A confidence gap could be costing Australians a lot of money at the end of the financial year (EOFY), with recent research from H&R Block Australia indicating that individual financial situations are often far more complex than taxpayers realise.\u00a0 \n<\/p>\n
The June 30 deadline can cause struggles for everyday people, mostly by forcing a rushed scramble to finalise financial paperwork.\u00a0 \n<\/p>\n
\n You\u2019re out of free articles for this month <\/p>\n
Missing the deadline date means individuals can lose valuable tax deductions, miss out on superannuation caps, or incur penalties and debt from government agencies, the tax firm said.\u00a0 \n<\/p>\n
The H&R Block Australia survey found that 77 per cent considered their tax straightforward or simple. Seventy-one per cent, however, had at least one factor in the past financial year that added real complexity to their return, including working from home (24 per cent), receiving government payments (22 per cent), making investments (21 per cent), holding multiple jobs or income sources (14 per cent), earning side hustle income (13 per cent), or owning an investment property (11 per cent).\u00a0 \n<\/p>\n
The report found that Australians were using a shortcut approach to their tax returns, as almost half spent one hour or less on their last return.\u00a0 \n<\/p>\n
More than a third took a shortcut approach to work-related deductions, including using fixed rates, repeating last year\u2019s method, or going with whatever their software suggested.\u00a0 \n<\/p>\n
Among those who used a fixed-rate method, 64 per cent said they chose it simply because it seemed the easiest or quickest option.\u00a0 \n<\/p>\n
The director of tax communications at H&R Block Australia, Mark Chapman, said that the gap between perceived simplicity and real-world outcomes was the defining tax story of EOFY.\u00a0 \n<\/p>\n
\u201cNearly half of Australians have been caught out at tax time at some point, whether through a lower refund, an unexpected bill or a letter from the ATO,\u201d he said.\u00a0 \n<\/p>\n
Even though for the majority of Australians, once the tax return is completed, they move on, the doubt doesn\u2019t always go away for some.\u00a0 \n<\/p>\n
The report showed that six in 10 have some apprehension, even after hitting submit. Meanwhile, four in 10 believed they had missed something on a past return.\u00a0 \n<\/p>\n
Despite the majority of Australians considering their taxes straightforward, most face financial complexities, such as investments or side hustles, that make rushing their return risky.\u00a0 \n<\/p>\n
The survey data on speed and complexity suggested that a significant number of people may be missing out on legitimate deductions because they avoided seeking professional help until their situations had become complicated.\u00a0 \n<\/p>\n
In fact, with 71 per cent of Australians facing at least one added financial complexity, such as working from home, investments, side hustles, or multiple income streams, rushing through a tax return can be risky.\u00a0 \n<\/p>\n
The research portrayed that 42 per cent would only seek professional help once their tax situation becomes more complicated.\u00a0 \n<\/p>\n
A further 32 per cent said they would only seek help if they realised they had been missing deductions to which they were entitled.\u00a0 \n<\/p>\n
Chapman noted that the findings should prompt Australians to pause before lodging on autopilot this year.\u00a0 \n<\/p>\n
\u201cFor many Australians, tax is more complex than it used to be. Changes in work, income or finances can affect what you can claim and how you should lodge,\u201d he said. \n<\/p>\n
Despite three in four Australians considering their tax straightforward, the majority face complexities such as investments or working from home that increase the risk of missing valuable deductions.\u00a0 \n<\/p>\n
This gap between perceived simplicity and actual complexity suggests many taxpayers should pause before lodging and consider seeking professional advice this EOFY.\u00a0 \n<\/p>\n
Chapman said for Australians who are not confident completing their tax return, a professional could help them avoid costly errors at tax time.\u00a0\u00a0\u00a0\u00a0 \n<\/p>\n
\u201cThe best outcomes may not come from rushing through your return or assuming this year is the same as last year.\u201d\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"A confidence gap could be costing Australians a lot of money at the end of the financial year…\n","protected":false},"author":2,"featured_media":715480,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[64,63,44],"class_list":["post-715479","post","type-post","status-publish","format-standard","has-post-thumbnail","category-australia","tag-au","tag-australia","tag-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/715479","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=715479"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/715479\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/715480"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=715479"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=715479"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=715479"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}