The study, released today, indicates that more than one in ten Australians (12%) are planning to delay their tax return until the last possible moment this year. Furthermore, over half of the respondents (56%) expect to postpone starting their return by up to a month or longer. This widespread procrastination underscores the daunting nature of tax time for many Australians.

In a striking revelation, the research found that one in five Australians (20%) would rather visit the dentist than complete their tax return. Additionally, a third (33%) would prefer to clean their car, 29% would opt to clean their entire house, and 28% would choose to declutter their email inbox over dealing with their tax paperwork. These findings paint a clear picture of the aversion many feel towards the EOFY process.

Sally Davies, General Manager of Solo and Embedded Finance at MYOB, elaborated on the reasons behind this hesitation. "People aren't avoiding tax returns because they enjoy cleaning the house more. They're worried about making mistakes, missing deductions or discovering they owe money," she explained. Davies emphasised that much of the stress associated with tax time is preventable. "The good news is that a lot of tax-time stress is preventable. Keeping receipts organised, tracking expenses as they happen and staying on top of paperwork throughout the year can make End of Financial Year less daunting," she added.

The study also highlights that more than half of Australians (51%) are primarily concerned about owing money at tax time, while nearly a third worry about making mistakes (31%), understanding what they can claim (29%), or missing deductions altogether (29%). Despite these concerns, tax refunds are increasingly viewed as essential rather than a mere bonus. Nearly half of Australians (49%) consider their refund either essential or very important to their household budget this year.

When it comes to utilising their tax refunds, most Australians plan to use them pragmatically. The research found that 42% intend to put their refund into savings, 31% plan to pay bills, and 28% aim to reduce debt. Interestingly, a small portion of respondents, around 5%, intend to splurge on pet care, a trend consistent with previous years.

For sole traders, freelancers, and side hustlers, the EOFY presents unique challenges. Among self-employed Australians, the leading stressors include understanding tax obligations (34%), paying tax owed (28%), finding time to manage everything (27%), and chasing receipts (20%). Davies noted, "For many sole traders, EOFY arrives on top of everything else they're already doing like serving customers, winning work and managing cash flow. When you're running a business on your own, admin can quickly fall down the priority list until June arrives and there's a year's worth of paperwork to sort through."

The research also pointed out ongoing record-keeping challenges, with 39% of self-employed Australians storing receipts in their email inbox and 24% relying on a shoebox or folder. A further 6% admit receipts are often lost altogether. Davies highlighted the role of technology in alleviating these challenges. "Solo by MYOB was built specifically for sole traders and side hustlers who don't have time to spend hours on business admin. Capturing receipts, tracking expenses and keeping records organised throughout the year makes EOFY easier and helps ensure valuable deductions aren't missed," she said.

Interestingly, there is a growing interest in digital tools, with one in seven Australians (15%) planning to use AI tools such as ChatGPT to help navigate tax time this year. Davies remarked, "Technology won't replace good financial advice from a trusted advisor, but it can help prepare you for that conversation. By using tools like Solo by MYOB with AI Smart Matching so your details are all reconciled and ready to go it removes much of the friction that causes people to procrastinate."

As Australians brace themselves for another EOFY, it is clear that the stress and procrastination associated with tax time are significant issues. However, with the help of organisational strategies and digital tools, there is hope for a smoother and less daunting experience.