As the Australian Taxation Office (ATO) begins processing tax returns for the 2024–25 financial year, experts and officials are warning individuals against submitting their returns too early. The advice comes amid a spike in early filings, with many Australians eager to receive their refunds despite potential risks of filing before income data is finalized.
The caution centers on the ATO’s July 14 deadline for employers to finalize payroll information. Submitting returns before this date can lead to inaccurate filings, amendments, and unexpected repayments. Tax professionals are calling for a more cautious approach, especially for taxpayers with multiple income sources or complex deductions.
Early Filing Linked to Errors and Repayments
According to Alesha Masaud, director of Tax App, submitting a return before July 14 is increasingly problematic. “Previously, people could lodge on the 1st of July and it was great,” she told Yahoo Finance. “But now… the ATO has given employers time until the 14th of July to be able to finalise everything.”
Earn Money on the Side? The ATO Has a Warning That Could Change EverythingFiling before this date means income data may not yet be marked as ‘tax ready’, leading to inaccurate returns. The ATO reported that in the first two weeks of July last year, over 142,000 people who filed early had to amend their submissions or had their returns corrected by the agency. These situations can result in delays, reprocessing, or money being owed back to the ATO.
Complex Returns Face Extended Delays
For taxpayers with income beyond basic employment—such as from managed funds, share trading platforms, or private health insurance—experts recommend waiting beyond the July 14 benchmark. Masaud explained that managed funds typically take until late July to mid-August to issue the necessary documentation.
Additionally, private health insurance data and partnership or trust distributions are often reported later than employer income. Submitting a return without these details risks underreporting, overpaying taxes, or triggering penalties. Taxpayers are encouraged to monitor their pre-fill data and ensure that all income sources are accounted for before filing.
Aussies issued July 14 ATO tax return warning: ‘Really messy’ https://t.co/brP6EWdBDn
— Yahoo Finance Australia (@YahooFinanceAU) July 14, 2025
ATO Pre-Fill System not Complete Until Late July
The ATO relies on its pre-fill system to help ensure accurate reporting. This system draws data from employers, government bodies like Centrelink, financial institutions, and health insurers. While much of this information is available by the end of July, some—such as trust distributions—may arrive later.
Taxpayers who file before this data is available increase their risk of inaccuracies. The ATO advises individuals to wait until their income statement is marked as ‘tax ready’ in their myGov account. This label confirms that employers have submitted and finalized the necessary data with the ATO and that it has been validated for filing.
Expert Guidance Emphasizes Patience and Accuracy
While the prospect of an early refund may tempt many to file as soon as possible, tax professionals emphasize that patience may ultimately save time and money. “If things aren’t finalised with the ATO, then a lot of people… will have to lodge amendments and have to pay money back,” Masaud said.
The ATO has also echoed this sentiment through multiple public advisories, urging Australians to verify their income and deductions before filing. Those with straightforward employment income may safely file shortly after July 14, but individuals with more complex financial situations are advised to wait until all data is available and cross-checked.
