Amending a Tax Return: 5 Facts & A Common Myth

Even with the best intentions, mistakes can happen when lodging your tax return.

Whether you forgot to include some income or missed a deduction, here are five key facts you should know about amending a tax return, plus a myth we hear all too often.

1. You Can Fix It
   The ATO allows you to amend your return if you’ve made an error or left something out. This includes income, deductions, offsets, or even bank interest you forgot to include.

2. There Are Time Limits
   You generally have two years from the date the ATO issued your notice of assessment to amend your return. If you are a sole trader, from the 2024-2025 income year, you will have four years to amend the return. Any tax returns prior to that financial year will be the two year time limit.

3. Online amendments are possible.
   If you lodged your return via myTax, you can usually amend it online. But if you lodged through a tax agent, they’ll need to lodge the amendment on your behalf.

4. Interest or penalties may apply.
   If your mistake resulted in underpaid tax, the ATO may apply interest or penalties, especially if they believe it was careless or intentional.

5. Amendments can go both ways.
   It’s not just about fixing underpayments. If you discover you missed a deduction or over-reported income, you may be entitled to a refund after amending.

“If I fix it quickly, the ATO won’t care.”
Unfortunately, this is a common myth. Many taxpayers believe that if they spot an error on a rushed tax return and correct it quickly, the ATO will overlook it. But that’s not always the case.

The ATO takes accuracy seriously — and even if you amend a return yourself, you may still face penalties if the mistake was avoidable or part of a pattern of repeated errors. Taking care to get it right the first time is always the safer option.

Need To Make A Change?
Navigating amendments isn’t always straightforward, and errors can cost you time and money in the long run. Using a registered tax agent ensures your return is correct the first time, or appropriately amended if needed.

Talk to us today - we’re here to help you get it right every time.