account interest
- Term deposits
- Investment accounts
If you lodge before this information is received, your return may omit taxable interest income. The ATO can later amend your assessment once the information arrives.
- Dividend Income Often Arrives Weeks Later
If you own Australian shares, dividend information is usually supplied by share registries after year end.
This includes:
- Dividend payments
- Franking credits
- Foreign income
- Dividend reinvestment details
Many taxpayers accidentally forget small dividend payments, which the ATO later identifies through data matching.
- Managed Fund Tax Statements Usually Aren’t Ready Until August
This is one of the biggest reasons accountants recommend waiting.
Managed funds, ETFs and investment trusts often don’t issue annual tax statements until late July or August.
These tax statements contain:
- Capital gains
- Foreign income
- Franking credits
- Tax deferred amounts
- Trust distributions
Without the official annual tax statement, investors frequently report incorrect income.
- Private Health Insurance Information May Be Missing
Private health insurers report:
- Premiums paid
- Rebate entitlement
- Lifetime Health Cover loading
- Medicare Levy Surcharge information
Incorrect reporting may affect:
- Medicare Levy calculations
- Private Health Insurance rebate
- Tax payable
- Government Payment Information Can Take Time
If you received:
- Centrelink payments
- Parenting payments
- JobSeeker
- Youth Allowance
- Austudy
- Disaster payments
- Paid Parental Leave
the reporting information may not appear immediately in early July.
Waiting allows these payments to automatically pre-fill.
- Cryptocurrency Transactions Are Increasingly Data Matched
Many Australians mistakenly believe crypto transactions are anonymous.
The ATO now receives extensive transaction data from cryptocurrency exchanges.
This includes:
- Purchases
- Sales
- Swaps
- Staking rewards
- Interest
- Transfers
If you lodge before calculating your crypto gains correctly, you may need to amend your return later.
- Investment Property Information Needs Time to Prepare
Property investors often need several weeks to gather:
- Property manager annual statements
- Loan interest summaries
- Council rates
- Water rates
- Insurance
- Repairs
- Depreciation reports
Many accountants don’t receive complete rental information until August.
Waiting ensures deductions are claimed correctly.
- The ATO’s Pre-fill Data Significantly Reduces Errors
ATO pre-fill data automatically imports:
- Salary
- PAYG tax withheld
- Bank interest
- Dividends
- Government payments
- Health insurance
- Super contributions
- Managed fund distributions
- Investment income
Waiting until this information is available makes preparing an accurate return much easier.
- Lodging Too Early Can Delay Your Refund
Many people assume lodging early means receiving their refund earlier.
Ironically, the opposite often occurs.
If information is missing, the ATO may:
- Stop processing
- Request further information
- Amend your return
- Delay issuing your refund
Returns lodged after all information has been received often process more smoothly.
Common Mistakes Early Lodgers Make
Tax accountants regularly see taxpayers who:
- Forget bank interest
- Miss dividend income
- Forget government payments
- Miss managed fund distributions
- Incorrectly calculate rental deductions
- Omit cryptocurrency gains
- Claim deductions without records
- Use estimated rather than actual figures
These mistakes often require amended assessments later.
When Is the Best Time to Lodge?
While every taxpayer is different, many accountants recommend waiting until late July or early August.
By then:
- Most employers have finalised payroll.
- Banks have reported interest.
- Government payment information has been received.
- Health insurance data has been uploaded.
- Most dividend information has been reported.
- ATO pre-fill information is substantially complete.
Investors with managed funds may need to wait until late August or September depending on when annual tax statements are issued.
How an Accountant Can Help
Registered tax agents often identify deductions taxpayers overlook, while ensuring income is reported correctly using complete ATO data.
An accountant can assist with:
- Rental property deductions
- Capital gains tax
- Cryptocurrency reporting
- Business income
- Work-related expenses
- Motor vehicle claims
- Investment income
- Trust distributions
- Record keeping
- Tax planning strategies
Importantly, taxpayers who use a registered tax agent may also have access to extended lodgement deadlines, provided they are on the agent’s lodgement program before the standard due date.
Conclusion
While it can be tempting to lodge your tax return as soon as the financial year ends, waiting a few extra weeks can save significant time, reduce the likelihood of mistakes and help ensure your assessment is accurate.
The ATO continues to expand its data matching capabilities, receiving information from employers, banks, government agencies, investment providers and financial institutions. By waiting until your income statement is marked “Tax Ready” and your pre-fill information is complete, you reduce the risk of missing income, claiming incorrect amounts or requiring an amended assessment later.
If your tax affairs include investment properties, shares, managed funds, cryptocurrency or business income, seeking advice from a registered tax professional can provide additional peace of mind and help ensure you’re claiming all eligible deductions while meeting your tax obligations.
Frequently Asked Questions
Should I lodge my tax return on 1 July?
Generally, no. The ATO recommends waiting until your employer has finalised your income statement and your pre-fill information is complete.
What happens if I lodge too early?
You may omit income, report incorrect amounts, experience processing delays or need to lodge an amended tax return later.
How do I know when my tax information is ready?
Log in to myGov and check your income statement. Once it displays as “Tax Ready” and your pre-fill information is available, you are in a better position to lodge.
Why do accountants recommend waiting until August?
By August, most employers, banks, health insurers and government agencies have reported their information to the ATO, reducing the chance of errors.
Can I amend my tax return if I make a mistake?
Yes. If additional income or corrections become available after lodging, you can request an amendment. However, lodging correctly the first time is generally simpler and may avoid delays.
Will waiting delay my tax refund?
Not necessarily. In many cases, waiting until all information has been reported results in faster processing because the ATO is less likely to pause your return to verify missing information.
Does this advice apply to property investors and share investors?
Yes. Investors often need additional tax statements for rental properties, managed funds, dividends and capital gains, many of which are not available in early July.
Sources:
- ATO
How can we help?
If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au or arrange a time for a meeting so we can discuss your requirements in more detail.
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The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.
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