The Australian Tax Office has adjusted more than 595,000 individual tax returns due to missing income, overstated deductions, tax credits and other discrepancies.
The ATO said today that this level of adjustment highlighted the risks of submitting tax returns too early.
The discrepancies were picked up through the ATO’s data matching program.
“Taxpayers who lodge as soon as the financial year ticks over risk submitting incomplete and inaccurate returns, which can trigger processing delays and follow up contact from the ATO,” the Tax Office said in a statement.
“During the 2024-25 financial year taxpayers who lodged before pre-fill were more than twice as likely to have their returns amended.”
The ATO said it corrected more than 140,000 individual tax returns where the discrepancies were in employment income, interest, dividends, welfare payments, Medicare levy exemptions and private health insurance.
ATO Assistant Commissioner Anita Challen said taxpayers could save time and effort by waiting until all their pre-fill was available.
Pre-fill means the ATO automatically populates a tax return with financial data they have collected from third parties throughout the year.
“While the ATO welcomes taxpayers’ enthusiasm at the start of tax time, the numbers don’t lie – lodging too early creates more work for taxpayers,” Ms Challen said.
“Many taxpayers assume getting in first means getting a faster refund, but that is not always the case. Early lodgment increases the likelihood of missing information and mistakes being made, which can delay processing and require amendments.”
The ATO said the quickest and most seamless lodgment experience usually meant waiting until late July.
