Friday 1 July 2022 09:42 AM Why lodging your tax return during the next fortnight could get you in big ... trends now

Friday 1 July 2022 09:42 AM Why lodging your tax return during the next fortnight could get you in big ... trends now
Friday 1 July 2022 09:42 AM Why lodging your tax return during the next fortnight could get you in big ... trends now

Friday 1 July 2022 09:42 AM Why lodging your tax return during the next fortnight could get you in big ... trends now

Australians who lodge their tax return in coming weeks - hoping for a $2,580 refund to help with the cost of living pressures - could find themselves in trouble with the law with mistakes more likely.

The July 1 start of the new financial year is often taken as a sign individuals should submit their annual tax returns without delay to get their tax rebate.

Middle and average income earners are getting back $1,500 in tax offsets on top of another $1,080 in tax cuts introduced by the previous Coalition government.

With inflation running hot, everyday Australians would be hankering for $2,580 worth of tax relief to cope with surging costs of living. 

Many employers, however, are yet to submit the earnings of their staff to the tax office.

Details on shares, bank interest, cryptocurrency and private health insurance payments are also being finalised. 

Australians who lodge their tax return this week in a bid to get back $2,580 to help with the cost of living could be more likely to find themselves in trouble with the law. The July 1 start of the new financial year is often taken as a sign individuals should submit their annual tax returns without delay to get their tax rebate (pictured is a stock image)

Australians who lodge their tax return this week in a bid to get back $2,580 to help with the cost of living could be more likely to find themselves in trouble with the law. The July 1 start of the new financial year is often taken as a sign individuals should submit their annual tax returns without delay to get their tax rebate (pictured is a stock image)

Penalties for lying on a tax return

CARELESS: 25 per cent

RECKLESS: 50 per cent

DELIBERATE: 75 per cent

REPEAT OFFENDER: 95 per cent

Source: H&R Block analysis of Australian Taxation Office penalties for making inflated claims

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Australian Taxation Commissioner Tim Loh told Daily Mail Australia those who scrambled to get in first were more likely to make a mistake and find themselves facing an audit.

'The ATO often sees mistakes in early July as people rush to get their tax return done and forget to include income from government agencies, banks, dividends from shares and cryptocurrency exchanges,' he said.

'People who lodge in July are twice as likely to have their returns adjusted by the ATO. 

'If people choose not to wait for prefill information, they increase their risk of ATO scrutiny.'

The tax office doesn't even start processing returns until July 7 and would not be paying the first set to refunds until July 16.

Electronically submitted returns take 12 business days to process.

Employers have until July 14 to provide the pre-filled earnings data of their staff to the ATO, with this method replacing the old printed group certificate. 

The tax

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