{"id":800265,"date":"2026-07-14T18:54:23","date_gmt":"2026-07-14T18:54:23","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/800265\/"},"modified":"2026-07-14T18:54:23","modified_gmt":"2026-07-14T18:54:23","slug":"ato-tax-refunds-start-hitting-bank-accounts-as-warning-over-major-mistake-issued-critical","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/800265\/","title":{"rendered":"ATO tax refunds start hitting bank accounts as warning over major mistake issued: ‘Critical’"},"content":{"rendered":"\n

The Australian Taxation Office (ATO)<\/a> has started paying out tax refunds to Aussies who have lodged their returns. Millions of Aussies say the cash boost will be “critical” to their financial wellbeing this year, but they are being warned not to rush<\/a> lodging their returns. <\/p>\n

The ATO typically processes tax returns<\/a> within two weeks if you lodge your return online, with any refund deposited into your nominated bank account after your notice of assessment is issued.\u00a0 <\/p>\n

Mark Waller, managing director of One Click Life and a certified practising accountant, told Yahoo Finance the ATO had started paying out refunds<\/a> to some of his clients overnight. <\/p>\n

RELATED <\/p>\n

“Last year, 1.6 million people lodged in the first two weeks of July so I suspect it’s probably similar numbers, if not a little bit more this year. Everyone’s refunds are starting to hit,” Waller said. <\/p>\n

Waller said he was seeing people receive slightly bigger refunds “across the board” this year, but this was down to people being better at claiming work-related deductions<\/a>. <\/p>\n

“What we’re seeing is people being a little bit better with managing their work-related expenses this year, so keeping all their receipts and having all the substantiation ready to go at the start of July,” he said. <\/p>\n

Do you have a story to share? Contact tamika.seeto@yahooinc.com<\/a> <\/p>\n

Aussies desperate for tax refund doubles <\/p>\n

Around 38 per cent of Aussies are expecting a tax refund<\/a> this year, according to Finder, with 18 per cent admitting the extra cash will be “critical” to their financial wellbeing. <\/p>\n

This number has doubled over the past year,<\/a> with an increase of more than 704,000 taxpayers who are desperate for the cash injection.\u00a0 <\/p>\n

More than a third (35 per cent) said their tax refund was “very important” to their financial health, while 29 per cent said it was “somewhat important”. Just 18 per cent said it was “not important” to their finances. <\/p>\n

Finder money expert Richard Whitten told Yahoo Finance millions of Aussies were counting down the days until tax refunds started landing in their bank accounts. <\/p>\n

\"Finder<\/a> Finder money expert Richard Whitten says many Aussies are counting down the days until their tax refund hits. <\/p>\n

“For households doing it tough, a tax refund isn’t just a boost \u2013 it’s a financial life raft. An extra few thousand dollars is a big deal,” Whitten said. <\/p>\n

“It’s troubling that those who say their refund is critical to their financial wellbeing have doubled in the last year.” <\/p>\n

Of those expecting a refund, 58 per cent are planning to put it in savings, and 14 per cent will use it to pay for household bills like insurance and electricity. <\/p>\n

Another 6 per cent will use it to pay off their mortgage<\/a>, while another 6 per cent will use it to splash out on a holiday. <\/p>\n

Whitten said it was worth thinking carefully about how you used it. <\/p>\n

“Consider using the funds to pay down high-interest debt, boost your emergency fund or contribute to superannuation to turn a short-term cash injection into a long-term win,” he said. <\/p>\n

Aussies urged not to rush tax returns <\/p>\n

The ATO has encouraged people to slow down at the start of tax time<\/a> and has warned rushing to lodge can lead to delays and amendments. <\/p>\n

The ATO adjusted more than 595,000 tax returns due to missing income, overstated deductions and tax credits, and other discrepancies during the 2024-25 financial year. <\/p>\n

For the quickest lodgment, the ATO recommends waiting until late July when most pre-fill information<\/a>, including wages, bank interest, government payments and private health insurance details, is available. <\/p>\n

CPA Australia tax lead Jenny Wong has also urged taxpayers not to rush and to take their time to get it right, ensuring they have the correct documentation for deductions and avoiding estimates where possible. <\/p>\n

“Taking shortcuts or guessing figures can not only lead to incorrect claims but may also result in having to amend your return later,” she said. <\/p>\n

“Spending a bit more time upfront can save time, stress and potential penalties down the track.” <\/p>\n

Waller said most pre-fill information would now be with the ATO, with today the last day for employers to finalise all their payment summaries. Interest from banks and most private health insurance information is now available. <\/p>\n

But he said it was important to ensure you captured all information before lodging. <\/p>\n

“I think a lot of people just jump on MyTax and lodge blindly, and that’s where they see a lot of the errors,” he said. <\/p>\n

Get the latest Yahoo Finance news – follow us on Facebook<\/a>, LinkedIn<\/a> and Instagram<\/a>. <\/p>\n