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.
About the author
About the author
Tax refund
Proposed Coalition tax cuts blasted in new ad campaign
Critics of the Morrison government’s proposed early stage 3 tax cuts are demanding that Treasurer Josh Frydenberg move away from high income tax breaks and instead look towards social spending, a n...Read more
Tax refund
Does Australia need an aged care tax?
The royal commission into aged care has found that an increase in funding is required to adequately care for residents, according to new research. ...Read more
Tax refund
$180k all for himself: Tax fraudster took advantage of clients
A Mount Druitt tax professional will spend time behind bars after he was found to be lodging false tax return amendments on behalf of clients without their knowledge. ...Read more
Tax refund
Australians tipped to overpay the taxman $1.1bn
New working-from-home deductions are seeing Australians at risk of missing out in over $1 billion in tax refunds, new research reveals. ...Read more
Tax refund
Is your tax agent the real deal?
Australians are being warned against entrusting their tax matters to “bogus” tax agents. ...Read more
Tax refund
The best way to use your 2019-20 tax return
Putting cash away for a rainy day and paying down debt are two “sensible strategies” for using your 2019-20 tax return, according to an accountant. ...Read more
Tax refund
Budget could see big changes to tax and super, warns BT
Given the impact of COVID-19, the government may consider announcing some significant changes to the taxation of super in the budget this year, BT Technical Services has said. ...Read more
Tax refund
Cosmetic surgery, a clown suit and caravanning: Bizarre tax deductions
An accountant spills the beans on some of the weirdest and wackiest tax return deduction claims he has seen. ...Read more
Tax refund
Proposed Coalition tax cuts blasted in new ad campaign
Critics of the Morrison government’s proposed early stage 3 tax cuts are demanding that Treasurer Josh Frydenberg move away from high income tax breaks and instead look towards social spending, a n...Read more
Tax refund
Does Australia need an aged care tax?
The royal commission into aged care has found that an increase in funding is required to adequately care for residents, according to new research. ...Read more
Tax refund
$180k all for himself: Tax fraudster took advantage of clients
A Mount Druitt tax professional will spend time behind bars after he was found to be lodging false tax return amendments on behalf of clients without their knowledge. ...Read more
Tax refund
Australians tipped to overpay the taxman $1.1bn
New working-from-home deductions are seeing Australians at risk of missing out in over $1 billion in tax refunds, new research reveals. ...Read more
Tax refund
Is your tax agent the real deal?
Australians are being warned against entrusting their tax matters to “bogus” tax agents. ...Read more
Tax refund
The best way to use your 2019-20 tax return
Putting cash away for a rainy day and paying down debt are two “sensible strategies” for using your 2019-20 tax return, according to an accountant. ...Read more
Tax refund
Budget could see big changes to tax and super, warns BT
Given the impact of COVID-19, the government may consider announcing some significant changes to the taxation of super in the budget this year, BT Technical Services has said. ...Read more
Tax refund
Cosmetic surgery, a clown suit and caravanning: Bizarre tax deductions
An accountant spills the beans on some of the weirdest and wackiest tax return deduction claims he has seen. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
