It can be frustrating for you to wait for your tax refund. But you need to keep it in mind there might be delays in ATO or Australian Taxation Office, especially during July. It’s because ATO processes the finances of the entire nation during July. It’s pretty incredible when you think of about it.
Even when you have an excellent Individual Tax Return the refund will get approved within 12 working days when you apply it online. But on certain occasions, it can take up to 50 days for the refund to process. The tax refund gets delayed for plenty of reasons. To know what the reasons are, check the information below.
What are the reasons behind the tax refund delay?
Many reasons cause the refunds for the Income Tax Return to get delayed. The reasons are:
- When you lodge a tax return on your own or with the previous year’s return.
- If you have debt.
- The refunds also get delayed with the ATO has to check information with the Australian Government agencies, such as Child Support Program or Centrelink.
- Your refunds will get delayed when ATO carries more details than you have provided.
- If you have added massive or unusual deductions and the ATO has picked up anomalies.
- There will also be a delay within the tax refund if there is a spelling mistake in your name.
- When your date of birth is different from the previous year’s tax return, the tax refund will get delayed.
- When the bank account you provided is incorrect, the tax refund will be delayed.
How long does it take for the tax refund to process?
In general, the processing time for the tax refund is pretty fast. The online tax returns are fastest as the ATO approves them within two weeks. But on certain occasions, it can be expected that the majority of returns will get processed within 10 days right after the lodgement of the tax return for 2020. But many individuals have to wait for the ATO to get the job done.
The paper returns to stand out to be the slowest because it takes around 10-weeks. If you want the tax returns immediately and wish to avoid the delays from ATO, you need to provide accurate details and information. You need to prepare all your receipts beforehand and get to claim all the eligible tax deductions. Doing so will help you avoid all the ATO complications, which might slow down the refund.
What to do when the tax return is delayed?
If your tax return is getting delayed, you must wait for, 30 days from the lodgement of your tax return. Until one month has passed, the ATO will not look into any enquiries related delayed refunds. Once one month is complete, you can get in touch with a professional Tax Accountant Perth, and he/she will contact the ATO about your delayed refund. The accountant will also represent you in front of the ATO if they require any additional details before they finalize your tax returns.
Can you check the progress of your tax return?
In short, you can. There are many ways through which you can track down the progress of your tax refund with no issues. Look below!
- Check it online: If you have a myGOV account connected with ATO, you can check the tax amendments and returns. You can also view your lodgement for the prior financial years and the current year. You can create a myGOV account if you do not have one. Once you made your account, choose Manage Tax Returns from the homepage and then you can click on the financial year you want to check.
- Check with your tax agent: If you took the help of a registered Tax Accountant to lodge your tax returns, you can ask the accountant to check the status of the return. Otherwise, you can check it on your own. The tax professional will keep you updated with the progress whenever you want. They will provide you with accurate information on your tax return progress.
- Check through the phone: In Australia, checking the status of the tax return through the phone is pretty simple. All you have to do is type in the numbers 13 28 65 and then choose option 1 and then again option 1. You will immediately get all the details of your tax return without any delay.
How will the ATO notify you about your returns?
The ATO takes the help of Email or the SMS services to notify you about any information related to your tax return. They will also send you an SMS or an email to let you know about when you will receive your return, and if your tax refund or return got delayed and why.
Nobody likes to wait to receive their tax returns. For such reasons, you want to receive your returns or refunds quickly you need to avoid unwanted mistakes or errors when lodging your tax returns. Get in touch with a good tax professional if you cannot lodge, or do not know how to lodge the tax return. Doing so will surely help you receive your returns on time.