Tax warning for millions of Australians rushing to lodge returns - as expert reveals the costly mistake that could delay refunds

By KYLIE STEVENS, SENIOR BREAKING NEWS REPORTER, AUSTRALIA Published: 06:37, 9 July 2026 | Updated: 06:37, 9 July 2026 Millions of Australians have been urged to take their time completing tax returns to avoid costly mistakes. While many may be eager to lodge their 2025-26 returns promptly after July 1 in the hope of receiving any possible refunds as early as possible, rushing the process can lead to errors and increased exposure to fraud. The best time to lodge a return is generally no earlier than the end of July, according to the Australian Taxation Office (ATO).  'Getting your tax return done early can be tempting, but it's important not to rush,' accounting body CPA Australia's tax lead Jenny Wong said. 'Waiting until all your income information has been finalised and pre-filled by the ATO will help ensure accuracy and reduce the risk of errors that can trigger reviews or delays.' In the first three weeks of July 2025, 2.8 million individual tax returns were lodged - a four per cent drop from 12 months prior, according to the ATO. By mid-August, this figure had grown to five million, which was also down from the previous year. 'This suggests more taxpayers may already be taking a more cautious approach, which is encouraging,' Ms Wong said. Rushing to lodge a tax return early can lead to errors and increased exposure to fraud, according to CPA Australia tax lead Jenny Wong (pictured)  Taxpayers need to ensure they have the correct documentation for deductions, and avoid estimates where possible. More than 595,000 tax returns from the 2024-25 financial year had to be adjusted due to missing income, overstated deductions and other discrepancies, according to the ATO. Those who lodge before pre-fill data is available are more than twice as likely to need amendments. 'Taking shortcuts or guessing figures can not only lead to incorrect claims but may also result in having to amend your return later,' Ms Wong added. 'Spending a bit more time upfront can save time, stress and potential penalties down the track.' Tax time is a peak period for scammers, who use email, text messages and phone calls to impersonate the ATO or tax agents to trick people into handing over personal information or money. This can be avoided by not clicking on unsolicited links or providing sensitive information in response to unexpected communications.  'If something doesn't seem right, pause and verify the source,' Ms Wong said.  More than 595,000 tax returns from the 2024-25 financial year were adjusted due to missing income, overstated deductions and other discrepancies, according to the ATO  'Access official services through the ATO website or app, or contact your registered tax agent directly. 'With increasingly sophisticated scams, a moment of caution can prevent significant financial harm.' Using a registered tax agent is highly recommended if you are unsure about your obligations or have a more complex financial situation. 'Professional advice can provide peace of mind and help ensure you are complying with the rules while claiming everything you're entitled to,' Ms Wong added. 'Ultimately, a careful and informed approach is the best way to achieve a correct and timely outcome this time.'