As Tax Time 2026 begins across Australia, Sunrise Business Services is urging individuals, workers, investors and small business owners to take extra care before lodging their tax returns.
The warning comes as the Australian Taxation Office continues to remind taxpayers that rushing to lodge in the first few days of July can increase the risk of mistakes, missing income, incorrect deductions and later amendments.
Sunrise Business Services says many Australians lodge early hoping to receive a quicker refund, but early lodgement can sometimes create more problems than benefits, especially when income details and other important information have not yet been pre-filled by the ATO.
Sunrise Business Services Warns Against Early Lodgement Mistakes
According to Sunrise Business Services, one of the biggest tax-time mistakes people make is lodging before all income information is ready.
In the 2024–25 financial year, the ATO’s data matching program adjusted more than 595,000 individual tax returns due to missing income, overstated deductions and other errors. A further 140,000-plus returns were corrected for issues involving employment income, bank interest, dividends, government payments, Medicare levy exemptions and private health insurance details.
Sunrise Business Services says these figures are a strong reminder that taxpayers should not treat tax returns as a simple formality. With Australia’s tax system becoming more data-driven, incorrect or missing information can be detected more easily than ever.
“Many taxpayers think lodging early means getting their refund faster, but if important information is missing, it can lead to amendments, delays or further ATO review,” Sunrise Business Services said.
Why Waiting Until Late July Can Help
Sunrise Business Services is encouraging taxpayers to consider waiting until late July before lodging their tax returns.
By late July, most information from employers, banks, health funds, government agencies and financial institutions is usually available through ATO pre-fill. This may include salary and wage income, bank interest, dividends, private health insurance details, government payments and other reportable information.
Sunrise Business Services says taxpayers should still carefully review their pre-filled information before lodging, as responsibility for accuracy remains with the taxpayer.
Waiting gives individuals more time to check records, collect receipts, confirm income details and make sure deductions are supported by evidence.
Tax Returns Are Becoming More Complex
Sunrise Business Services says tax time has become more complex for many Australians due to changing work and income patterns.
Many people now earn income from more than one source. This may include casual jobs, second jobs, freelance work, side hustles, Uber or delivery driving, online selling, social media income, rental properties, share investments or crypto trading.
These extra income sources can make tax returns more difficult to prepare correctly.
Groups that may need extra care this tax season include:
• Students working multiple jobs
• Migrant workers new to the Australian tax system
• Nurses and healthcare workers
• Tradies and construction workers
• Uber, taxi and delivery drivers
• Retail and hospitality workers
• Freelancers and contractors
• Sole traders and small business owners
• Share and crypto investors
• Rental property owners
• People earning income through online platforms
Sunrise Business Services says these taxpayers should carefully review all income and deduction records before lodging.
Common Tax Mistakes Sunrise Business Services Wants Australians to Avoid
Sunrise Business Services has highlighted several common mistakes that can cause problems during tax time.
These include lodging too early, forgetting income from second jobs, not declaring side hustle or gig economy income, claiming work-from-home expenses without proper records, overstating deductions, claiming private expenses as work expenses and failing to report investment income correctly.
Rental property owners should also be careful when claiming deductions. Sunrise Business Services says many taxpayers make mistakes when distinguishing between repairs, maintenance and capital improvements.
Crypto and share investors also need to ensure their gains and losses are calculated correctly, as many platforms and exchanges report information to the ATO.
ATO Data Matching Makes Undeclared Income Easier to Detect
Sunrise Business Services says taxpayers should be aware that the ATO receives data from a wide range of third parties.
This includes employers, banks, share registries, crypto exchanges, digital platforms, Medicare, Services Australia and other government agencies.
If income has been reported by a third party but is missing from a tax return, it may be flagged by the ATO. In some cases, taxpayers may receive a refund first and then later be contacted for correction or amendment.
Sunrise Business Services says this is why it is important to declare all income, even if it seems small or irregular.
Work-From-Home and Vehicle Claims Need Proper Records
Work-from-home deductions remain an important area for many taxpayers. Sunrise Business Services says people working from home should keep proper records of hours worked and expenses claimed.
Similarly, workers claiming vehicle or travel-related expenses should make sure they have the required records, such as logbooks, receipts or evidence showing the expense is connected to income-producing work.
Sunrise Business Services says deductions must be genuine, work-related and supported by evidence.
Be Careful With Social Media and AI Tax Advice
Sunrise Business Services is also warning taxpayers not to rely only on social media tips, online videos or AI-generated tax advice.
While general information may be useful, tax rules depend on individual circumstances. A deduction that applies to one person may not apply to another.
A taxpayer’s occupation, income sources, records, work arrangements and personal situation all matter when preparing a return.
Sunrise Business Services says professional review can help taxpayers avoid making claims that may not hold up if questioned by the ATO.
How Sunrise Business Services Can Help This Tax Time
Sunrise Business Services provides tax and accounting support for individuals, workers, investors, sole traders and small business owners.
The team can help taxpayers review their income, check deductions, organise records and prepare their tax returns with greater confidence.
Sunrise Business Services can assist with:
• Individual tax return preparation
• Work-related deduction reviews
• Work-from-home expense claims
• Side hustle and gig economy income
• Sole trader and small business tax matters
• Rental property income and deductions
• Share and crypto-related tax records
• ATO pre-fill information review
• Record checking before lodgement
• Tax return preparation and lodgement support
Sunrise Business Services says its goal is to help taxpayers lodge correctly, avoid common mistakes and reduce the risk of future ATO issues.
Pre-Lodgement Checklist Recommended by Sunrise Business Services
Before lodging a 2026 tax return, Sunrise Business Services recommends taxpayers check the following:
• Wait until income information is ready
• Review ATO pre-fill details carefully
• Confirm personal and bank details
• Collect all income records
• Keep receipts for deductions
• Record work-from-home hours where needed
• Prepare vehicle logbooks where required
• Review side hustle and gig income
• Check share and crypto records
• Organise rental property documents
• Keep evidence for every deduction claimed
• Seek professional support if unsure
Sunrise Business Services says proper preparation can help taxpayers avoid unnecessary stress, delays and amendments.
Sunrise Business Services Encourages Australians to Lodge With Confidence
Tax time can be stressful, especially for people with multiple income sources or complex deductions. Sunrise Business Services says Australians should take time to prepare properly instead of rushing into lodgement.
With ATO data matching becoming stronger and tax rules becoming more detailed, professional guidance can help taxpayers understand their obligations and lodge with confidence.
Sunrise Business Services is encouraging individuals, workers, investors and business owners to seek support before lodging their 2026 tax return.
For assistance with tax returns, deductions, income records or small business tax matters, contact Sunrise Business Services.
Sunrise Business Services
Australian Tax & Accounting Advisers
Phone: 0482 013 368
