Still waiting on a

ATO

refund?

The ATO issues tax refunds when you have overpaid income tax during the financial year. Whether you are a PAYG employee, a sole trader, or a low-income earner, your eligibility depends on your total tax liability versus what was withheld.

You are eligible for an ATO tax refund if:

• Your employer over-withheld tax from your wages — when your final tax liability (after deductions and offsets) is lower than what was withheld, you receive the difference.
• You are claiming work-related deductions — allowable claims such as work-from-home expenses, vehicle use, uniforms, tools, and professional education reduce your taxable income. If your deductions bring your liability below what was withheld, you are owed a refund.
• You earned below the tax-free threshold ($18,200) and had tax withheld — low-income earners who had tax deducted during the year are typically entitled to a full or partial refund.
• You are entitled to a tax offset — the Low Income Tax Offset (LITO), the Low and Middle Income Tax Offset (LMITO where applicable), or the Senior Australians and Pensioners Tax Offset (SAPTO) can result in a refund if your offset exceeds your tax liability.
• You are an Australian resident earning below $144,000 in 2025–26 — the $1,200 Cost of Living Tax Offset applies automatically when you lodge, no extra action required.

You must lodge a tax return to receive a refund if you:

• Earned above the tax-free threshold ($18,200)
• Operated a business, including as a sole trader
• Want to claim deductions or offsets that may produce a refund
• Had any tax withheld from your income

You generally do not need to lodge if:

• Your total income was below $18,200 and no tax was withheld
• You receive certain government pensions and your income falls below the threshold. Check the ATO's Do I need to lodge a tax return? calculator to confirm

When a refund will not be paid in full:

• Outstanding government debts — the ATO is legally required to apply your refund to any debts you owe to the ATO, Centrelink, or Child Support before releasing the remainder.
• No bank account details on file — from 1 January 2025, the ATO can hold your refund for up to 90 days if your Financial Institution Details (FID) are not recorded. After 90 days, a cheque is issued instead.
• Return under review — companies, super funds, and some individual returns may have refunds held while the ATO verifies the claimed amount.

Claiming an ATO tax refund means lodging your annual tax return. Here is the full process from setup to receiving your payment.

Step 1: Set Up myGov and Link to the ATO

Create or sign in to your myGov account and link it to ATO online services. This gives you access to myTax and lets you track your refund status at any point.

Step 2: Wait for Pre-Fill Data to Be Ready

The ATO pre-fills most income data (wages, bank interest, dividends, health fund records, and government payments) by late July. Lodge after mid-to-late July to avoid pre-fill mismatches, which are one of the most common causes of ATO tax return delays.

Step 3: Complete and Submit Your Return via myTax

Access myTax through myGov or the ATO app (iOS and Android), available 24/7 at no cost.

• Review your pre-filled income data carefully
• Add any deductions you are entitled to claim
• Double-check all figures before submitting

Step 4: Confirm Your Bank Account Details Before Submitting

Ensure your BSB and account number are current in your ATO profile before you lodge. This is the single most effective way to speed up your ATO refund. Without a valid bank account on file, your refund may be held for up to 90 days or sent as a cheque.

Step 5: Track Your Return Status

After lodging, check the progress of your tax return via myGov or the ATO app. Status stages you may see:

• Return received — lodgement confirmed
• In progress — automated processing underway
• Under review — manual check required (up to 60 days)
• Issued — refund sent to your nominated bank account

Step 6: Receive Your Refund

Most Australian tax refunds lodged online are deposited via EFT within 10 to 14 business days. Allow an additional 2 to 5 business days for your bank to process the deposit.

Lodgement deadline: 31 October for individuals lodging their own return. Registering with a tax agent before 31 October may extend your deadline to as late as May of the following year.

Alternative lodgement options:

• Registered tax agent — lodges on your behalf, may help maximise deductions, and agent fees are tax-deductible
• Paper return — available but slow; processing takes up to 50 business days and is not recommended if you have online access

Processing times vary by lodgement method and return complexity.

