After last year’s record-breaking amount of lodgements received by the ATO on 1 July, the ATO stated they will not begin the full processing of 2021 tax returns until 7 July. Despite this announcement, 172,000 individual tax lodgements were received on the first day of the new financial year 2021. If we ignore the unique situation last year that led to a massive spike, this number is still an increase from the 100,000 lodgements on 1 July 2019. Tax refunds are only expected to flow from 16 July.
The scramble to lodge early this year comes even though 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. If you still require assistance with any Single touch payroll issues or questions, please call the team at MKS Group on 9374 8400. We are always here and ready to assist.
ATO assistant commissioner Tim Loh said that lodging before income statements are finalised is 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”
Mr Loh also stated that being patient and waiting to lodge towards the end of July 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.” Don’t get caught in the trap where something is missed and then the ATO flag you or flog you for making a mistake – as innocent as it may be.
Every year more than 230,000 returns are adjusted using third-party data, with individuals commonly failing to include all their income, including interest, dividends and rental income. “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.
The ATO have also implemented data-matching programs which are over seeing cryptocurrency transactions, gig economy jobs, share transactions and property and rent data. Not much is going un-noticed any more.
To ensure your tax return is completed correctly call up the team at MKS Group and we would be happy to assist 9374 8400. Our social media channels are also the first place we post any news or events, so stay up to date with us by clicking on links below and following us. If you are not a part of our Facebook Community, get on to it – that is the first place you will find the updates.
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