Tax season can be a stressful time, but one of the most common questions on everyone’s mind is: how long will it take to get my tax return? The processing time for your tax return depends on several factors including whether your return is complete and accurate and the processing times of the Australian Taxation Office (ATO). And it can also depend on which accountant Melbourne that you use to lodge your return for you – a good reputable accountant is likely to ensure that you receive your refund quicker – the ATO is less likely to hold up and review the returns that they lodge. Let’s break it down to give you a clearer picture.
Filing Method Matters
One of the biggest factors influencing the time it takes to receive your tax return is whether you file electronically or via paper:
- Electronic Filing (e-filing): This is the fastest way to lodge your tax return and receive your refund. The ATO processes most e-filed returns within 1-2 weeks, especially if you lodge via a registered tax agent (or tax accountant Melbourne like Nobel Thomas).
- Paper Filing: If you mail a physical tax return, expect longer processing times. Paper filings can take up to 10 weeks or even longer, depending on the time of year and the efficiency of the ATO. We strongly recommend against lodging paper – note than if you use an accountant Melbourne, they will lodge electronically.
Timing of Submission
When you lodge your taxes can also impact how quickly your return is processed:
- Early in the Tax Season: Lodging your return early in the season, typically in July or August, can lead to faster processing times as the ATO is less likely to be backlogged at this time.
- Peak Lodgment Periods: Filing close to the October 31 deadline or during peak periods (around May i.e. 11 months after the end of the financial year) often means longer wait times, as the ATO deals with a higher volume of lodgments.
Factors That May Delay Your Tax Return
Several issues can cause delays in processing your tax return, including:
- Errors or Omissions: Incorrect or missing information, such as an incorrect interest or dividend amount, incorrect recording of wages can slow down processing.
- Audits or Reviews: If your tax return is flagged for review or audit, the processing time can increase significantly. This could happen if you claim unusual deductions or if the information in your return is outside the norm. Note that if you are selected for an audit, it is extra important that you have engaged a tax accountant Melbourne – a registered accountant is always better to handle an audit for you than you (and if you have paid for audit insurance, even better, accounting fees to attend to the audit will be paid for by the insurance company!). Please contact us if you need further information on audit insurance.
- Outstanding Debts: If you owe existing tax, your refund will be offset against existing tax debt before anything leftover will be paid to you.
- Incomplete Bank Details: If your bank details are incomplete, then the ATO is unlikely to pay your refund to you as they are phasing out the use of cheques. So, please make sure that your bank details are complete on the tax return that you lodge or as recorded with the ATO.
- Manual Intervention: Some returns may require manual review, which extends the processing time even by many months!
Always best to ensure that your return is lodged accurately – hence the strong recommendation is to use an accountant Melbourne to help with the lodgement of your tax return. The accounting fee charged will be tax deductible which always helps!
How to Track Your Tax Return
It can be quite difficult to track the status of your return as the ATO does not advise when your refund will be issued. Though by using a tax agent, they will be able to contact the ATO on your behalf to gauge when your tax refund is likely to be issued.
Tips to Speed Up Your Tax Refund
If you’re eager to get your tax refund faster, consider these tips:
- File Electronically: Avoid paper forms and opt for e-filing for quicker processing (remember that all tax agents lodge electronically).
- Double-Check Your Return: Ensure all information is accurate and complete before lodging. Remember that a tax accountant Melbourne is more likely to lodge an accurate return than you!
- Use Direct Deposit: Refunds sent directly to your bank account are typically processed faster than paper cheques (which are being phased out by the ATO).
- Lodge Early: Don’t wait until the October 31 or May the following year to submit your tax return. These are the peak lodgement times.
Conclusion
While the exact timeline for receiving your tax return varies, lodging electronically and avoiding errors are the best ways to speed up the process in Australia. Keep in mind that the ATO processes millions of returns each year, so some delays may be unavoidable. By using a tax accountant Melbourne, you can minimize wait times and get your refund as quickly as possible.
