As the cost of living continues to rise, it’s no surprise that many Australians are eager to lodge their tax returns as soon as the financial year ends. With nearly half the country expecting a refund, it’s tempting to file early and pocket that cash.
But the Australian Taxation Office (ATO) has issued a clear warning: lodging your tax return too early increases the risk of errors — which could delay your refund or even trigger an audit. In fact, early lodgers are twice as likely to make mistakes, according to the ATO.
So before you hit submit on 1 July, here’s what you need to know — and why waiting a few extra weeks could save you time, money, and stress.
ATO: The Risk of Lodging Too Early
In 2024, over 140,000 Australians who lodged their returns in the first two weeks of July either had to make amendments or had their returns corrected by the ATO due to missing or inaccurate information.
Why?
Because many key pieces of data — such as salary and wage information, bank interest, dividends, and health insurance details — aren’t finalised and uploaded until mid-to-late July. The ATO’s pre-fill system, used in both myTax and by registered tax agents, draws information from:
- Employers (who have until 14 July to mark income statements as “tax ready”)
- Banks and financial institutions
- Health funds
- Government agencies (e.g. Centrelink)
Lodging before all this data is available can result in incomplete returns — and that’s where the trouble starts.
The ATO’s Official Advice
According to the ATO’s website:
“We recommend you wait until late July before lodging your return. Most information from employers, banks, health funds and government agencies will be automatically pre-filled by then.”
— ATO.gov.au – Tax Time 2025
What Happens If You Lodge Too Early?
If you file before your income statement is marked as “tax ready,” or before banks and insurers report their data, you risk:
- Missing income (e.g. from a second job or bank interest)
- Incorrect deductions
- Delays in your refund
- ATO amendments or audits
Even worse — if the ATO identifies income that wasn’t declared, you could face penalties or interest charges.
When Should You Lodge Instead?
The third or fourth week of July is typically the safest time to lodge. By then, most pre-fill data is available, and the ATO has started processing refunds.
But if you expect to owe tax, it may benefit you to hold off until later in the year. If you lodge close to the 31 October deadline (or 15 May if you use a tax agent), your payment won’t be due until your return is processed — giving you more time to manage your cash flow.
Tips for a Smooth Tax Return in 2025
Wait until late July
Ensure your employer has finalised your income statement (check that it’s marked “tax ready” in myGov).
Check your personal details
Make sure your name, address and bank account details are correct with the ATO to avoid refund delays.
Use your own records
Pre-fill is helpful, but don’t rely on it completely. Cross-check with your own payslips, receipts, and statements.
Review ATO occupation guides
Use the ATO occupation and industry guides to ensure you’re claiming legitimate deductions.
Keep supporting documents
Hold onto receipts, work diaries, and other evidence for at least five years in case of audit.
Frequently Asked Questions (FAQs)
Q: What is “pre-fill” and why does it matter?
A: Pre-fill is data the ATO automatically receives from employers, banks, health funds, and other sources. Waiting until late July ensures this data is complete, reducing the risk of mistakes.
Q: Can I still lodge early if I really want to?
A: Yes, but the ATO advises against it. If you lodge before your data is finalised, you may need to amend your return later, which can delay your refund.
Q: What if I realise I made a mistake after lodging?
A: You can amend your return via myGov or through your registered tax agent once the ATO processes your original lodgement.
Q: When does the ATO start issuing refunds?
A: Refunds typically start being processed from the second week of July, but early lodgements may face delays if information is missing.
Q: What’s the deadline to lodge my return?
A: If you lodge your own return, the deadline is 31 October 2025. If you use a registered tax agent, you may have until 15 May 2026.
Conclusion: Don’t Rush — Lodge Smart
Yes, it’s tempting to lodge your tax return early and chase that refund — especially when every dollar counts. But lodging too soon can lead to costly mistakes, amended returns, and delayed payments. The ATO’s clear advice? Wait until late July, when your financial data is more likely to be accurate and complete.
Whether you’re filing yourself or using a tax agent, taking the time to prepare properly ensures your return is right the first time — and keeps your refund flowing without interruption.
If you’re unsure about anything, speak with a registered tax agent or visit ato.gov.au for the latest updates and tools.
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