It’s that time of the year again: the new financial year means getting tax returns done. Or, if you are like the many Australians who hate doing their returns, it means putting it off.
Unfortunately, this is backed up by data: a recent survey showed that most of us (69%) would rather choose having a meal with our in laws over working on our taxes. This was followed by working on the weekend (65%) and cleaning the whole house (58%).
To make it worse, as many as 7 in 10 Aussies admit to making mistakes when it comes to their tax returns. An independent study has found the biggest potential pitfalls include poor record-keeping of income and expenses, not setting aside sufficient funds to meet tax obligations and not seeking professional advice early.
And while we might make a mental note to Marie Kondo our filing system every year, somehow work and life just always gets in the way and too often the manual process of looking through several bank statements takes too long, and often results in omissions and unintended mistakes[EC(D2] .
At the end of the day this means Aussies leave up to $300 million on the table each year in unclaimed tax.
But what if we told you it didn’t have to be this way? In fact, thanks to new technology, there’s now a better way to do your tax return that could not just save you time and effort but also improve the accuracy of your return – which translates to more money in your pocket.
It’s all thanks to MoneyHub’s Spend Tracker, which gives you a total overview of your income and expenses, and allows you to identify and tag potential deductions in advance so you’re ready to go at tax time.
To get a real world sense of how it works, have a look at how David, a busy 40-year-old IT manager, uses MoneyHub’s Spend Tracker to cut his tax admin in half with just five steps:
- He logs into his Spend Tracker account (through MoneyHub) and selects the relevant banks and accounts he wishes to view
- He picks the dates for which he wants to tag expenses as tax deductible and clicks on the relevant transactions to tag them
- He double checks what he could and couldn’t claim based on his occupation and tags all potential tax deduction transactions
- He downloads and saves the data, all beautifully tagged and in one place
- He shares the file with his tax agent
With these five easy steps, David cuts his tax admin time in half and is able to automatically pick up every relevant transaction, with no mistakes and no manual errors. Plus, he can identify relevant transactions accurately, giving him total control over his spending.
It’s a small amount of effort, but totally worth it, considering the average tax refund in Australia is almost $3,000 (from 10 million refunds).
Does this sound like something you would be interested in? It sounds easy right? You too can cut your time in half, save the effort and also improve the accuracy of your return – which translates to more money in your pocket.
You can create your account in under a minute for free and its secure.
To sign up to Spend Tracker or find out more about how Spend Tracker can help you with your finances, click here.
The information in this blog post is general in nature and does not constitute personal financial or professional advice. It is not intended to address the circumstances of any particular individual. We do not guarantee the accuracy and completeness of the information and you should not rely on it. Before making any decisions, it is important for you to consider your personal situation, make independent enquiries and seek appropriate tax, legal and other professional advice.
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