Many Australians have filed their income tax returns early this year. ATO statistics show over 740,000 online lodgements so far, up from 640,000 at the same time last year.
A surge in lodgements, early super release, and JobKeeper applications caused the ATO’s online system to crash on July 1.
In the first two weeks of the financial year, individuals lodged over 1.7 million tax returns, a 12% increase from last year. ATO Assistant Commissioner Karen Foat reported that taxpayers have received over $1 billion in refunds, with an average refund of $2,365. This boost may help cover living expenses during tough times.
With over 990,000 Australians unemployed, large tax refunds offer much-needed financial relief.
Electronically lodged tax returns typically process within two weeks. During this time, the ATO matches data and checks for errors.
Common Mistakes:
Some individuals mistakenly claimed both the 80 cents per hour home office deduction and the existing 52 cents fixed rate for March–June 2020. The ATO warns that using the 80 cents method excludes the 52 cents method and depreciation claims for written-off assets. If you made this mistake, consult us. As leading tax return specialists in Sydney and Adelaide, we can help correct it before an audit.
During COVID-19, most employees worked from home. If you didn’t travel to clients or between worksites, you cannot claim travel or car expenses. The ATO has noticed some people copying past deductions without considering changes.
Some business owners failed to report the $10,000 NSW Government grant and JobKeeper payments as assessable income. These must be included, though they don’t have GST implications. However, the ATO’s cash flow boost for small businesses is not taxable.
