Earn
Were you disappointed with this year’s tax return?
With the federal government publicly spruiking its $1,080 tax rebate, many Australians were understandably expectant of a larger than usual cash windfall.
Were you disappointed with this year’s tax return?
With the federal government publicly spruiking its $1,080 tax rebate, many Australians were understandably expectant of a larger than usual cash windfall.
However, according to tax agents H&R Block, the average size of refunds this year was only a $420 increase: From $2,380 to $2,800.
H&R Block’s director of tax communications, Mark Chapman, said that the low- and middle-income tax offset gives taxpayers earning between $37,001 and $126,000 an additional tax offset of between $255 and $1,080.
But returns this year have been smaller than people expect due to Australia’s complex tax rules leaving taxpayers unsure what they can and can’t claim.
The Prime Minister’s offset announcement did result in a spike of people lodging with myTax, which was up 11 per cent on last year.
As a result, low- and middle-income earners looking to secure a tax return encountered problems, with phone calls rising by 35 per cent this year compared with 25 per cent the year before.
This left many myTax lodgers missing out on valuable tax deductions for things like work-related expenses that they were entitled to, as myTax pre-fills income information but does not pre-fill deductions, which taxpayers need to complete themselves, Mr Chapman said.
He advocated for taxpayers to use tax agents, as they are guided through all the potential deductions they can claim and are less likely to miss out on benefits.
“In short, people who lodged their own tax returns appear to have claimed the tax offset but lost some of the extra refund because they didn’t claim all the deductions they were entitled to,” Mr Chapman concluded.
RELATED ARTICLES
About the author
About the author
Tax refund
The ATO will be focusing on these four issues at tax time
The tax office has indicated it will be scrutinising areas where taxpayers are known to make mistakes. Read more
Tax refund
More than half of Aussies get stressed at tax time, survey finds
Many taxpayers feel that they may be missing out on deductions in their tax returns. Read more
Tax refund
Engage or face firmer action, ATO warns taxpayers with unpaid debts
The tax office is offering support and assistance to those with overdue debts. Read more
Tax refund
How to prepare for your tax return
While the end of the financial year is still a couple of months away, you can take action now to help maximise your tax return. Read more
Tax refund
What issues will be on the ATO’s radar this year?
H&R Block has outlined two main areas that the tax office is expected to focus on. Read more
Tax refund
How does the expanded low and middle income tax offset work?
Millions of taxpayers will receive hundreds of dollars more in their tax return this year. Read more
Tax refund
Why 90% of taxpayers could face a higher tax bill next financial year
A tax offset for over 10 million Aussies may not be extended in next month’s budget. Read more
Tax refund
PM ponders extension of low and middle income tax offset
Scott Morrison has hinted that a popular tax-saving measure may return in 2022. Read more
Tax refund
The ATO will be focusing on these four issues at tax time
The tax office has indicated it will be scrutinising areas where taxpayers are known to make mistakes. Read more
Tax refund
More than half of Aussies get stressed at tax time, survey finds
Many taxpayers feel that they may be missing out on deductions in their tax returns. Read more
Tax refund
Engage or face firmer action, ATO warns taxpayers with unpaid debts
The tax office is offering support and assistance to those with overdue debts. Read more
Tax refund
How to prepare for your tax return
While the end of the financial year is still a couple of months away, you can take action now to help maximise your tax return. Read more
Tax refund
What issues will be on the ATO’s radar this year?
H&R Block has outlined two main areas that the tax office is expected to focus on. Read more
Tax refund
How does the expanded low and middle income tax offset work?
Millions of taxpayers will receive hundreds of dollars more in their tax return this year. Read more
Tax refund
Why 90% of taxpayers could face a higher tax bill next financial year
A tax offset for over 10 million Aussies may not be extended in next month’s budget. Read more
Tax refund
PM ponders extension of low and middle income tax offset
Scott Morrison has hinted that a popular tax-saving measure may return in 2022. Read more
