You’ve just lodged your tax return and are starting to look forward to the moment your refund is credited. Whether you filed electronically or on paper, you’re concerned about the time it takes the Australian Taxation Office (ATO) to process your return. So how long does tax return take? Let’s take a look at the factors that affect the speed of tax processing and how you can speed up the process and get your refund sooner.
How long does it take for tax return in Australia?
In Australia, the processing time for tax returns varies depending on the method of lodgment.
Online Lodgment
Most tax returns lodged electronically are processed within 12 business days, making this the most efficient method of lodgment. Many taxpayers receive their refund within two weeks. Using an online platform like myTax or engaging a registered tax agent can speed up the process.
Paper Lodgment
Paper lodgements take longer to process, often up to 50 days (about 10 weeks), as paper forms need to be manually processed and verified. Delays can occur during peak tax periods (July to October) when the ATO processes a large number of refunds. Lodging a tax return outside of these peak periods can help speed up the process.
What Affects the Speed of Tax Return Processing?
How long does a tax return take? It isn’t just about when you file, it can also be influenced by several factors. Here are some common reasons why your tax return might take longer to be processed:
Peak Lodgment Periods
During peak periods (July and August), the Australian Taxation Office (ATO) is like a large shopping mall during the sales season. At this time, many customers will flock in, and the shops in the mall will be busy processing a large number of orders, and there will be long queues at the checkout. Similarly, during peak tax return season, the ATO needs to process a large number of tax returns, so efficiency will be affected, resulting in longer processing times, just as the shopping mall becomes more crowded during the discount season due to the large number of people.
Outstanding Tax Debts
If you have outstanding tax debts, the ATO will take longer to process your tax return or offset your refund against these debts.
Missing or Incorrect Information
Providing incomplete or incorrect information will delay the processing of your tax return. This includes missing income details, incorrect deductions or not including the required supporting documents. Even if your name, address or other personal information does not match the information on file with the ATO, this can also cause delays.
Audit or Review
If your tax return is flagged for review or audit, the ATO will need more time to investigate discrepancies or verify the information provided, which can significantly delay processing time. Don’t worry, it’s not as scary as it sounds, sometimes they just need to verify certain claims.
Incorrect Bank Account Details
If you provide incorrect bank account details for a refund, it can cause delays in receiving your refund. The ATO needs to resolve the issue before processing and issuing the refund.
How to Track Your Refund Status?
Using myGov Account
Log in to your myGov account and link it to Australian Taxation Office (ATO) services. Once linked, click on “Australian Taxation Office” under the “Services” section on the myGov homepage. In the “Australian Taxation Office” section, select “Tax” and then find the option that shows your tax return status. You can see if your tax refund is still being processed or has already been issued.
Using the ATO App
This is a very convenient way to do this, and you can do it by simply downloading and installing the ATO app on your mobile device. Then log in to the app and, once you have logged in, navigate to the “Tax” or “Tax Return” section. It will display your current tax refund and refund status. If your tax return has been processed, you will see details about the refund and when it will be paid. If not, the app will indicate whether it is still being processed or if there are any issues.
Check Your Bank Account
If your tax refund has been processed, the ATO will transfer it to the bank account you specified. Check your bank account regularly to see if the refund has been deposited.
Call the ATO
If you are unable to track the status online or have concerns, you can call the ATO’s official contact number. Feel free to call the automated service to get the latest news on the status of your tax refund.
Tips for a Faster Tax Return
- Check for Tax Breaks or Rebates: Ensure you know of any tax breaks or rebates you may be eligible for. For example, purchasing a solar generator may qualify you for clean energy or renewable energy tax credits. Applying for eligible rebates can improve your tax refund situation and may speed up the tax refund process.
- Lodge Your Tax Return Early: Lodge your tax return early to avoid delays during peak periods. The sooner you lodge, the sooner your return will be processed.
- Lodge Online: Lodge your tax return online via myGov or using the ATO app. Lodging your tax return online is faster and more efficient than lodging a paper return and will take less time to process.
- Double-check your information: Double-check all your details, including personal information, income claims and deductions, to ensure they are accurate. Missing or incorrect information may delay processing and lead to potential problems with your return.
- Use pre-filled data from the ATO: The ATO provides pre-filled data for many items such as your income, interest and deductions. Using this data can speed up processing.
- Avoid Complex Claims: Keep your claim simple and straightforward. If you are claiming a complex deduction, make sure you have all the necessary documentation ready as these can take longer to process.
