As the tax refunds begin – $5.3bn come from the ATO

Statistics have shown us that the average Australian taxpayer received a refund just shy of $2500 as we enter into the 2021 tax time. This all contributes to the $5.3 billion that has been injected back into the economy, a welcome move as the country faces continued lockdowns, where Sydney alone is looking at an approximated $100 million a day loss.

There has been an unsurprising rush to lodge documentation early this year, so that about 10 million Australian taxpayers can benefit from the low and middle income tax offset of $1080. In addition to this, larger refunds were to be expected as substantial working from home expenses are tallied up with offices needing to operate remotely as well as four and a half months of backdated stage 2 tax cuts.

However with rushed applications comes unnecessary errors and the ATO had warned taxpayers to be mindful of lodging tax returns too early where missing income, interest and dividends might be apparent when this relevant information is pre-filled by third party sources in late July.  

With over 170,000 tax returns lodged by the 1st July 2021, there may be discrepancies with these when such third party information has not yet been provided.

The ATO has confirmed that they will not begin processing tax returns until the middle of the month, so stresses that by taking your time and ensuring that any avoidable errors are indeed eliminated through double checking, waiting and taking your time with your return, you will be able to receive any tax returns faster and without unnecessary confusion and stress. 

The team at ATS can offer you swift and accurate support when it comes to filing your tax return year on year. Especially if you are a business, are supporting employees or have been subjected to any of the changes that have come into effect over the past 12 months, you may well benefit from the additional support and guidance that our professionals can provide. 

The ATO reports that some 230,000 returns are adjusted yearly as individuals often forget to include some income, including rental income, interest or dividends within their report and the discrepancies have been picked up through third party reporting. 

Avoiding mistakes results in your refund being processed faster so that you are able to benefit in whatever way you wish from the cash injection into your pocket.