How Long Do Tax Returns Take? The Brutal Truth About Waiting for Your Money

Let's face it: waiting for your tax refund is about as exciting as watching paint dry. But unlike paint, which eventually dries, your tax refund seems to exist in a perpetual " processing state." How long do tax returns take in Australia? Buckle up because we're about to dive into the thrilling world of tax return timelines.

The Short Answer: It Depends (Because Of Course It Does)

If you're looking for a quick answer, here it is: most electronically lodged tax returns are processed within 2 weeks. But before planning how to spend that sweet refund money, let's break it down further.

How Long Do Tax Returns Take: The Nitty-Gritty Details

• Online lodgment: 2 weeks (10 business days) for most returns
• Paper lodgment: Up to 10 weeks (50 business days)
• Manual processing: Up to 30 calendar days

Before you start cursing the Australian Taxation Office (ATO) for making you wait, remember that they're processing millions of returns. In fact, during the 2021-22 financial year, the ATO processed over 14.9 million individual tax returns, Which is a lot of paperwork, folks.

Why Your Tax Return Might Be Taking Its Sweet Time

Sometimes, your tax return decides to take the scenic route. Here are a few reasons why:

• You made a mistake: Oops, did you forget to carry the one? Errors can delay processing. The ATO might need to cross-check your information or contact you for clarification.
• You're being audited. The ATO might examine your deductions more closely. Don't panic; it's not always as scary as it sounds. Sometimes, they just need to verify certain claims.
• You have outstanding debts: The ATO might hold off on your refund to offset any debts you owe them or other government agencies.
• It's tax season rush hour: July and August are peak times, so expect delays. The ATO is like a busy restaurant during these months, and your return awaits in line with millions of others.
• You lodged too early: Rushing to lodge on July 1 might seem proactive, but it can actually slow things down. The ATO needs time to receive and process information from employers, banks, and other sources.
• Your tax situation is complex: If you have multiple income sources, rental properties, or unusual deductions, your return might need extra scrutiny.
• Your details don't match ATO records: If your name, address, or other personal information doesn't match what the ATO has on file, it can cause delays.

How to Speed Up Your Tax Return (Without Breaking Any Laws)

While you can't exactly put your tax return on a treadmill, there are ways to speed up the process potentially. Here's how to get that refund faster without risking a visit from the ATO's audit team:

Lodge Online: Welcome to the 21st Century

Ditch the paper and embrace the digital age. The ATO processes most electronically lodged tax returns within 2 weeks (10 business days). Compare that to paper returns, which can take up to 10 weeks (50 business days) to process. It's like choosing between a sports car and a horse-drawn carriage – and in this race, you want speed.

Double-Check Everything: Mistakes = Delays

Take the time to review your return. Common errors that may delay processing include:

• Providing incorrect information (e.g., private health insurance policy details that don't match)
• Lodging duplicate returns for the same year
• Repeating information unnecessarily
• Including irrelevant information from previous years

Remember, the ATO isn't a mind reader. They can't magically know what you meant to put on your return. So, channel your inner perfectionist and scrutinize every detail.

Have All Your Documents Ready

Before you start your tax return, gather all necessary documents:

• Income statements
• Receipts for deductions
• Any other relevant paperwork

Being organized isn't just for Type A personalities – it's for anyone who wants their refund sooner rather than later.

Lodge at the Right Time: Not Too Early, Not Too Late

The ATO recommends waiting until late July to ensure all pre-fill information is available. Rushing to lodge on July 1 seems proactive but can slow things down. The ATO needs time to receive and process information from employers, banks, and other sources.

On the other hand, don't wait until the last minute. The closer you get to the October 31 deadline, the busier the ATO will be, potentially leading to longer processing times.

The Waiting Game: What to Do While Your Return is Processing

Check Your Return Status

Use the ATO app or online services to track your return's progress. The ATO provides various status updates, including:

• In progress – Processing
• In progress – Information pending
• In progress – Under review
• In progress – Balancing account
• Extra processing time is required
• Processed
• Issued – Outcome

Knowing where your return is can help manage your expectations (and your anxiety).

Don't Call the ATO... Yet

Patience is a virtue, especially when it comes to tax returns. The ATO will not respond to enquiries about the progress of your return until 30 days have passed. So, resist the urge to call them daily and ask, "Is it done yet?" They're working on it, promise.

Plan How to Use Your Refund Wisely

While you're waiting, consider how to use your refund best. Some options include:

• Investing it for future growth
• Paying off high-interest debt
• Building an emergency fund
• Saving for a specific goal

Or, if you're feeling particularly rebellious, you could blow it all on a new TV. But remember, in the future, you might not be thrilled with that decision when the next tax bill rolls around.

The Brutal Truth About Tax Return Timelines

Here's the reality: while most returns are processed quickly, there's always a chance yours could take longer. It's like waiting for a bus – just when you think it's never coming, three show up at once. Except in this case, it's your lone tax refund, which is fashionably late to the party.

Remember, the ATO's service commitment is to process 94% of electronic tax returns within 12 business days. But that still leaves 6%, which might take longer.

And if you're in that 6%, you might be in for a bit of a wait. So, what can you do? Double-check your information, lodge when all your pre-fill data is available, and maybe practice deep breathing exercises. Because in tax returns, patience isn't just a virtue – it's a necessity.

Frequently Asked Questions: