The green light is on for tax returns. One thing won't get your refund faster

Many Australians can now lodge their tax return, but the ATO says a common move to speed up a refund won't make a difference.

Most taxpayers with straightforward tax affairs can now begin lodging their tax returns, the ATO has said. Source: Getty / Andrzej Rostek

IN BRIEF

• The ATO has loaded a vast amount of data into its systems to make lodging tax returns easier and more accurate.
• The ATO uses data matching to detect incorrect claims and may delay refunds while suspicious returns are checked.

The Australian Taxation Office (ATO) says taxpayers with straightforward tax affairs can now begin lodging their tax returns, with most income statements and pre-fill information now available.

More than 100 million pieces of data from employers, banks, private health insurers, share registries and government agencies have been loaded into the ATO's systems to help people lodge more accurately and with less effort.

ATO assistant commissioner Anita Challen released a statement saying that most income statements and pre-fill information is now available.

"If you're self-lodging, before you hit submit, take a few extra minutes to check your details to avoid delays and mistakes," she said.

The ATO is also expanding its pre-fill services this year to include income reported through the Taxable Payment Annual Report.

From late August, contractors in some industries — including construction, cleaning, courier services, information technology, road freight and security — may see that income automatically added to their returns.

Common mistakes taxpayers should avoid

As tax time gets underway, the ATO is warning Australians against overclaiming deductions or failing to declare all sources of income.

That includes earnings from side hustles, cash jobs, rental properties and online content creation.

The agency says it uses sophisticated data-matching systems to detect suspicious claims and may delay refunds while returns are investigated.

Taxpayers are also being urged not to simply copy deductions from previous years if their work or circumstances have changed.

The ATO is reminding Australians that the proposed $1,000 standard work-related deduction does not apply this tax time and cannot be claimed until the 2027 tax year.

It is also warning people not to rely on tax advice from artificial intelligence platforms, social media "finfluencers", family or friends without checking official guidance or speaking to a registered tax professional.

Before lodging, the ATO recommends taxpayers check their personal details, bank account and superannuation information are up to date and ensure all pre-filled information is accurate.

It also encourages people to keep records of deductions, use the ATO app to track their return and remain alert to scams.

The tax office says it will never send unsolicited messages containing links asking people to log in or provide personal information.

Most tax returns are processed within 12 business days, according to the ATO, which says calling the agency will not speed up the process.

People lodging their own tax return have until 31 October, while those using a registered tax agent may have longer, provided they are on their agent's books before that date.

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