Our accountants faced this tax-related question a lot last tax season – Where is my refund?”
We thought to provide a simple explanation for our refund process, as well as provide the estimated timings.
- When you lodge your tax return on our system, it is sent to the Australian Taxation Office (ATO) for review. The average processing time for the ATO takes to process a tax refund is 14 business days.
- After finishing the process of review of the Tax Return, they issue a Notice of Assessment to you, to inform you if there are any changes to the refund amount, and provide the exact figure of your Tax Refund/Payable.
- In case you have chosen our Fee from Refund option, the refund will then be sent to our Trust Account. We will then direct deposit your refund back to you within 24 business hours, after deducting our service fees. Depending on which bank you use, this direct deposit could take anywhere between a couple of hours up to 2 business days.
Why I am not getting the Tax refund within 14 days?
Here are a couple of reasons why this might be the case.
- One reason could be if you lodge an Overdue Tax Return. The ATO prioritize current year Tax Returns before processing any overdue ones from prior years, which may lead to slower processing time.
- Be ready to wait for more if you have lodged an Amended Tax Return. The ATO takes more time to process since they bring up the original lodgement and compare the differences between the two, to finally confirming if the changes made are legitimate.
- Last but not the least, if you lodge a Paper Tax Return via post, it would obviously take a longer time to reach the ATO than if it is lodged electronically. The ATO would also take a longer time to manually process the Tax Return.
In general, most of our clients receive their refunds faster than 14 business days. So you need not to worry. There might be delays in bank transfers or ATO processing due to above-mentioned reasons. But, we do our level best to send your refund out within 24 business hours of it entering our Trust
Account. In case of any further queries, write to us in the comment box below or make a call to KPG Taxation experts. You can seek professional help from KPG Taxation experts to save more on tax.
Call us today or contact us through our website: https://www.kpgtaxation.com.au/contact-us/
Visit the KPG Taxation blog for current updates on Taxation related news in Australia. https://www.kpgtaxation.com.au/blog/
For ATO news updates, visit: https://www.ato.gov.au/Whats-new.aspx?marketsegment=Entire%20Website