How Long Does a Tax Refund Take in Australia? A Complete Guide

Can’t stop checking your phone for that tax refund notification? You’re not alone—most Aussies experience the same every tax season.

Tax refund is your hard-earned money paid in excess to the government than you actually owe. It is deducted from your paycheck, and reimbursed when the government calculates applicable taxes at the fiscal year end.

For most people, tax refund feels like a budget booster that stretches the budget a little more. It’s the money that goes toward catching up on bills, booking a much-needed holiday, or party.

Every year between July and October, millions of Aussies jump into the ATO system to file their tax returns. Some do it early in July while others take their time and file closer to the October deadline. But regardless of when you hit “submit,” the most asked question is: How Long Does It Take for a Tax Refund to Show in Your Bank Account in Australia?

The answer depends on when you filed your tax returns. If you use myTax, refunds usually land within about two weeks. Moreover, if you filed through a tax agent, the refund may take longer due to multiple factors.

Follow to check what affects your refund timeline and how to make the wait as short as possible!

Typical Processing Times

Understanding the typical processing times for refunds will help you determine whether your refund is delayed. The processing time usually depends on how you lodge the tax return.

Online Lodgment via myTax or Registered Tax Agent

Did you take the easy method to file your return? Online lodgement via myTax or a registered tax agent are both seamless processes for filing tax returns. They allow you to get your tax refund within 10 to 14 business days.

Paper Lodgment

Paper lodging is a time-intensive and manual process. Once you file the tax, it takes quite some time to be updated on the system. The refund process starts after and can take up to 50 business days due to manual handling.

Review Case

Sometimes, the income tax return goes into review due to any discrepancy. The Australian Taxation Office (ATO) manually reviews the data, which can take up to 30 days. The refund is processed after the lodgement and can take several months.

Factors Influencing Refund Timing

Is your tax refund delayed? There can be multiple reasons for the delay. Note that not all refunds are delayed. It depends on case to case. Let's explore common issues that affect refund timing. See if you can identify the cause of the delay.

Complexity of Return

Complex returns with multiple sources of income, excess deductions, and investments take more time to process. Such tax returns have to go through a strict review process with manual verifications. Therefore, the refund takes longer than usual. However, a simple tax return with regular income and deductions is processed quickly.

Accuracy of Information

Accuracy is critical to processing tax returns and, subsequently, tax refunds. Any minor error can delay the process from days to weeks. Simple errors like misspelled names or mismatched dates of birth can cause delays. Moreover, missing or incorrect information, such as incorrect bank account details or missing information, can also delay processing.

Outstanding Debts

If you are to repay any debt to ATO or government agencies, your refund will be withheld. The refund will be processed after you clear the debts. The refund is not processed immediately after you clear the debt. The time frame varies from case to case. You must check with the ATO office to see if your refund has been withheld due to outstanding debt.

Verification Checks

Any discrepancy in the tax return will initiate a review. The ATO will run additional checks to verify the income, deductions, etc. Your tax refund will be withheld until the verification is complete. Further delays will be created if the checks involve other government agencies, such as Centrelink or the Child Support Program.

Additionally, the ATO sometimes selects random tax filers for audit. If you are lucky enough to be chosen for an audit, your refund will be delayed.

ATO Tax Return Status Indicators

Considering the taxpayers anticipation for refunds, ATO offers an online service to check refund status. You can log into myGov portal to see where your refund has reached. Let’s explore different stages of refund for better understanding.

Your tax agent also has access to review the details and inform you of the status.

In Progress – Processing

If your refund status shows “In Progress – Processing,” it means the refund is in process and you’re required to wait. Usually, no action is needed at the stage. The process is completed at ATO’s end.

In Progress – Information Pending

The ATO is collecting additional information. It means your income details, investments, family details, and other information is being collected for review. You may be contacted to provide further information.

In Progress – Under Review

A manual review is underway. At this stage, a representative from the ATO office will review your previous returns before processing the refund. It’s the most time-consuming process and can lead to delays in case of discrepancies, errors, and inaccurate information.

In Progress – Balancing Account

Reconciling your return with ATO records. The ATO crosscheck records and finalizes the details before processing the refund. It indicates that you are all set to receive the refund. The amount and payment status indicated in the next stage.

Issued – $ Amount

The last stage of the process confirms the payment and the total amount you will receive as a refund. The due date of the payment is also mentioned. You can expect the payment to show in your account before the due date. Typically, your bank account is credited within five business days after this status appears.

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Key Factors That Affect Refund Timing

Refund timing is affected by a number of reasons. The timing of the return lodgement often defines the refund timeline. If you lodge early in July, especially before your income statement is marked “tax ready,” you could face delays due to missing data. On the other hand, lodging during the peak period (late July to early August) also slows the process.

Another major factor is completeness and accuracy. If you forget to include some info or make a typo, like the wrong bank details or missing income, the return is queued for manual checks. The ATO uses data matching from employers, banks, and other third parties. If something doesn't line up, your return could be flagged for additional review.

