8 Foremost Reasons for Delay in Tax Return in Australia

The tax season can induce anxiety for many Australians, especially when awaiting refunds from the Australian Taxation Office (ATO). In certain instances, refunds may be delayed, or individuals could find themselves owing money to the ATO. By reaching out to tax agents, individuals can often expedite the resolution process, ensuring that any issues causing delays are promptly addressed. Taking proactive measures and seeking assistance from tax accountants in Perth can alleviate the stress associated with tax return delays and ensure compliance with relevant regulations.
In this blog, we will examine into eight common reasons for tax return delays and provide some tips on how to avoid them. Additionally, we will explain how tax accountants in Perth can assist you with your tax returns, ensuring a smooth and timely tax return process.

1. Lodging your tax return too early or too late.

One of the most common reasons for tax return delay is lodging your tax return too early or too late. The ATO advises that maximum data from employers, banks, government corporations, and health finances can be automatically loaded into your tax return in mid-late July. If you lodge your tax return earlier than this date, you may skip a few essential information or make errors to require amendments later. This will slow your process progress and delay your refund.

If you file your tax return after the deadline, the ATO may levy penalties. The deadline for filing your tax return is October 31, unless you engage a registered tax agent in Perth who can submit it on your behalf at a later date. You can utilize the ATO's online systems such as myTax or MyGov to self-lodge your tax return or seek assistance from a tax accountant in Perth who can manage the preparation and lodgment process on your behalf.

2. Losing or forgetting your income records or receipts

Losing or forgetting income statistics or receipts is a common cause of tax return delays. Accurate reporting of various earnings sources, including wages, dividends, and rental income, is crucial. Additionally, maintaining receipts for work-related deductions such as vehicle expenses and home office costs is essential. Failure to track this information can lead to inaccuracies in reporting and potential audits by the ATO. To prevent delays or tax discrepancies, individuals should diligently organize and store all financial records for the year and consider seeking assistance from tax accountants in Perth to access tax information efficiently.

3. Making mistakes or errors in your tax return

Making mistakes in your tax return is another common cause of tax return delays. Some of the common errors are given below:

Entering incorrect information, such as name, date of birth, tax record variety, bank account details, and many others.
Missing out or double-counting earnings or deductions.
Claiming deductions that you are not entitled to or that are not justified.
Not claiming foreign income or property.
Not reporting capital profits or losses from the sale of assets.
Not applying the perfect tax costs or offsets.

These mistakes can lead to your tax return being rejected, amended, or audited by the ATO, potentially delaying your refund or resulting in a tax debt. To avoid these issues, it's essential to carefully review your tax return and ensure that all data is accurate. You can seek assistance from tax agents in Perth who can review and lodge your tax return for you.

4. Having a complex tax situation or multiple sources of income

Tax return delays can often arise due to complex tax situations or multiple sources of income. Individuals who are self-employed, run businesses, or have investments may experience longer processing times by the ATO. This delay occurs because the ATO needs to verify information and request additional documentation. To mitigate delays, it is crucial to accurately report all income and deductions and provide the required information promptly. Seeking assistance from tax accountants in Perth can streamline the process, ensuring that your tax return is filed efficiently and on time. Contact tax agents who can help navigate complex tax situations and ensure compliance with regulations.

5. Having a tax debt or a bankruptcy arrangement

Having a tax debt or under any financial hardship is another reason for the delay in tax return processing. If you owe tax debt or are under a financial hardship circumstance, this can delay your refund or reduce the amount that you receive. To prevent this situation, it is advisable to manage your tax debt by making payments as promptly as possible or arranging a payment plan with the ATO. You can also seek assistance from a tax accountant in Perth who can guide you through managing your tax debt or bankruptcy arrangement and provide advice on the most suitable course of action.

6. Having no income or earning less than the tax-free threshold

If your PAYG summary includes a reportable fringe benefit or reportable employer superannuation contributions, you may still need to file a tax return, even if your income is below the $18,200 threshold. Similarly, eligibility for a private health insurance rebate may require tax return filing, regardless of income level. Failure to inform the ATO of your non-lodgment status may lead to assumptions of non-compliance, potentially resulting in ATO contact or default assessments. This oversight can delay refunds or result in tax debts. To avoid such situations, promptly inform the ATO of your non-lodgment status or seek guidance on non-lodgment matters from tax agents in Perth.

7. Being affected by a natural disaster or a pandemic.

Being affected by a natural disaster or a serious illness is another reason for tax return delays. If you have been impacted by a natural disaster such as a bushfire, flood, cyclone, or similar events, or have been affected by a pandemic like COVID-19, you may be eligible for tax relief or assistance from the ATO. This could include deferring or waiving payments, accessing provisions or grants, or accessing your superannuation. However, this can also result in a delay in filing your tax return. To prevent this, contact the ATO or a tax accountant in Perth as soon as possible. We can assist you with your tax situation and ensure that your tax return is filed promptly and effectively.

8. Experiencing a system outage or a technical issue.

Experiencing system downtime or technical problems is another reason for delays in tax returns. Occasionally, both the ATO and your tax agent may encounter system outages or technical issues that affect the lodgment or processing of your tax return. This can result in postponement of your refund or cause errors or discrepancies in your tax return. To avoid this, it is essential to check the ATO’s website or social media for any updates or notifications regarding system downtime or technical problems. Additionally, you can contact a tax accountant in Perth and inquire about the status of your tax return and any issues they may be encountering.

If you have any questions about maximizing your financial well-being, please feel free to contact one of our Bookkeeper / Tax Agent / Tax Accountant at 0893860047. Let’s shape your success together!