Experts reveal why you SHOULDN'T file your tax return on July 1 - as the ATO braces for an 'onslaught' with millions of Australians strapped for cash
- Expert said Australians should ensure they have paperwork in order before filing
- Filing full return may not be possible if the employer hasn't given a pay summary
- Leading accountancy firm bracing for 'onslaught' come start of tax year on July 1
- May also take a few weeks from start of July for ATO to start processing refunds
- Millions of Australians desperate for a boost with unemployment at 7.1 per cent
- Here’s how to help people impacted by Covid-19
Australians should avoid rushing to file their tax return when the financial year ends at the end of June, experts have warned.
This year's round of tax returns will be heavily relied upon by those who have been hit hard during the COVID-19 pandemic - with the official unemployment rate jumping to 7.1 per cent on Thursday.
Willett Johnston Partners accountant Ben Johnston said his team were 'bracing for an onslaught' come July 1, with millions of Australians desperate for a financial boost.
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Australians wanting a quick refund come July 1 are urged to ensure they have all the information before lodging - including private health insurance statements and dividend notices
'I think a lot of people will be pretty reliant on refunds this year, and they will be keen to get it processed as quickly as possible,' he told news.com.au.
Filing your return straight away though could mean losing out on part of your end-of-year refund, according to one of Sydney's leading accountancy firms.
Mr Johnston said Australians should first make sure they have all the information they need to complete the ATO forms.
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For those whose tax contributions are pay-as-you-go (PAYG), he said it may not be possible to file a full return until employers provide a payment summary - which could come in as late as mid-July.
Other key pieces of information include private health insurance statements and dividend notices showing the value of shares in a company.
'If you rush in and do it within the first few days, there’s the risk of omitting information pertinent to your tax return,' he said.
Mr Johnston added typically the ATO can take several weeks to begin processing applications after the new tax year comes into effect.
Experts are meanwhile warning that Australians expecting a hefty refund in 2020 could be in for a rude awakening when their return is assessed.
This year's tax returns will be different due to the coronavirus lockdown, particularly for those receiving the JobSeeker and JobKeeper government benefits.
Some of those recipients will be entitled to refunds, but others will find themselves owing money to the tax office.
'It could go either way,' H&R Block director of tax communications Mark Chapman told Daily Mail Australia.
'For those on JobKeeper, their employer should be deducting tax accordingly so there should be no nasty surprises.'
Some JobSeeker recipients expecting a higher than expected refund could be for a rude shock, depending on circumstances. Pictured are queues outside a Melbourne Centrelink
'Those who lost their jobs in the nine months prior to the pandemic, many may have had an over-reduction in tax so they will be eligible for a bigger refund.'
He warned lower income earners may get a shock, as their receipt of sizable government benefits may lift them above the tax-free threshold.
'Those on JobKeeper, who have received a pay rise as a result, will see a flow-on effect with a lower refund or even be left with a tax bill,' Mr Chapman said.
'It may also apply to part-time workers with multiple jobs.'
Other variables such as low and middle income tax offsets and Medicare surcharge levy also need to be considered in each individual case.
People are urged not to 'over-assume' impact of job losses when filling out their tax return
Australians relying on the full $1080 tax offset announced by Prime Minister Scott Morrison last year could also be in for a nasty surprise.
Those on a taxable income under $126,000 will get some of the low and middle income tax offset, which ranges from the $255 base amount for those earning under $37,000 to the maximum $1,080 offset.
'The amount of the offset you are entitled to will depend on your individual circumstances, such as your income level and how much tax you have paid throughout the year,' the ATO website states.
'In other words, you might not be entitled to the full $1,080.'
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