Moreover, liabilities to government agencies can cause your refund to be withheld. The refund could be used to offset those before anything hits your bank account. All of these factors contribute to delays in receiving tax refunds. If your return is delayed, any of these factors can be the culprit.

How to Check the Progress of Your Tax Return

Do you want to stay updated on your tax return status? There are multiple ways to track your return progress. Here are the most convenient ways to check your tax lodgement status.

myGov Account

You can link your myGov account to the ATO to monitor your return status. The process is simple: use the "link a service" tab and select ATO from the list. It will ask you to verify your identity and get access to your tax returns.

You can use the Income Tax tab to view all your income tax details. It shows tax records, return status, super, and more. The tax refund status whether it's processing, under review, or issued is also available in the tab.

ATO App

ATO has a user-friendly mobile app to get real-time updates on your tax return. It is available on the Android Play Store and iOS App Store. You can log into the app through your myGov account. It shows your return status, estimated refund date, super balance, and even lets you update your details.

The ATO app syncs with your myGov account, so the info is always up to date. You must link the myGov account with ATO to access this service. If you’re anxious about your tax refund, you can conveniently track the progress using the ATO app.

Contacting the ATO

The ATO discourages unnecessary correspondence and requests taxpayers to reach out for assistance only in case of severe delays. You should contact ATO in case the refund is delayed for more than 30 days. Here are the normal refund timelines depending on how you lodged the tax return:

If the refund is delayed beyond these timelines, you may contact the ATO to inquire about details. You can also ask your tax agent to make the inquiry. The ATO office may ask you to provide additional documentation or produce any proof of income, etc.

Tips to Expedite Your Tax Refund

Do you want to reduce the wait time in receiving tax refunds? It’s possible if you take some preemptive measures. Here’s how you can expedite your tax refund:

Lodge Electronically

Electronic tax lodgements are processed faster than paper returns. If you file your tax return online using myTax, you can expect a refund within two weeks. The ATO processes digitally lodged returns faster.

Ensure Accuracy

Errors and inaccurate info can cause serious delays. Returns that have errors or incorrect info goes into manual review. Such returns go through scrutiny and require additional checks. It would take ages to get the income tax return filed. You must double check the information before hitting the submit button. It will save you from unnecessary hassle.

Update Bank Details

Always share updated bank details when receiving the refund. If you mistakenly use an old or unaccessible account, the funds must be diverted to your new account. The process will again go to the ATO, which will take ages to complete. So, ensure that bank details are updated and correct before submitting the income tax return.

Avoid Early Lodgment

Never haste in the income tax return filing process. It does no good but can affect your refund timeline. To prevent processing issues, you should wait until all income statements are finalized. The best time to file a return is after July 15–20. It marks the end of the fiscal year, and all of your income statements are settled by then.

Avoiding early lodgment doesn't mean you should delay the filing process. It just means doing it in a timely manner to avoid wait times.

What to Do If Your Refund Is Delayed

If your refund is delayed, be patient. The process is time-consuming and involves multiple steps, from verification of income sources to cross checking your data. Here's what you can do if your refund is delayed:

Wait Period

As discussed, your tax refund primarily depends on how you lodged your return. If you lodged your tax returns using myTax, the refund will be received within two weeks. However, if you choose paper lodgement, the refund can take 10 weeks to arrive in your bank account.

Always check the timeline for refunds before taking action. The ATO advises waiting at least 30 days before inquiring about delayed refunds. The ATO will likely contact you if your refund exceeds the given timeline. There's no need to haste; you should complete the wait period and seek assistance.

Seek Assistance

Have you been waiting too long for the refund? You can always seek assistance from the ATO. The only condition is that you complete the wait period. Otherwise, the ATO will ask you to keep patience and ensure your refund arrives within the given time frame.

If you used a registered tax agent to lodge a return, ask them to inquire on your behalf. They may already have insights or updates directly from the ATO. In other cases, if you used myTax to lodge a return, you should contact the ATO directly through your myGov account or by phone.

When contacting ATO, you should keep the following information with you:

1. Your Tax File Number (TFN)
   

2. The date of lodgment
   

3. Any ATO correspondence via myGov
   

4. Your Notice of Assessment (if received)

The ATO may inform you that your return is under review or awaiting further checks. There can be an adjustment notice if changes were made to your return. Your refund could have offset any outstanding debts (like HECS/HELP, Centrelink, or child support). Moreover, you may be asked to submit additional documents or verify specific claims.

FAQs

How long does it take for a refund to show in the bank account after approval?

The timeline for a refund depends on how and when you applied for the tax refund. The standard processing time for a refund is from two weeks to 4 weeks.

How can I check my tax refund status?

You can check your tax refund status online using myGov portal. You must link your ATO account to the portal to access tax-related information.

What if I made a mistake on my return?

If you made a mistake on your return, the ATO will likely contact you in the processing stage. You can also contact the ATO if the refund is not processed even after the given timeline.