Can You Fix a Mistake on Your Tax Return? (Short Answer: Yes)
If you’ve made a mistake on your tax return ,whether it’s missing income, incorrect deductions, or simply an honest typo ,don’t panic. The good news is that you can amend your Australian tax return, even if it’s already been lodged and processed by the Australian Taxation Office (ATO). In most cases, it’s straightforward and can be done online through the ATO’s systems.
In this article, we’ll guide you step-by-step through when, why, and how to amend a tax return, what to expect during the process, and common questions Australians have about fixing tax return errors.
Why You Might Need to Amend a Tax Return
Amending a tax return is common, and there are several reasons why people might need to do it. Some typical situations include:
Omitting Income
You may have forgotten to include income such as bank interest, dividends, rental income, or income from a side business.
Incorrect Deductions or Offsets
Perhaps you claimed a deduction you weren’t entitled to, or you missed deductions like work-related expenses, donations, or self-education costs.
Changes After Lodgement
Your employer might issue an updated Payment Summary (Income Statement), or you might receive a delayed invoice, altering your income or expenses.
Clerical Errors
Simple typos, incorrect numbers, or selecting the wrong boxes on the form are surprisingly common and valid reasons to amend.
When Should You Amend a Tax Return?
You should consider amending as soon as you discover the mistake. The ATO generally allows up to 2 years from the date of your original Notice of Assessment to make an amendment (for most individuals and sole traders).
However, if you’re outside the 2-year amendment period, you may still be able to request an amendment under the ATO’s discretion ,but it’s less straightforward.
Tip: If you’re unsure about the timing, speak to a tax agent to avoid missing deadlines.
How to Amend a Tax Return in Australia
Option 1: Amend Online via MyGov (For Individuals)
Most Australians can amend their return using MyGov, linked to the ATO. The process typically takes less than an hour.
Steps:
- Log in to MyGov and access the ATO portal.
- Select ‘Lodgements’ > ‘Income Tax’ > ‘Amend’.
- Select the relevant year.
- Make the necessary changes.
- Review and submit the amendment.
Option 2: Through a Registered Tax Agent
If you lodged your return through a tax agent, or if the amendment is complex, your agent can submit an amendment on your behalf. This is often the safest approach, especially when multiple years or complicated adjustments are involved.
Option 3: Paper Amendment Form (Less Common)
While rarely used today, you can still lodge a paper amendment by completing the ‘Request for amendment of income tax return’ form and posting it to the ATO.
What Happens After You Lodge an Amendment?
The ATO will process your amendment and issue a Notice of Amended Assessment. The processing time is usually 20 to 56 days, depending on whether it was lodged online or via paper.
If You Owe More Tax
The amended notice will show the additional tax payable, including any interest. The ATO will provide a due date for payment.
If You’re Due a Refund
If the amendment results in a refund, it will usually be paid directly to your nominated bank account.
If There’s No Change
Sometimes, the amendment doesn’t alter your tax outcome. The ATO will still issue a Notice of Amended Assessment showing no change.
Common Questions About Amending Tax Returns
Will I Get Penalised for Amending?
No, you won’t be penalised simply for correcting a genuine mistake. Penalties only apply when mistakes are reckless, intentional, or involve fraud.
Does It Trigger an Audit?
Amending a return does not automatically trigger an audit. However, consistent or major errors might increase the likelihood of a review.
Can I Amend Multiple Years at Once?
Yes, but each year must be amended separately. If you are outside the standard 2-year window, you may need to apply for the ATO to exercise discretion.
What if I Need Help?
Consider using a registered tax agent, especially if you are unsure about what needs correcting or if the amendment is complex.
Final Thoughts
Amending a tax return is a normal part of managing your tax affairs and shows you are proactive about getting things right. As long as you act within the amendment period and provide accurate information, the process is straightforward.
Whether it’s a small oversight or a larger adjustment, fixing mistakes can save you from future headaches with the ATO.
If you’re unsure, working with a qualified tax agent can give you peace of mind and ensure you meet all your obligations.
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