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ATO warning: what the reported figures mean

In its 19 October 2026 media release, the ATO reported around nine million returns received, with two million self-preparers still to lodge. It also reported stopping over 10,000 returns suspected of involving unregistered preparers, containing more than $170 million in deduction claims.

Two distinctions matter: “yet to lodge” does not mean a taxpayer is already overdue, and deductions claimed are not the same as tax refunds paid. Suspected irregularities are also not a finding that every stopped return is fraudulent.

For Defence personnel balancing postings, training and deployments, the practical next step is straightforward: check your deadline, gather your records and ensure every claim is supported.

Why are people still waiting to lodge?

You may still be checking receipts, working out which expenses relate to your duties or trying to find time between service commitments. Others put off their return because they expect a tax bill or are unsure whether they need to lodge at all.

If that sounds familiar, begin with the information you already have. Make a list of missing records and questions for your tax agent rather than waiting until everything feels perfectly organised. Allow time to check the return before it is submitted.

For Army, Navy and Air Force members, a posting or deployment can make administration harder to manage. Arranging assistance early gives you time to explain your circumstances and work through any gaps in your records.

Your 2026 tax deadline, at a glance

The usual self-lodgment deadline is 31 October. In 2026 that falls on a Saturday, so the ATO’s next-business-day rule gives most self-preparers until Monday 2 November.

Does a tax agent automatically give you until May?

No. Registered agents have a lodgment program that can allow eligible clients more time, but the date depends on your circumstances. Previous overdue returns and other factors can affect eligibility. Ask your agent to confirm the date that applies to you rather than relying on a general May deadline.

Contacting an agent and having a confirmed lodgment arrangement are different steps. Ask whether you have been added to their client list, what information they need and when you must provide it. An appointment request alone should not be treated as confirmation of an extended deadline.

If you have earlier returns outstanding, tell your agent when you first make contact. This helps them assess both your current return and the work needed to bring previous years up to date.

Why the stopped returns matter for Defence members

The concern is about the accuracy of the claims and who prepared the returns. A large refund promise can be tempting, especially if you have heard that other members are claiming similar expenses. Another person’s claim is not evidence that you qualify.

The $170 million represents deductions included in stopped returns. It is not an amount paid out in refunds, and a stopped return does not by itself establish fraud. For an individual taxpayer, the useful question is whether each expense can be explained and supported.

Warning signs when someone offers to prepare your return

• A guaranteed refund before reviewing your income and records.
• Pressure to add expenses you did not incur or cannot explain.
• Advice to copy another member’s claims without checking your circumstances.
• A promise of special access to faster ATO processing.
• Reluctance to provide details you can check on the TPB register.

Ask how a proposed deduction relates to your duties, what records support it and whether Defence has already reimbursed the cost. A clear explanation matters more than a promised refund amount.

ADF tax deductions: three checks before you claim

Military service does not make every expense deductible. Start with these three checks, then apply the rules for the particular expense.

Expenses worth reviewing with your tax agent

• Compulsory uniforms and protective clothing: eligible purchase, repair and cleaning costs you paid yourself.
• Work travel: eligible unreimbursed travel while carrying out duties or between workplaces.
• Tools and equipment: the work-related portion of personally purchased items; some costs may need to be claimed over time.
• Training: eligible self-education connected to your current employment.
• Memberships, phone and internet: eligible employment-related costs, with private use excluded.

Uniforms and protective clothing

Review what you personally paid to buy, repair or clean eligible compulsory uniforms and protective clothing. Separate those costs from ordinary clothing and items supplied by Defence. Keep records of purchases and the basis for any cleaning claim.

Travel, postings and allowances

Start by identifying the purpose of each trip and whether you paid the cost yourself. Travel while performing duties can be treated differently from your normal commute. Keep itinerary details, receipts and reimbursement information together so your agent can assess the expense in context.

Equipment, training and professional costs

Explain how an item or course relates to the duties you currently perform. For equipment used both privately and for work, identify the work-related portion. For education, describe the connection to your present employment rather than assuming every career-related course qualifies.

Phone and internet use

A personally paid bill may include both work and private use. Retain the bills and records supporting your work-use calculation, and tell your agent about any reimbursement. Claiming the whole bill simply because you sometimes use it for work can overstate the expense.

Explore our Defence tax deductions guide and ADF posting, travel and allowances guide for more context.

Choose a registered agent, not a refund promise

Be cautious of anyone promising an unusually large refund, encouraging unsupported deductions or claiming they can fast-track ATO processing. Check the preparer on the Tax Practitioners Board public register.

You remain responsible for the accuracy of your tax return, even when someone else prepares it. Read the return before signing and ask questions about anything you do not understand.

DefenceTax is a trading name of Accountants Plus Pty Ltd, registered tax agent number 55961005. Our team can help review the records behind your Defence-related expenses and confirm your lodgment obligations.

Why choose a registered Defence tax specialist?

ADF returns can involve a mix of allowances, travel, training, postings and personally paid work expenses. A useful review considers how those circumstances fit together, including what Defence supplied or reimbursed and what you paid from your own pocket.

DefenceTax assists Army, Navy and Air Force personnel with annual returns, eligible deductions and outstanding prior-year returns. The aim is to identify what you can legitimately claim and prepare an accurate return supported by your records.

What about safe-harbour protections?

Using a registered agent may provide access to protections from certain administrative penalties in qualifying circumstances. These protections are conditional, not a blanket exemption from penalties or tax liabilities. See the TPB’s safe-harbour guidance and provide your agent with complete, accurate information in time to prepare your return.

Have you lodged your 2025–26 tax return?

Whether you are serving at a base, preparing for a posting or managing tax after a busy year, these four steps can help you get started.

1. Check your position. Confirm whether your current and previous-year returns need to be lodged.
2. Gather the essentials. Bring income statements, investment information, receipts and work-use records.
3. Review your claims. Separate private costs, reimbursements and eligible work-related expenses.
4. Confirm your deadline. Lodge on time or speak to the ATO or a registered agent promptly if you need help.

What happens if you miss the deadline?

The ATO’s October reminder warns of failure-to-lodge penalties of up to $1,820. A penalty is not automatic, and the treatment of your return depends on your circumstances. If you expect a bill, speak with your agent about lodging and payment options rather than leaving the return unresolved.

Read our late tax return penalties guide or get help with outstanding returns from previous years. If you want to use a registered agent for this year, make contact before 31 October so your eligibility and next steps can be assessed.

Your questions, answered