Brokers relying on clients' tax returns to verify income for loan applications may want to flag a timing issue this tax season: CPA Australia is urging Australians not to rush their 2026 returns, warning that early lodgement increases the risk of errors and fraud exposure — both of which can complicate documentation for borrowers, particularly the self-employed.
CPA Australia has flagged rising fraudulent activity targeting taxpayers, with criminals impersonating the ATO via phone, text and email.
"Tax time is a peak period for scam activity," said Jenny Wong, tax lead at CPA Australia, urging clients to avoid unsolicited links and to verify any unexpected communication directly through official channels before sharing personal or financial information.
That warning is backed by current figures. The ATO's own data shows it received 1,386 reports of ATO impersonation scams in May alone — an 11% increase on April — though no payments to scammers were reported that month.
The scam risk isn't the only reason to hold off. Wong said the temptation to lodge early often works against taxpayers.
"Getting your tax return done early can be tempting, but it's important not to rush," she said.
For brokers, the gap between early lodgement and finalised, pre-filled income data is exactly where amendment risk creeps into a client's file — taxpayers who file before pre-fill data is available "are more than twice as likely to need amendments," according to Wong.
ATO figures show a shift in behaviour, with 2.8 million individual returns lodged by 22 July last year — a 4% decrease on the prior year — and lodgements by mid-August also trailing behind previous levels, particularly through agents. Wong framed this as a positive sign, though the ATO adjusted more than 595,000 returns last financial year over missing income and overstated deductions.
For brokers, the message is straightforward: encouraging clients to wait for complete, pre-filled tax data — and to use a registered tax agent where needed — could mean smoother income verification and fewer amendments disrupting loan timelines this season.
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