What Is a Tax Return Amendment?
A tax return amendment is a way of correcting information in a tax return after it has already been lodged.
You might discover that income was missing, a deduction was entered incorrectly, an employer later updated an income statement or another piece of information changed after lodgement.
The amendment process allows the corrected information to be provided to the Australian Taxation Office.
If you later realise information in your tax return is incorrect or incomplete, review the records and correct the return where an amendment is required.
When Might You Need to Amend Your Tax Return?
There are many reasons why someone may discover a mistake after lodging.
Missing Income
You may have forgotten employment income, bank interest or another source of income.
Incorrect Deduction
A deduction may have been entered incorrectly or may need to be removed or adjusted.
Updated Information
An employer or another organisation may update information after you have lodged.
Something Was Left Out
You may discover information that should have been included in your original return.
Forgot to Declare Employment Income?
This can happen when someone works for more than one employer during the financial year.
For example, you may have changed jobs, worked casually for several employers or forgotten about income from an earlier job.
Your tax return should generally reflect all relevant employment income for the financial year.
You forgot an earlier job
A Nepali worker worked at a restaurant for three months, then changed jobs and later lodged a tax return using information from only the new employer.
After lodging, they notice the earlier employer's income statement. They should review the return and determine whether an amendment is required to include the missing income.
What If You Forgot Income From a Second Job?
Having multiple employers can make tax records more difficult to follow, particularly if jobs started or ended at different times.
Before lodging, it is useful to check that income statements for all employers have been included.
If one was missed and the return has already been lodged, the information may need to be corrected through an amendment.
What About Bank Interest?
Bank interest is another type of income that can sometimes be overlooked.
Someone may have several bank accounts, savings accounts or joint accounts and forget that interest was earned during the financial year.
If relevant interest income was left out of a lodged tax return, review the correct bank information and determine whether the return needs to be amended.
Forgot ABN or Sole Trader Income?
If you operate as a sole trader, your business income generally forms part of your individual tax return.
A common mistake is reporting TFN employment income but forgetting some income earned through an ABN.
This might include:
- cleaning income
- contracting income
- freelance work
- delivery work
- rideshare income
- other sole trader income
If business income was omitted, your tax return records should be reviewed carefully before making any correction.
What About Uber, DoorDash and Delivery Income?
Platform or gig-economy income can sometimes be missed when preparing a return, especially where the work was only performed for part of the year.
If you earned income through delivery, rideshare or another platform, check the relevant statements and business records.
Do not assume income can be left out simply because it did not initially appear in pre-filled tax information.
What If You Forgot Cash Income?
Receiving money in cash does not automatically mean the income is outside the tax system.
If taxable income was earned but accidentally omitted from the original tax return, the return may need to be corrected.
Keep any records that help establish the correct amount of income.
What If You Claimed the Wrong Deduction?
Amendments are not only about missing income.
You may also discover that a deduction was:
- entered twice
- entered using the wrong amount
- claimed without satisfying the relevant rules
- allocated to the wrong category
- based on incomplete records
If a deduction is incorrect, correcting it can change the amount of taxable income and potentially the final tax outcome.
What If You Forgot to Claim a Deduction?
The opposite situation can also happen.
You may lodge and later discover an eligible deduction that was not included.
Whether the deduction can be added depends on the normal eligibility and record-keeping requirements.
Finding a receipt after lodging does not automatically mean the expense is deductible, so the underlying tax rules still need to be considered.
Common Reasons for a Tax Return Amendment
| Situation | What to Review |
|---|---|
| Missing employer income | Check all income statements for the financial year. |
| Forgotten bank interest | Review bank statements and relevant tax information. |
| Missing ABN income | Check invoices, payment records and business statements. |
| Incorrect deduction | Review the amount, eligibility and supporting records. |
| Employer updated income statement | Compare the updated information with the lodged return. |
| Forgotten deduction | Check whether the expense is eligible and adequately supported. |
| Missing investment income | Review relevant investment statements and records. |
Should You Wait Before Amending?
If you realise there is a mistake shortly after lodging, avoid rushing to submit another change immediately.
The ATO advises taxpayers who need to amend a return to wait until they have received notification that the original return, or any previous amendment, has been processed.
This can help reduce processing delays.
Confirm what was actually lodged, gather the correct documents and wait for the original return to be processed before submitting an amendment where required.
How Can a Tax Return Be Amended?
Depending on the taxpayer and circumstances, an amendment may generally be requested through available ATO channels or through a tax agent.
The important part is making sure the corrected amounts are based on accurate information and supporting records.
Does an Amendment Replace the Original Tax Return?
An amendment changes information relating to the already lodged return.
You should therefore compare the corrected information carefully with what was originally submitted rather than treating the process as an entirely unrelated new tax return.
What Happens If the Amendment Increases Your Tax?
Correcting missing income or reducing an incorrect deduction can change your tax position.
Depending on the circumstances, the amended assessment may result in additional tax becoming payable.
The exact outcome depends on all the information in the return and your individual circumstances.
What If You Already Received Your Refund?
Receiving a refund does not prevent you from correcting information that was wrong in the lodged return.
If the amendment changes the tax calculation, the resulting assessment may also change.
Do not assume that a completed refund means an error should be left uncorrected.
Can an Amendment Increase Your Refund?
In some situations, correcting information may result in a different tax outcome.
For example, an eligible deduction or offset may have been missed in the original return.
However, no particular refund should be assumed or guaranteed until the corrected return information is assessed.
What If the ATO Finds the Missing Income First?
The ATO receives information from a range of third parties and may compare reported information with tax returns.
This means some discrepancies can potentially become visible through data matching.
If you discover a genuine omission yourself, it is usually better to review the return and take appropriate steps rather than deliberately ignoring the error.
What If Pre-Filled Information Was Missing?
Pre-filled information can be useful when preparing a tax return, but it should not be treated as a complete substitute for your own records.
If you lodged based only on pre-fill and later discover that relevant income was missing, review the records and correct the return where required.
What If Your Employer Updates Your Income Statement?
Employers can sometimes finalise or update income information after you have already reviewed it.
If an updated income statement changes information included in your lodged tax return, compare the updated amount with what was reported.
An amendment may be needed where the lodged return is no longer accurate.
Tax Amendments for Nepali Students in Australia
Nepali international students often work for multiple employers during the financial year.
This can make it easier to miss:
- a casual job
- an earlier employer
- bank interest
- delivery income
- ABN income
- some deductions
Before amending, gather the full-year information and review the complete return rather than correcting only one figure in isolation.
Tax Amendments for Nepali ABN Workers
Sole traders and ABN workers may have both employment income and business income in the same financial year.
Keeping separate records can make it easier to identify whether something was left out.
Business income, expenses, GST-related information and other records should be reviewed carefully where relevant.
What Records Should You Prepare?
Review what was originally lodged before making changes.
Check information from all employers for the financial year.
Review interest and other relevant income information.
Gather invoices, payment records and business expense documents.
Check receipts, calculations and other supporting evidence.
Common Mistakes When Amending a Tax Return
- submitting another change before the original return is processed
- correcting one figure without checking the rest of the return
- guessing the amount of missing income
- ignoring an updated income statement
- claiming a new deduction without checking eligibility
- forgetting ABN or platform income
- relying only on pre-filled information
- not keeping supporting records
How Hamro Accountant Can Help
Hamro Accountant provides Australian tax and accounting support for Nepali workers, students, ABN holders, sole traders and small businesses.
If you have already lodged and later discovered missing income, an incorrect deduction, updated employer information or another mistake, we can help review the information based on your circumstances.
Correcting a return properly can be especially important where several sources of income or business records are involved.