Balancing account is a normal, near-final stage in processing your tax return. It means the ATO has worked out your result and is now checking it against your accounts, including any tax you owe and any amounts owed to other government agencies, before it releases your refund or issues your bill. It is not a warning sign, and there is nothing you need to do. For most people it means the money is close. Most online tax returns are processed within two weeks, and the balancing account stage usually sits in the last few days of that.
Does balancing account mean something is wrong?
No. It is one of the standard stages every return passes through, not a review or an audit. The ATO uses this step to make sure the refund it is about to pay, or the bill it is about to send, is correct once your other balances are taken into account. The only time it changes your outcome is if you have a debt that needs to be paid out of your refund, and if that happens the ATO tells you.
How long does balancing account take?
Usually only a few days. The ATO aims to process most tax returns lodged online within two weeks, and balancing account is one of the last stages before your notice of assessment issues. If your return needed manual checking it can take longer, up to about 30 days. Returns pulled for manual review are often the ones with errors or missing details, which our guide to common tax return mistakes covers. If you are past the timeframe the ATO gave you, that is the point to follow up, not before.
Could your refund be smaller than you expected?
Yes, and balancing account is the stage where that can happen. The ATO is required to use part or all of a refund to pay outstanding amounts, whether that is an old tax debt or money owed to another agency such as Centrelink or child support. If any of your refund is redirected this way, the ATO notifies you, and your notice of assessment shows how the final figure was worked out.
What the other tax return statuses mean
While you wait, you may see other statuses in ATO online services or myGov. In short:
In progress, Processing means your return has been received and is being worked through.
In progress, Information pending means the ATO is gathering information to finish it.
In progress, Under review means it is being checked manually to make sure everything is right.
In progress, Balancing account means the result is being finalised against your accounts, as above.
Issued means processing is complete and your notice of assessment has been sent.
What should you do while it says balancing account?
In most cases, nothing. Balancing account is not a request for action, so you do not need to call the ATO or resubmit anything. It is worth checking that your bank details in the return are correct, since that is where the refund lands. If the timeframe the ATO gave you has passed and the status has not moved, then it is reasonable to contact the ATO, or ask your tax agent to check on your behalf.
