As of the end of July, the Australian Taxation Office (ATO) has processed more than 2.6 million individual tax refunds for the 2024–25 financial year, with the average payout reaching $2,548, according to new figures. The total value of refunds issued so far stands at more than $6.6 billion, with millions more Australians expected to lodge returns in the coming months.
Roughly four million people have already submitted their tax returns. With over 14 million taxpayers lodging annually, many are still expected to file before the October 31 deadline. Tax professionals have reminded early lodgers to remain cautious when using the ATO’s myTax system, as incomplete or delayed third-party data may lead to incorrect filings.
Pre-Fill Data May Be Incomplete for Early Submissions
Although the ATO offers a pre-fill feature that automatically inputs income and deduction data, Australians filing early may be relying on incomplete information, especially for financial details reported by banks and employers. According to Mark Chapman, Director of Tax Communications at H&R Block, many third parties do not send data to the ATO until late July or early August, which can leave early returns missing critical information.
“Many third parties, such as banks, don’t pass information about you to the ATO until late July or early August, so early lodgers who use the ATO’s myTax system will often find lots of data missing from their pre-fill,” Chapman told Yahoo Finance.
He added that if any income is omitted, the legal responsibility remains with the taxpayer, even if the data was sourced from the ATO’s own platform. This has led tax experts to advise caution and to cross-check all figures before submitting returns, especially for those lodging without the help of a registered tax agent.
Chapman also noted that the ATO provides 40 industry-specific deduction guides, helping individuals to identify legitimate claims such as work-related travel, tools and professional equipment. Immediate deductions apply to items costing $300 or less, while more expensive purchases must be depreciated over time.
Tax Refunds Are Largely Being Saved, Not Spent
Research by Finder suggests that most Australians are adopting a conservative approach to their tax refunds amid ongoing financial pressures. According to Graham Cooke, Head of Consumer Research at Finder, 52% of Australians plan to put their refunds into savings, while 19% intend to use the funds to cover household bills.
Only a small portion of recipients—7%—are allocating refunds for holidays, while even fewer are directing funds towards mortgage repayments (6%) or shopping (5%). Cooke described the refunds as a form of “enforced saving”, offering temporary financial relief to households struggling with rising living costs.
Most tax refunds are processed within two weeks, and progress can be tracked via the myGov portal or the ATO app.
