ATO warning to millions of Aussies desperate for $1,519 cash boost: ‘Misconception’
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ATO warning to millions of Aussies desperate for $1,519 cash boost: ‘Misconception’
Finder found the average Aussie is expecting a tax refund of $1,519. Nearly one in four Aussies surveyed said their tax refund was “very important” to their financial health. But not everyone is expecting to get a refund this year, with 18 per cent saying they thought they would be getting a tax bill. Taxpayers are being warned not to rush their tax returns, or they could risk making mistakes and missing out on legitimate claims. CPA Australia tax lead Jenny Wong has urged Aussie to take time to gather their evidence of work-related expenses over the next few weeks.
Millions of Australians will be able to lodge their tax returns with the Australian Taxation Office (ATO) in the coming weeks. While many are desperate for a cash boost in the form of a refund, taxpayers are being warned not to rush.
More than 10 million Australians expect a tax refund this year, new Finder research found, with 7 per cent admitting the extra cash would be “critical” to their financial wellbeing. The average Aussie is expecting a refund of $1,519.
Finder head of consumer research Graham Cooke told Yahoo Finance Aussies would be rushing to get their hands on some extra cash from July 1.
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“Australians who are living month to month are very eager to access their tax refunds to ease financial strain,” Cooke said.
“With many households grappling with the cost of living, these refunds offer a much-needed reprieve. For some, the refund is essential to cover essential expenses, such as keeping the lights on.”
Nearly one in four Aussies surveyed said their tax refund was “very important” to their financial health, while a further 41 per cent said it was “somewhat important”.
Women were more likely to need a refund, with 39 per cent admitting it was “critical” or “very important” for their finances, compared to 24 per cent of men.
But not everyone is expecting a refund this year, with 18 per cent saying they thought they would be getting a tax bill.
Cooke has urged Aussies to make sure they are making prudent use of any refund.
“Consider using the funds to pay down debt, deposit into a high-interest savings account, or contribute to superannuation to maximise long-term benefits,” he said.
Warning not to rush tax return
It comes as Aussies are urged not to rush their tax returns, or they could risk making mistakes and missing out on legitimate claims.
CPA Australia tax lead Jenny Wong has urged Aussies to take time to gather their evidence of work-related expenses over the next few weeks and to wait for the ATO to pre-fill their information before lodging.
“Firing the starting pistol on your tax return too quickly means you could end up shooting yourself in the foot,” she said.
“There’s a misconception that lodging early means you’ll receive your refund first, but it’s not as simple as that.
“It’s common for people who lodge early to end up having to amend their returns later anyway, so it’s best to wait. It’ll save you in the long run.”