When is tax time? When is my tax return due? Will I get a refund?

Australia Broadcast Center

2 days ago

A new financial year begins tomorrow, meaning it's time to start thinking about your tax return.
Some people look towards this time with dread, while those who bank on getting a tax refund may be rubbing their hands together with glee.
Whatever the motivation, many of us just want to get it over and done with.
Here's what you need to know before you start.
Each new financial year starts on July 1 — which is tomorrow.
It'll be the 2025-26 financial year.
Technically, you can lodge your tax return for the 2024-25 financial year from tomorrow.
But experts reckon it's best not to rush into it.
"Wait until the end of July," Australian Taxation Office (ATO) assistant commissioner Rob Thomson says.
"We'll have pre-filled a lot of the information in for you, [which] makes it easier to get it right the first time," Mr Thomson says.
This might include your earnings for the last financial year from your employment and interest you've earned from your bank account.
That depends on whether you're doing it yourself or if you're going through an accountant.
If you're lodging your tax return yourself, it's due October 31.
But if you're going through an accountant, you may get more time.
"You need to make sure that you are on their books by October 31," an ATO spokesperson said.
"You should contact your tax agent to discuss by when you will need to lodge your return."
If you've already got a tax file number, you can find it in the federal government's myGov app if you've linked your account to the ATO.
Tap the "Services" icon on the bottom right-hand corner and click the "Australian Taxation Office" link.
The next screen that pops up should have a "Find my TFN" icon to press.
But you can also find it on your tax returns from previous years, your pay slips or an account statement from your super fund.
If you earned less than $70,000, you may be eligible for a free service called Tax Help.
The program matches people up with accredited volunteers who help them lodge their tax returns online.
You can find out more about this free service on the ATO's website.
You can fix it after lodging.
"If you forgot to report any income, capital gains or deductions, don't worry," the ATO said on social media.
"You generally have up to two years to amend your tax return."
That depends on your personal circumstances.
You only get money from the ATO if you've paid more tax than you should have throughout the year.
This money is called a tax refund.
But if you've paid the right amount of tax, you won't get any money back from the ATO.
And it's possible that your tax assessment will say you actually need to pay the ATO money and you'll end up with a tax bill.
If that's the case, there are options available to you if you can't afford to pay your bill off in one go — this ATO website lists the ways you can get help coping with a bill.
That depends on how you lodge your tax return.
Here's how long the ATO says it generally takes to process tax returns:
Once the ATO processes your return, you'll get what's called a notice of assessment.
If you're entitled to a refund and you have provided the ATO with your bank details, that money will be transferred to your bank account.
"We usually see payment processing times of around three business days from when we issue the notice of assessment," an ATO spokesperson said.
"This timing is dependent on your bank and how long they take to process that into your account."
But if you've gone via an agent and didn't pay an up-front fee, it might take longer.
That's because some agents will instruct the ATO to pay the refund into their account, when they'll deduct their fee and then pass on the rest of the money to you.
If you haven't given the ATO your bank details and are expecting your refund via cheque, you'll probably be affected by the new rules that came into effect in January.
Those rules state that the ATO can hold on to your refund for up to 90 days while they contact you, asking for your bank details.
If you give them your bank details — or your accountant's — the ATO will transfer your refund into that account.
Otherwise, if you don't give the ATO your bank details within those 90 days, you'll eventually be sent a cheque.
Yes.
But it could take much, much longer this year because of the new 90-day rule we talked about above.
This is part of the federal government's plan to phase out cheques.
The ATO will stop issuing refunds via cheque in 2028.
Its preferred method of paying out refunds is via what's called an electronic funds transfer (EFT) — which means putting the money directly into your bank account.
"EFT payments are faster and more secure than cheques," the ATO's website says.
But, in order to do this, the ATO needs your bank details so it can specify which account to put that money into.
"We'll only use these account details to deposit refunds and ATO-held super," the ATO says.
"We don't use them for direct debits."