How long can the ATO hold your refund?

Responding promptly will help us to process this more quickly. If we continue to retain your refund 60 days after the 14-day or 30-day period, you may object to our decision to retain your refund.

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Why is my ATO refund taking so long?

Although most tax returns lodged online will be processed in 2 weeks, some tax returns may take longer to process. Examples are if: you attempt to lodge your tax return again after previously lodging. you have made an amendment before we finish processing your original tax return or any previous amendments.

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How long is the ATO refund processing?

We aim to process the majority of electronically lodged tax returns within 12 business days. If you can't lodge electronically, lodging a paper tax return can take up to 50 days for us to process manually.

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What date is the ATO obliged to pay the refund?

I note that in BAS refunds in the ATO site it says: within 14 days of lodgment of your activity statement. within 30 days of lodgment of your tax return if we have retained your refund for verification purposes.

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Can the ATO take your tax return?

Yes, but only if you owe a debt to them or another Commonwealth agency e.g. Child Support or Family Assistance. They will use the tax refund to go towards what you owe. The ATO can withhold your tax refunds even if you list these debts in your bankruptcy.

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How to avoid delays with your 2023 Tax Refund in Australia? Common ATO Delays Explained

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Can the ATO take money from your bank account?

If you are in debt to the ATO, you may be issued with a garnishee notice on your bank accounts with a demand to pay the ATO within a specified amount of time. Failure to do so can result in your bank accounts being frozen and a suspension on your trading accounts.

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What happens when you owe the ATO money?

If you don't pay on time, we will automatically add a general interest charge (GIC) to what you owe. Your debt will grow each day your debt remains unpaid. Interest calculates on a daily compounding basis on the amount outstanding and is added to your account periodically.

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How late can you claim a refund?

Claim a Refund

If you are due a refund for withholding or estimated taxes, you must file your return to claim it within 3 years of the return due date. The same rule applies to a right to claim tax credits such as the Earned Income Credit.

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What happens if my tax return is late Australia?

The Australian Taxation Office (ATO) may apply a "failure to lodge on time penalty" (FTL). The penalty is calculated at the rate of one penalty unit for each period of 28 days or part thereof that the return is overdue, up to a maximum of five penalty units.

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Does the ATO work on weekends?

Our operating hours for our individuals enquires line are currently 8.00am–6.00pm Monday–Friday and 10.00am–2.00pm Saturday.

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How long does it take for tax refund to hit bank account?

Normally we aim to process most returns in about 2 weeks. That can vary a little depending on how complex the return is or whether anything needs to be doubled checked.

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What is the average tax return in Australia?

Over 14 million people lodge a tax return each year in Australia and of those who receive a refund (about two-thirds) on average they receive just over $2,800 each, resulting in a collective refund of more than $30 billion.

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What is the longest tax refund going to take?

"If you filed on paper, it may take 6 months or more to process your tax return," the agency warns. In the best-case scenario, it says, a paper tax return could have you waiting about four weeks for a refund.

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Why am I waiting so long for my refund?

Early filers may have to wait for refunds. One reason for this is because the IRS may still be making changes to their processes. That could include updated security measures or process tweaks due to changes in the tax code.

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Why do some refunds take longer?

Even though the IRS issues most tax refunds within 21 days, it's possible your return may require additional review and take longer to process. For some taxpayers, PATH Act requirements and other identity-protection safeguards implemented by the IRS may account for longer wait times.

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What happens if my return is late?

If you owe taxes, a delay in filing may result in a "failure to file" penalty, also known as the “late filing” penalty, and interest charges. The longer you delay, the larger these charges grow. It may result in penalty and interest charges that could increase your tax bill by 25 percent or more. Losing your refund.

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Can you lodge your tax return after October 31?

There is a way to lodge later than October 31, if your circumstances won't permit you to make the deadline. "You simply need to be registered as a tax agent client by 31 October 2021 and you can lodge your tax return through that agent as late as 15 May 2023," Chapman said.

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Can I get a refund from 2 years ago?

Submitting a Claim for Refund

Generally, you must file a claim for a credit or refund within three years from the date you filed your original tax return or two years from the date you paid the tax, whichever is later.

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How do I get a refund after 3 years?

Generally, you have three years from the original tax return deadline to file the return and claim your refund. After three years, the refund will go to the government, specifically the U.S. Treasury. Don't miss out on the refund that is due you!

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Can I get a refund after 30 days?

Make sure you return the item within 30 days — after this point, the retailer can give you a repair or replacement, but you're not entitled to a refund.

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Does the ATO check your bank account?

We receive data from a range of sources, including banks, financial institutions and other government agencies. We validate this data and match it against our own information to identify where people and businesses may not be reporting all their income.

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Does owing the ATO affect your credit score?

Unless you fail to pay your tax altogether and the ATO decides to start insolvency proceedings, a tax debt on your personal income tax account won't affect your credit rating. However, interest and penalties for late payments could be applied to overdue amounts.

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Can you negotiate a debt with the ATO?

A compromise of tax debt is an agreement between us and a taxpayer to: accept a lesser amount to satisfy an undisputed tax debt. not pursue the balance of an undisputed tax debt.

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