When to Lodge Your FY25 Tax Return: Why Waiting is Your Smartest Move

Tax time for FY25 is upon us, and if you're like many Australians, you're eager to lodge your return right after July 1st to get that refund as quickly as possible. However, rushing in can be a trap. The Australian Taxation Office (ATO) warns that individuals who lodge early in July are twice as likely to make errors in their tax returns.

Just because you can lodge from July 1st, doesn’t always mean you should. In this guide, we’ll break down the best time to lodge your FY25 tax return, the critical reasons for waiting, and how you can use the extra time to prepare for a smooth and accurate lodgement.

Key Tax Lodgement Deadlines for FY25

First, let's cover the important dates you need to know for individual tax returns, as specified by the ATO:

• Lodging Yourself: If you plan to prepare and lodge your own tax return, the deadline is 31st October 2025.
• Using a Tax Agent: If you're using a registered tax agent, you must engage them before the 31st of October. Tax agents often have access to extended deadlines, which could be as late as May 2026, depending on your situation.

The Hidden Risk of Lodging Too Early

The main reason why lodging your tax return on July 1st is risky comes down to one thing: your financial data isn't ready yet.

The ATO’s pre-fill service relies on information provided by third parties such as employers, banks, health insurers, and fund managers. Most of these organisations don't finalise their data and send it to the ATO until mid-to-late July. For complex investment income, this information can arrive even later.

Lodging your return in the first few weeks of July means you’re essentially "flying blind" without this verified information, which can lead to common and costly mistakes like forgetting to declare income or missing out on deductions.

The Consequences of an Incorrect Return

Rushing the process increases the chance of errors. If you do make a mistake on your return, you will have to lodge an amendment later to correct it. While this can be done online, an amendment can take around 20 days to be processed by the ATO. This means that trying to get your refund faster by lodging early could ultimately slow the whole process down.

Furthermore, lodging an amendment can slightly increase your audit risk, as it may prompt the ATO to take a closer look at your return.

The Best Time to Lodge Your Tax Return

For a smooth, accurate, and fast refund, it pays to be patient.

• For most individuals: The best time to lodge is from late July onwards.
• For investors: It's ideal to wait until late August to early September to ensure all investment income data has been pre-filled.

How to Get Ready While You Wait

Instead of impatiently refreshing myTax in early July, use that time to get prepared.

• Gather Your Documents: Use the first few weeks of July to collect all your essential paperwork. This includes payment summaries, bank statements, and any receipts for deductions you intend to claim.
• Check Your Details: Log in to myTax and ensure all your personal details are up to date, especially your contact information and bank account details. This is crucial for receiving your refund without delay.
• Monitor Pre-filled Data: You can log into myTax to see when your income statement is marked as "tax ready" and what other information has been pre-filled by the ATO.
• Research Deductions: Visit the ATO website and check the occupation-specific guides that match your job. These guides provide a clear idea of the typical deductions people in your industry can claim, ensuring you don’t miss anything you're entitled to.

By getting organised now, you can lodge your return quickly and accurately as soon as all your data is ready. In most cases, the ATO processes refunds within ten days of lodgement, although it can sometimes take longer.

Good luck with your tax return—here's to a process that is quick, easy, and drama-free!