ATO Warns Millions of Aussies Over $1,519 Tax Refund 'Myth'

More than 10 million Australians expect a tax refund this year, with one-third saying it was 'vital' or ' very essential' to their budget.

Millions of Australians will be able to submit tax returns to the Australian Taxation Office (ATO) in the coming weeks.  While many people are hoping for a cash boost in the form of a refund, taxpayers are being advised not to rush.

More than 10 million Australians expect a tax refund this year, according to new Finder research, with 7% admitting that the additional money would be "critical" to their financial well-being.  The average Australian expects a refund of $1,519. 

Finder's head of consumer research, Graham Cooke, told Yahoo Finance that Australians would be scrambling to get their hands on some additional cash starting July 1.

"Australians who are living month to month are very eager to access their tax refunds to ease financial strain," Cooke pointed out.

"With many households struggling with the expense of living, these reimbursements provide much-needed relief.  For some, the refund is critical to meeting basic bills, such as keeping the lights on."

Almost one in every four Australians surveyed claimed their tax refund was "very important" to their financial well-being, with another 41% saying it was "somewhat important." 

Women were more likely to require a return, with 39% stating it was "critical" or "very important" for their money, compared to 24% for males.

Warning not to rush your tax return.

 It comes as Australians are cautioned not to rush their tax forms, as they risk making mistakes and missing out on valid claims.

Jenny Wong, CPA Australia's tax head, has urged Australians to take the time over the next few weeks to gather evidence of work-related costs and wait for the ATO to pre-fill their information before lodging.

"Firing the starting pistol on your tax return too quickly means you could end up shooting yourself in the foot," she told me.

"There is a common notion that lodging early ensures you receive your refund first. However, this is not the case.

"People who lodge early are more likely to have to revise their returns later, so it's advisable to wait.  It will benefit you in the long run."

The ATO normally suggests that you wait until the end of July to file your tax return since information such as bank interest, dividend income, government payments, and health insurance information is pre-filled.

The ATO has stated that it will focus on areas where it sees common mistakes during tax season, such as work-related costs, working-from-home deductions, and various income sources.