Millions of Aussies warned to avoid making $1000 mistake on their tax return
The Australian Taxation Office (ATO) has issued a stern warning to millions of Australians not to make this costly mistake when lodging their tax return.
Taxpayers have been given the go ahead to lodge their individual tax returns using more than 100 million pieces of pre-filled information supplied to the ATO by employers, banks, insurers and more.
Aussies are being warned to be careful when filling out their tax return. Getty
This pre-filled data is meant to make self-lodging quicker and more accurate by reducing the number of mistakes Aussies might make when doing it themselves.
But the ATO is still warning taxpayers not to fall victim to common mistakes.
Mistakes like trying to claim the newly announced instant $1000 tax deduction without receipts before it officially kicks in.
Treasurer Jim Chalmers confirmed in April that the new tax break, which will save taxpayers up to $470 a year, will come into effect in time for the 2027 tax season.
That means it doesn’t apply to the 2025-26 financial year and can’t be claimed on this year’s tax returns.
Around 6.2 million Australians will be eligible for the instant deduction next year, saving an average of $205.
The ATO has also warned taxpayers not to rely on artificial intelligence (AI) platforms or advice from financial influencers, also known as “finfluencers”, when filling out their tax return.
“Be sure to check your pre-fill data is correct, declare all your income and claim deductions you are entitled to,” ATO Assistant Commissioner Anita Challen said.
“Remember you are making a legal declaration that the information in your tax return is true and correct.”
Other common mistakes to avoid include over-claiming deductions or inflating expenses, or forgetting to report income from side hustles and cash jobs.
Challen encouraged Aussies to take their time filling in their tax return, review the ATO’s guidelines on what they can claim, and stay alert to scams.
Taxpayers preparing their own returns have until October 31 to lodge.
Those planning to use a tax agent may have more time, but must be on their books by October 31.
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