The Australian Taxation Office (ATO) has issued a reminder for taxpayers as the deadline for lodging individual tax returns quickly approaches. With more than 4.8 million refunds worth $12.7 billion already processed, millions of Australians are still yet to file their returns.
If you haven’t lodged yours yet, now’s the time to get organised—or risk late penalties.
When Do You Need to Lodge Your Tax Return?
Australians can start lodging their tax returns from July 1 each year. But for those doing it themselves, the cut-off date is October 31.
If you choose to lodge through a registered tax agent, you get an extension until May 15 next year, provided you’re on their client list before October 31.
Missing the deadline could be costly.
What Happens If You Lodge Late?
The ATO issues a Failure to Lodge on Time (FTL) penalty if you miss the deadline.
- The penalty starts at $330 for every 28 days late.
- It keeps increasing until it reaches the maximum of $1,650.
That means even if you’re due for a refund, lodging late could eat into your payout.
How Much Are Aussies Getting Back in Tax Refunds?
So far this year, the average tax refund is $2,639 for individuals.
Small businesses have received bigger returns, averaging around $5,000. According to Commonwealth Bank data:
| State/Territory | Average Business Refund |
|---|---|
| ACT & QLD | $5,700 |
| Victoria | $5,300 |
| NSW | $4,900 |
| WA | $4,800 |
These figures highlight how much money is flowing back into the economy—but also why lodging on time is so important.
Why You Should Prepare Early
According to tax experts, your refund next year depends on the financial habits you’re building right now.
Belinda Raso, director at Tax Invest Accounting, said September and October are key times to get organised:
- Keep track of work-related expenses (uniforms, tools, travel).
- Record charity donations for potential deductions.
- Review your investment income and offsets.
- Consider adjusting your PAYG withholding if you want a smoother tax outcome next year.
Planning early means fewer surprises when tax season arrives.
Should You Use AI for Your Tax Return?
With the deadline looming, some Aussies might consider using AI tools like ChatGPT to speed up the process. But experts and the ATO urge caution.
- Professor Michael Walpole (UNSW) warns AI may misinterpret deductions, leading to penalties.
- Associate Professor Sam Kirshner adds that AI often relies on older rules and may miss new compliance changes.
- ATO Deputy Commissioner Jeremy Hirschhorn stressed that small differences in circumstances can change tax outcomes, making AI unreliable.
The safest option? Lodge via myTax on the ATO website or work with a registered tax agent.
Tips for Lodging Your Tax Return
- Double-check pre-filled info in myTax (income, health insurance, interest).
- Keep receipts for at least five years in case of an ATO review.
- Use the ATO app to track expenses throughout the year.
- Don’t rush deductions—claim only what you’re entitled to.
- Seek professional help if your finances are complex.
FAQs About the 2025 Tax Deadline
1. When is the tax return due in Australia for 2025?
For self-lodgers, the deadline is October 31, 2025. If you use a registered tax agent, you may have until May 15, 2026, provided you sign up before the October deadline.
2. What happens if I miss the deadline but I’m due a refund?
You can still lodge, but the ATO may fine you. The penalties apply even if you’re owed money.
3. How long does it take to get a refund?
Most refunds are processed within 2–3 weeks when lodged online. Paper returns take longer.
4. Can AI or chatbots help me do my tax return?
AI can explain tax concepts, but it should not replace professional advice. Always cross-check information with the ATO or a registered tax agent.
5. What is the average refund this year?
The average individual refund is $2,639, while small businesses are receiving around $5,000.
Final Thoughts
The ATO’s October 31 deadline is fast approaching, and delaying could cost you in penalties. Whether you do it yourself through myTax or hire a professional, the key is to act early and lodge on time.
By keeping records now and planning ahead, you’ll set yourself up for a smoother tax season next year—and possibly a bigger refund.