- Have the Evidence Ready: Prepare and organize your receipts and any evidence to support your deductions. This will help avoid delays if the ATO needs to verify any information.
- Use a Registered Tax Agent: If you are unsure or have a complex tax return, consider using a registered tax agent. They can help ensure your return is submitted accurately, which can speed up processing times.
- Check for Tax Breaks or Rebates: Make sure you are aware of any tax deductions or rebates you may be eligible for, such as the Low and Moderate Income Tax Credit or Tax Offset for Specific Expenses. Claiming eligible refunds can improve your tax refund and may speed up the refund process.
How to get solar power tax breaks in Australia? (Product in this section)
There are various ways to receive tax credits or incentives for solar power in Australia when installing a solar system. These solar power incentives tax breaks are intended to encourage the use of renewable energy and reduce carbon emissions.
Small-scale Renewable Energy Scheme (SRES)
Under the Small-scale Renewable Energy Scheme (SRES), solar power systems can be installed to receive Small Technology Certificates (STCs). These certificates can be exchanged for financial benefits, effectively reducing the upfront installation costs. To be eligible, the system must be installed by an approved supplier and meet specific technical specifications.
Note: While the SRES primarily targets permanent solar generator installations, some state programs may offer incentives for battery storage solutions. It’s essential to verify whether portable units like the EcoFlow DELTA Pro Portable Power Station qualify. For instance, South Australia’s Home Battery Scheme provides subsidies for home battery systems, which could potentially include portable solutions if they meet specific criteria.
Goods and Services Tax (GST) Refund
If you purchase solar panels through a business entity or as part of an investment property, you may be able to claim a refund of the 10% GST included in the installation cost. This only applies if GST is registered and the solar system is used for commercial purposes.
State-Based Incentives
You just need ensure install a solar power generator for home. Some states offer additional rebates, grants or incentives for solar power facilities, usually in addition to federal incentives such as the STC. These include
- State government tax rebates (e.g. Victoria, New South Wales or South Australia).
- Feed-in tariffs (FiTs), where you are paid for the excess electricity generated by your solar system that is fed back into the grid.
Solar Loan Interest Deduction
If you finance your solar system through a loan, you can deduct the interest on the loan as part of your investment property tax deduction, provided the solar panels are used to power rental properties. This deduction can reduce your taxable income because you can claim a deduction for the interest on the loan for the system.
Tax Offsets and Rebates for Low Income Earners
If you are eligible for a low-income tax credit or rebate, your solar power system may help you qualify for certain energy efficiency programs or rebates to reduce energy costs.
Conclusion
You have know how long does tax return take. Unfortunately, these figures only represent half the picture. Overall, tax return processing times vary based on filing method, peak tax periods, completeness of information provided and other factors. You can significantly shorten them by choosing an efficient filing method and submitting early. If you want to claim tax deductions for energy-saving investments, tax incentives like those for solar power systems offer another opportunity. Knowing these tips will ensure your refund arrives as early as possible. Keep an eye out on home solar panel price in 2025 and Australia’s energy-efficient and eco-friendly incentives policies to increase your tax return by installing one in your home.
FAQs
Can I track my tax refund status?
Yes, you can track your tax refund status. The best way to do so is through the ATO app or ATO online services via your myGov account.
Will my refund be delayed if I claim deductions?
Don’t worry! Claiming the deduction on your Australian tax return won’t delay your refund. But if the Australian Taxation Office (ATO) thinks the deduction is unusually high or wrong, they’ll have to check your tax return by hand, which will make it take a bit longer.
When is the best time to lodge my tax return?
In Australia, the best time to file your tax return is from late July. By then, most of the financial information you receive from your employer, bank, health fund and government agencies will be automatically pre-filled into your return, so you can reduce the error rate and simplify the filing process.
The Australian Taxation Office (ATO) also recommends not rushing to lodge on 1 July, as early lodgers are twice as likely to make mistakes due to missing information. If you prefer to prepare your tax return on your own, please remember that it must be lodged by 31 October each year.
Can the ATO contact me about my tax return?
Yes, the Australian Taxation Office (ATO) may contact you regarding your tax return. The ATO will initiate contact through official channels, including letters, phone calls or secure messages sent through your myGov account. They may do so to verify information, resolve discrepancies or request additional details to ensure the accuracy of your tax return.