New research from Westpac reveals Australians are welcoming the arrival of tax season, with nearly two thirds (64%) feeling confident in their ability to lodge a tax return.
The majority of Australians (83%) know exactly what supporting documents are needed to get started – such as your tax file number, receipts to support any expense claims, and your interest and tax summaries – and more than half (59%) are vigilant in tracking their claimable expenses throughout the year.
However, some Australians would still prefer to complete mundane tasks like doing household chores (31%), washing their car (24%) or even taking out the rubbish (22%) over getting on top of their taxes.
Australians also appear to have mixed emotions towards tax time; while half (49%) felt positive about lodging their return, describing the process exciting (19%) and relaxing (18%), three quarters (74%) felt less positively, finding the process stressful (17%) and confusing (13%)1.
The biggest barriers identified when it comes to lodging their tax return included not lodging the return correctly (29%), time constraints (23%) and not having transaction information easily available (22%).
Jane Watts, General Manager, Westpac Retail and Premium Bank, said submitting your tax return doesn’t have to be an overwhelming experience.
“It’s encouraging to see so many Australians feel positive about lodging their tax return, however the research also suggests pain points that often come with ‘life admin’ tasks can be off-putting with half of Australians planning to take their time submitting their return this financial year2.
“While it might be tempting to put off lodging your tax return, there are a range of services available to help reduce tax time headaches; to help get prepared, customers can take advantage of Westpac’s online and mobile banking features, which offer quick and convenient access to important information such as transaction history, tax summary and interest summary statements,” said Watts.
According to the research, more than half (58%) of Australians indicated they’re expecting a refund from their tax return this year, and intend to put refunded money towards their savings (44%) or pay off bills or existing debt (24%), while nearly one in five (18%) will splurge on something they’ve been saving up for.
“It’s encouraging to see Australians are intending to boost their savings or pay down debt. With an average tax return of $2,5713, the findings also found Australians are looking to build their long-term wealth by either investing their tax return or even putting it towards a home deposit,” Watts added.