How long does a tax return take?

Tax season is upon us again, and you might be wondering, “How long does tax refund take in Australia?”. Generally, a tax refund from the ATO will be deposited to your nominated bank account within two weeks of lodging your tax return. If there are any issues with your lodgement, there may be a delay.

In this article, we will explore:

• How long does tax return take
• How to check the progress of a tax return
• Common reasons for a tax refund delay
• How to pay ATO if you have a tax bill, and
• What you can do if your tax return is delayed.

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When can I do my tax return 2023 Australia?

If you don’t lodge your tax return on time, you could be penalised with a fine of up to $1,375. July 1st, 2023, is the commencement of the new financial year. You can lodge your tax return on this date, however, it’s best to ensure you are tax ready to avoid any delays. This can mean waiting until the end of the month.

Employers have until July 31st to provide all the PAYG details, including salary and super contributions. Once received by the ATO, this information will be available for you to see in your MyGov account and it will be categorised as “tax ready”.

Banks, health funds and government agencies like Centrelink also have until July 31st to provide the ATO with relevant tax related information.

The deadline for lodging your tax return is October 31st, unless you are registered with a tax agent. Tax agents have until May 15th, 2024, to lodge tax returns for clients.

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When do I get my tax return 2023 Australia?

You may be itching to know the answer to the questions of, “When do I get my tax return?”.

According to the ATO, they will commence full processing of tax returns on the 7th of July, 2023, and aim to start paying refunds from the 16th of July, 2023. The ATO are striving to finalise electronically lodged tax returns for the current year within 12 business days of receipt.

If you’re hoping for an early tax return and are in serious financial hardship, the good news is you can apply to have your tax return processed immediately and can receive it in just a few days.

Usually, an online tax return time frame is about two weeks to be processed and paid. For paper returns, you can expect to wait up to 10 weeks.

Delays can occur in the case that you’ve made a mistake on your lodgement or if something was “red flagged” with the ATO. This will result in your documents being processed manually.

What is the average tax return – Australia?

About 80 per cent of taxpayers expect to receive a tax refund, which makes getting your taxes done on time a big incentive. According to the ATO, the average Australian tax return amount was roughly $2,900 in the last financial year. Tax refunds this financial year may be smaller with the discontinuation of the low and middle income (LITMO) tax offset.

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What is notice of assessment ATO?

You’ll receive a notice of assessment from the ATO once your return has been processed. This document will outline your taxable income for the financial year, as well as the amount of refund you are entitled to or how much extra tax you need to pay.

How to get notice of assessment

Your MyGov notice of assessment will automatically be sent to your MyGov inbox. You will be able to view and print your notice of assessment. If you believe your notice of assessment is wrong, you will need to contact the ATO for help.

How do I check the progress of my tax return?

To check the progress of tax return lodgements, it’s as simple as asking your tax agent, calling the ATO or hopping onto ATO online services. It’s easy to find out if the ATO is in progress processing your return through the MyGov portal, where you can manage tax returns.

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The ins and outs of tax return processing

When does the ATO start processing tax returns? Tax return processing times for the ATO usually range from 2 weeks to 10 weeks post lodgement. Most online returns are processed within 14 days.

How long do tax returns take to process and can I track my tax return? There are multiple stages of tax return processing. When you check your online services to see you tax return status, you might find any of the following statuses as it moves through processing:

• 1 – In progress: processing (The ATO has received your return and have started processing it)
• 2 – In progress: information pending (The ATO are collecting information to help finish your return and may contact you for more information)
• 3 – In progress: under review (The ATO is manually reviewing your documents)
• 4 – In progress: balancing account (The ATO is balancing the result of your tax returns with your account and calculating the refund or money you owe)
• 5 – In progress: processing (When the ATO goes from balancing account to processing again, extra processing time is required. You may have an estimated assessment issue date provided at this stage)
• 6 – Issued: $ amount (this is when you will receive your notice of assessment)

Why do I owe money on my tax return Australia?

You may be confused if you receive a tax bill. Here are some common reasons why you might end up with a tax debt:

• Your employer hasn’t withheld enough tax from your salaried payments
• You haven’t kept up with pay as you go instalments if you’re a sole trader
• Tax wasn’t withheld from other income, such as investment property or dividends
• Your private health insurance rebate amount has changed or is too high
• Due to a change in income, you have to pay the Medicare Levy or Medicare Levy Surcharge.

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ATO – How to pay if you owe money

If you have a tax bill and need to know how to pay ATO, just remember that the deadline for payment is November 21st, even if you haven’t filed on time. After this date, the ATO starts charging interest on the due amount.

ATO payment options

BPAY is the most common ATO payment option, but you can also use:

• Electronic transfers
• Online services (such as your MyGov linked ATO account)
• Direct debit
• Mail
• In person at Australia Post
• International money transfers

For those struggling to meet the deadline, you can make an ATO credit card payment with BPAY or even by paying in person at Australia Post. Other options include an ATO payment plan, if you can’t make the full payment by the due date.

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What should I do if my tax return is delayed?

Here is a list of common reasons for a delay:

• You didn’t provide all your income sources
• There were unusual deductions claimed for your industry type
• You have an insolvency account and owe money
• Owe money to child support or other Australian government agencies
• You have an outstanding ATO debt
• The ATO is auditing returns in your industry or with your type of deductions.

If there has been a delay on your refund status, wait at least 30 days from your tax return lodgement date to enquire with the ATO. The ATO does not take enquiries about delays unless a month has passed.

Your tax agent can get in touch with the ATO on your behalf to follow up on delayed returns and help provide any additional information they may require when finalising the processing.

If you need help ensuring you are tax compliant and to get your refund as soon as possible, seek professional advice from a registered tax agent. They can ensure you claim all your eligible tax deductions to maximise your return from the Australian Taxation Office.