1 in 3 Aussies desperate for tax time cash injection, data reveals
Thousands of Aussies are in critical need of their tax refund as tax time creeps closer, new research from Finder has found.
A recent survey conducted by Finder has revealed one in three Australians are “cash poor” and are desperate for the cash injection their tax return will give them.
The survey consisted of 1,015 respondents and showed that 47 per cent (equivalent to more than 10 million people) were expecting a tax refund this year, with 7 per cent (equivalent to more than 700,000 people) having admitted that extra cash was critical to their financial wellbeing.
Graham Cooke, head of consumer research at Finder, said the results reflected the average Aussie to be anticipating a tax refund of $1,519, equating to $15.3 billion nationwide.
“Many households living month-to-month will be particularly keen to access these funds. For those struggling with the rising cost of living, a cash boost will offer some necessary financial reprieve.
According to the results, most taxpayers were “eagerly awaiting” their tax refunds; however, women were feeling the pinch the most as 39 per cent admitted their tax refund was critical or very important, compared to 24 per cent of men.
Twenty-four per cent said a tax refund was very important to their financial health, 41 per cent said it was somewhat important to their finances, and 18 per cent were expecting a tax bill instead of a refund this year.
Cooke noted the best steps for taxpayers to take ahead of tax time are to ensure they are communicating with their accountant, or considering one if they didn’t already have one, lodge their return on time, but not too early, and to hold on to receipts of items or services to be claimed.
Despite most people being desperate for their tax return, Cooke warned that the refund should be used wisely.
“Consider using the money to pay down debt, boost your savings, or contribute to superannuation for long-term benefits. If you don’t have three to six months of essential expenses saved, using your refund to build or top up this fund can provide a significant sense of security for the year to come.”
Cooke added that taxpayers should always verify the legitimacy of any communication before sharing financial information.
“Tax time attracts opportunistic scammers – be vigilant about suspicious emails, texts, or calls claiming to be from the ATO or other financial institutions. Never click on any links received by email or text.”
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