You can lodge your tax return from 1 July 2020, but there are various gains to ready a very little lengthier ahead of you post your return.

1 July 2020 marks the start out of the new economical yr, that means you happen to be formally equipped to post your 2019-twenty tax return with the ATO from this date. However just mainly because you can lodge your return, will not indicate you must. Waiting a few months ahead of lodging can most likely help you save you time and also cash.

In this article are a few reasons why you must look at ready to post your tax return.

Your profits statement may possibly not be ready

Sure, you happen to be formally allowed to post your tax return from 1 July, but your employer has a diverse deadline. Your employer has till 31 July to post your completed, up-to-date profits statement (frequently referred to as a group certification) for the economical yr with the ATO.

Your profits statement is what the ATO makes use of to properly estimate how significantly tax you are needed to spend for the economical yr. It makes use of this statement to aid decide if you’ve compensated far too significantly tax and, if you have, you can get this cash back in your tax refund. This suggests if you post your tax return on 1 July ahead of your profits statement is finalised, there’s a risk that you may possibly will need to post it once again when your current profits statement is ready.

If you’ve lost your career, experienced your profits diminished or been put on JobKeeper more than the final couple of months, there’s also a superior risk that you’ve compensated a little bit extra tax all over the yr than you needed to. This will be mirrored in your ultimate profits statement for the yr. Waiting till your profits statement is ready will be certain you get all the supplemental tax back that you’ve overpaid all over the yr.

The ATO web site has presently crashed

The ATO web site crashed a few hrs into the new economical yr on 1 July as thousands of folks flooded to the web site to post their tax return. It really is most likely the web site will be down a fair little bit more than the first few days of July mainly because of the huge spike in visitors.

This alone is yet another cause to wait a few months ahead of lodging your return: no 1 wishes to deal with a slow web site that retains crashing and reloading when you happen to be trying to comprehensive a various-webpage kind.

Will you get your tax return quicker if you lodge on 1 July?

A large amount of folks hurry to post their tax return in the first few days of the economical yr in the hope that they are going to get their tax refund faster. This isn’t necessarily the situation.

As pointed out previously mentioned, the ATO requires to see your up-to-date profits statement from your employer together with tax statements from your health and fitness insurance provider, broker and financial institution in buy to properly estimate your tax return. These statements may possibly get a few months to occur by, that means your tax return could be delayed.

You will need time to estimate all your deductions

Except you happen to be super organised and you’ve presently calculated your deductions for the 2019-twenty economical yr, you can will need a little bit of time to do this. It really is truly worth getting the time to investigation what you happen to be eligible to assert and how to assert it adequately, as it suggests extra cash back in your tax return.

There’s a bunch of new deductions relating to coronavirus that you could be eligible to assert this yr. For case in point, if you’ve been functioning from home you could be eligible to assert hundreds of bucks truly worth of home-business expenditures.

Before you post your return, examine our whole guidebook on how to lodge your tax return this yr and the exclusive coronavirus-relevant deductions you can assert.

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