Why you should NEVER file your tax return before July 14

Australians are being urged not to rush their tax returns if they want to avoid problems later.

Tax expert Hripsime Demirdjian, founder of Australian accounting firm Hive Wise, warned people not to file their tax returns immediately after July 1.

Ms Demirdjian said in a TikTok video uploaded last week that employers have until July 14 to provide key payslip information to the Australian Taxation Office (ATO).

People who file their tax return before that date may be under-declaring their income, as the income does not match the amount their employer will later report to the Tax Authorities.

“If you file your tax return on July 1, you are basing it on incomplete and unfinalized pay stub data,” Ms. Demirdjian said.

This could result in a tax return being revised, which could then result in the person filing the tax return owing money to the ATO.

Ms Demirdjian also warned people with investments tied up in accounts such as managed funds to wait even longer.

“The information on those investments for the fiscal year is only available in late August and September… sometimes even later,” she said.

She also dispelled the common misconception that people get a better return if they file their tax returns early.

Large deductions, such as work-related expenses and expenses not claimed by the employer, can increase the amount people get back.

“If you don’t have either of the above, you’re unlikely to get a large refund,” Ms. Demirdjian said. news.com.au

Ms Demirdjian also warned that the ATO has become better at identifying inconsistencies in financial information provided by an employee and their employer.

If you pay late or fail to account for all income and expenses, this can result in significant additional costs.

“To make matters worse, if the change occurs after your tax return deadline, you will also end up paying interest on this late payment,” Ms. Demirdjian said.

‘The ATO is currently charging a staggering interest rate of 11.36 percent’.

ATO Assistant Commissioner Rob Thompson said the tax office was closely monitoring the cost of working from home.

Ms. Demirdjian also addressed a common misconception that people get a better return if they file their tax returns early (stock image)

According to Mr. Thompson, some people were reporting expenses twice on their tax returns, which he said resulted in incorrect deductions appearing on their forms.

“One of the things we’re focusing on this year is making sure that people aren’t paying twice, so that they’re not declaring things like their internet or phone costs separately if they’re using that flat rate method,” he told the ABC.

“People need to keep a record of all the hours they’ve worked from home throughout the year. It could be a timesheet… whatever the person wants to work for them.”

Nearly nine million Australians claimed about $24.5 billion in work-related expenses last year, with claims related to home working costs.

The average work-from-home expense claim was approximately $3,000.