Don't Rush Your Tax Return. Here's Why It Pays to Wait.
Lodging too early can cost you time — and create more work down the track.
We know the feeling — the new financial year ticks over and there's an urge to get your tax return done and out of the way. But according to the Australian Taxation Office (ATO), rushing to lodge early is one of the most common mistakes individual taxpayers make — and the numbers back that up.
In the 2024–25 financial year, the ATO's data matching program adjusted more than 595,000 individual tax returns due to missing income, overstated deductions, and other discrepancies. On top of that, the ATO directly corrected more than 140,000 individual returns where errors appeared in employment income, interest, dividends, welfare payments, Medicare levy exemptions, and private health insurance details.
Most strikingly? Taxpayers who lodged before their pre-fill information was available were more than twice as likely to have their return amended.
Why Does Early Lodgement Cause So Many Problems?
When you lodge in early July, your return is missing crucial pre-fill information that the ATO collects from employers, banks, government agencies, and insurers throughout the financial year. That data doesn't all arrive on 1 July — it trickles in over the course of the month.
The ATO is clear on this: the assumption that lodging first means a faster refund simply doesn’t hold up. Early lodgement increases the likelihood of missing information and errors — both of which slow down processing and often lead to follow-up contact from the ATO, amendments, and delays.
STP: Don't Lodge Until It Says "Tax Ready"
One of the most important pre-checks before lodging is your Single Touch Payroll (STP) Income Statement in myGov. Until your employer has finalised their STP lodgement and your income statement is marked as "Tax Ready," your salary and wages information may be incomplete.
Lodging before it's finalised risks missing or incorrect income figures — which will need to be corrected via an amendment later. If you have multiple employers, check each income statement individually.
What About Investments and Managed Funds?
ATO pre-fill reports may not include all of your investment and managed fund information in July. Annual investment summaries and managed fund tax statements are often not issued until late July or August — so even if your STP is finalised, you may still be waiting on income and distribution data from shares, ETFs, managed funds, or other investment accounts.
Lodging without this information risks underreporting income — which the ATO's data matching will detect, resulting in a letter from the ATO and the need to lodge an amendment.
What Can You Do in the Meantime?
The ATO suggests using the time before pre-fill is available to get organised:
- Download the ATO app to track your employment income, store expense records, and receive account notifications.
- Check that your personal details and bank account are up to date in myGov.
- Review the ATO's occupation and industry guides to understand what deductions you may be eligible to claim.
- Start gathering your records — receipts, logbooks, work-from-home records, and any other supporting documentation.
Our advice? Aim to lodge in late July or August, once all your pre-fill is confirmed and your annual investment summaries have arrived. Getting it right the first time is always better than dealing with an amendment — and far less stressful.
Need Help With Your Tax Return?
At Ascent Accountants, we'll make sure your return is lodged accurately, on time, and with every deduction you're entitled to. We'll check your pre-fill is complete, your STP is finalised, and your investment information is all accounted for — so nothing slips through the cracks.
Get in touch with our team today to get started.
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