Millions of Australians are being urged by the Australian Taxation Office (ATO) and tax experts to avoid rushing their tax returns for the 2025-26 financial year. While the temptation to file early for prompt refunds is strong, haste can lead to errors, increased fraud exposure, and potential delays.
CPA Australia tax lead Jenny Wong advised that the optimal time to lodge a tax return is generally no earlier than the end of July. This allows the ATO sufficient time to finalize and pre-fill income information, which helps ensure accuracy. "Getting your tax return done early can be tempting, but it's important not to rush," Wong stated. "Waiting until all your income information has been finalised and pre-filled by the ATO will help ensure accuracy and reduce the risk of errors that can trigger reviews or delays."
Data from the ATO shows a slight decrease in early lodgements. In the first three weeks of July 2025, 2.8 million individual tax returns were filed, a 4% drop from the previous year. By mid-August, the total reached five million, also down from the prior year. "This suggests more taxpayers may already be taking a more cautious approach, which is encouraging," Wong noted.
Taxpayers are reminded to ensure they have all necessary documentation for deductions and to avoid using estimates where possible. The ATO reported that over 595,000 tax returns from the 2024-25 financial year required adjustments due to missing income, overstated deductions, or other discrepancies. Individuals who lodge before pre-fill data is available are more than twice as likely to need amendments. "Taking shortcuts or guessing figures can not only lead to incorrect claims but may also result in having to amend your return later," Wong added. "Spending a bit more time upfront can save time, stress and potential penalties down the track."
Tax Scams During Tax Time
Tax time is also a peak period for scammers who impersonate the ATO or tax agents through emails, text messages, and phone calls. These fraudulent communications aim to trick individuals into revealing personal information or sending money. To avoid falling victim, taxpayers should refrain from clicking on unsolicited links or providing sensitive details in response to unexpected messages. "If something doesn't seem right, pause and verify the source," Wong advised. "Access official services through the ATO website or app, or contact your registered tax agent directly. With increasingly sophisticated scams, a moment of caution can prevent significant financial harm."
For those uncertain about their tax obligations or dealing with complex financial situations, engaging a registered tax agent is highly recommended. "Professional advice can provide peace of mind and help ensure you are complying with the rules while claiming everything you're entitled to," Wong said. "Ultimately, a careful and informed approach is the best way to achieve a correct and timely outcome this time."