Online via myTax: 10–14 business days

Via a registered tax agent: 10–14 business days

Paper tax return: Up to 50 business days

Amended (corrected) return: Up to 20 business days

Return placed "Under Review": Up to 60 days

After the ATO issues your refund, allow 2 to 5 additional business days for your financial institution to deposit the funds.

What speeds up your ATO refund:

• Lodge online via myTax, not by paper
• Wait until late July when income statements are marked "Tax Ready" in myGov
• Confirm your bank account details are current before lodging
• Keep receipts and records ready in case the ATO requests substantiation

What causes an ATO tax return delay:

• Pre-fill mismatches — lodging before employers or banks have submitted their end-of-year data triggers an automated pause
• Large or complex deductions — significant work-from-home, vehicle, or investment claims can prompt manual review
• Missing bank details (FID) — no nominated account means the ATO holds your refund for up to 90 days
• Outstanding government debts — any ATO, Centrelink, or Child Support debt is deducted first, reducing or eliminating your refund
• Under Review status — manual review can extend processing to 30–60 days
• Identity verification — new myGov accounts or changed personal details may require additional checks
• Peak lodgement season — the July to October window sees high volumes; returns lodged in July and August may take slightly longer

The ATO offers two methods for delivering tax refunds in Australia.

• Electronic Funds Transfer (EFT) — strongly recommended. Your refund is deposited directly into your nominated Australian bank, building society, or credit union account. To set this up or update your details: sign in to myGov > ATO Online Services > Profile > Financial Institution Details. The account must be held at an Australian branch and in your name. The ATO only uses stored bank details for refund deposits, not for direct debits.
  
  
• Cheque — issued when no bank details are on file. If the ATO does not have your bank details recorded after holding your refund for 90 days, a physical cheque is mailed to your address. Cheques take longer to arrive and require manual deposit. If your cheque has not arrived, contact the ATO on 13 28 61 or visit the missing tax return refunds page.
  
  

Important restrictions:

• Refunds can only be sent to Australian financial institution accounts, overseas accounts are not accepted
• Joint accounts are acceptable, but the account name must match your tax records
• If your refund is sent to a closed account, the Reserve Bank returns the funds to the ATO within approximately 10 days. Update your bank details in myGov immediately and contact the ATO to request re-issue

• Pre-fill mismatch causing a delay — lodging before your employer, bank, or health fund has submitted end-of-year data to the ATO causes an automated processing pause. Lodge after your income statement is marked "Tax Ready" in myGov (typically mid-to-late July) to avoid this entirely.
  
  
• Return placed "Under Review" — large or unusual deduction claims, particularly for work-from-home hours, vehicle kilometres, or investment property, can trigger a manual review lasting 30–60 days. Respond to any ATO documentation requests promptly and keep all receipts, logbooks, and records.
  
  
• Refund offset against a government debt — the ATO applies your refund automatically to any outstanding ATO tax debts, Centrelink overpayments, or Child Support arrears before releasing the balance. Check your myGov account for debts before lodging. If you believe an offset is incorrect, you have the right to object.
  
  
• Missing or outdated bank account details — without current Financial Institution Details (FID) on file, the ATO holds your refund for up to 90 days. Verify your bank details in ATO online services before the end of the financial year.
  
  
• Refund sent to a closed account — the Reserve Bank returns the funds to the ATO within approximately 10 business days. Update your bank details in myGov and call 13 28 61 to request re-issue.
  
  
• Over-claimed deductions triggering review or penalty — the ATO uses data-matching programs to cross-check income and deductions against employer, bank, and government records. If you spot an error, amend your return proactively. Self-correction before ATO contact avoids interest charges and penalties.
  
  
• ATO impersonation scams — fraudsters send fake tax refund texts and emails to harvest bank details, TFNs, and passwords. The real ATO will never send an unsolicited message asking for this information. Report anything suspicious at the ATO scam alerts page.