Today is the deadline for employers to finalise their payroll data for the 2024-25 financial year with the Australian Taxation Office (ATO). A tax specialist says people may be able to start preparing and lodging their tax returns after today, but even then, the “safe zone” will depend on what other income they received during the year.

More Australians rushed to lodge their tax returns on July 1 this year compared to last, the ATO revealed. That’s despite warnings from the tax office and experts to hold off or risk making major mistakes.

Tax App director Alesha Masaud told Yahoo Finance taxpayers should generally hold off until after July 14 to start lodging their tax returns.

RELATED

• $1,130 ATO bill ‘shock’ after Aussie makes common tax return mistake

• ATO tax return warning for 2 million Aussies over dangerous act

• Highest paying tradie jobs paying up to $135,000 a year

“Previously, people could lodge on the 1st of July and it was great. But now, with all the updates and information the ATO gets, the ATO has given employers time until the 14th of July to be able to finalise everything,” she explained.

“If things aren’t finalised with the ATO, then a lot of people who lodged before the 14th will have to lodge amendments and have to pay money back. It becomes really messy.”

Masaud said taxpayers should wait until after July 14 when their income statement has been finalised with the ATO before lodging.

If you have a more complex tax return and have income from other sources, she said it would be wise to wait longer.

“Managed funds can take until late July to mid-August, depending on the managed fund. Usually, the managed fund will contact them directly,” she said.

“Similarly with share trading platforms, and one of the key ones is private health insurance. That information needs to be ready so that people don’t get charged extra on their tax return.

"Those are the reasons as to why you have to wait at least until the 14th, if you’ve done nothing apart from just getting employment income."

ATO says wait until income statement is marked 'tax ready'

The ATO has advised taxpayers to wait until their income statement is marked as ‘tax ready’ and data has been pre-filled by the ATO.

Most pre-fill data is finalised by the end of July, including from government agencies like Centrelink, health funds and financial institutions. Some data is received later, such as partnership and trust distributions.

The ATO revealed 142,000 people who lodged in the first two weeks of July last year had to lodge amendments, or had their returns investigated and amended by the ATO to fix inaccuracies in their tax return.