What is the ATO Tax Refund?
When we file taxes in any country, like Canada, the USA, or Australia. The government already has access to our income and pay stubs. If we pay taxes according to our sophisticated income, the ATO calculates the tax we paid and refunds any extra amount paid by us. If we have paid less than we owe, then we need to pay the difference. So, in both cases, we need to maintain the taxes ideally.
Key Dates for the 2025 ATO Tax Refund
Lodgement Deadlines for Individuals and Trusts
| Lodgment Deadline | Applies To |
|---|---|
| 31 October 2025 | Individuals & trusts with prior-year outstanding or prosecuted clients |
| 31 January 2026 | Taxable large/medium trusts (> $10M income) |
| 28 February 2026 | Non-taxable or new large/medium trusts |
| 31 March 2026 | Individuals & trusts with prior-year tax liability ≥ $20,000 (excl. large) |
| 15 May 2026 | All remaining individuals & trusts are not eligible for earlier or concession |
| 5 June 2026 (Concession) | Extended deadline for the 15 May category, if paid by this date without penalty |
How to get your ATO 2025 Refund Faster
While all of us eagerly wait for our income tax filing each year, and then for our refunds. While the Australian tax office, aka ATO, usually issues 2- 14 days after filing, we can assure a quick refund by following a certain set of rules.
1. Lodge Early: While lodging your tax early is a good measure. You need to make sure that the filing is accurate. This can help you get your submissions done before the peak season and get a quick refund, but if you have errors in your filing, then we can see vice versa of the same because errors might lead to unforeseen delays. You should wait till the bank, employer, and other institutions you are connected to have filled their information about your financial resources in the ATO pre-filing system.
2. Avoid Mismatched or Missing Information: When filing taxes, people often mismatch the information or miss something in the hurly-burly of submissions. This usually includes spelling mistakes in the name, Outdated Contact information, missing PAYG Submissions from last year, or incorrect total income. Make sure to cross-check the figures from your bank statements, pay slips, and investments, if any.
3. Using Direct Deposit: The bank information should be correct when you submit it for tax refunds, and if you prefer to have a cheque issued, then the process might be slower than expected because the cheque issuing, submitting, and clearance are a whole new process on their own.
Eligibility – Who Can Get an ATO Tax Refund 2025?
If any taxpayer has paid more than they owe, or the money was deducted from their pay stubs, then they are likely to get a tax refund. Keep in mind that Overseas residents with Australian income, and special categories like students, part-time workers, or retirees who may be eligible due to offsets or low taxable income.
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Salary earners – Most PAYG employees who have deductions or offsets.
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Freelancers & sole traders – Those who’ve overpaid instalments or have business deductions.
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Overseas residents working in Australia – If tax was withheld, but the final liability is lower.
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Special cases – Students, part-time workers, and retirees who qualify for tax offsets or have low taxable income.
How to Claim Your Tax Refund in 2025 – Step-by-Step Guide
Step 1 – Gather All Records
Before you even log in, collect every piece of information you’ll need:
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PAYG payment summaries from your employer (often pre-filled in myGov by late July).
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Receipts for deductions such as work-related expenses, uniforms, tools, training, or union fees.
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Bank statements for interest income.
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Private health insurance statements (if applicable).
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Investment records – dividends, rental income, or capital gains.
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Any other income documents – gig work, freelancing, overseas earnings.
Step 2 – Lodge Online via myGov
The easiest and fastest way to claim your refund is through the myGov portal linked to the ATO.
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Log in to your myGov account.
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Go to the ATO section and select Lodge a tax return.
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Use the pre-fill feature – this imports data from employers, banks, and government agencies directly into your return.
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Check every field carefully for accuracy. Mismatched details (like wrong bank info) are the number one cause of refund delays.
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Submit your return once complete.
Step 3 – Lodge Through a Registered Tax Agent (Optional)
If your finances are more complex or you want professional help maximising deductions, a registered tax agent can prepare and lodge your return for you. Benefits include:
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Expert advice on deductions.
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Extended lodgment deadlines.
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Reduced the chance of errors.
Frequently asked Questions
Q1. How long does the ATO take to refund taxes?
The Australian Taxation Office usually processes online tax returns within two weeks if lodged via myGov or a registered tax agent. Paper returns may take up to 10 weeks. Delays can occur if your details are incorrect or more verification is needed.
Q2. What time does the ATO process payments?
The ATO releases payments in daily batches, typically in the early morning hours (AEST). Your bank’s processing time can affect when funds appear in your account.
Q3. How long does it take for a tax refund to hit a bank account?
Once the ATO issues your refund, most banks deposit it within 1–3 business days. Weekends and public holidays can extend this time frame.
Q4. How to check the status of your ATO refund?
You can check your refund status by logging into your myGov account linked to the ATO and selecting “Income tax” > “Lodgements” > “Income tax return” > “View status.” Status updates may take up to 48 hours after lodgement.
Q5. What are the common mistakes that delay your refund?
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Lodging before your employer’s income statement is marked “Tax ready.”
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Mismatched personal details (name, TFN, or bank account)
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Forgetting to declare all income
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Claiming deductions without proof
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Using outdated bank details
SOURCE:-www.ato.gov.au