EMPLOYEES FAIL TO MAXIMISE TAX
Written on the 26 June 2015
AUSTRALIAN workers could be missing out on a hefty return come tax time by failing to lodge all entitlements, according to Officeworks.
A survey conducted by the office supplies chain found that more than half of employees are not taking full advantage of their tax time opportunity by not collecting receipts.
Young Australians make up the majority of those not reaching their tax potential, with 59 per cent of 18 to 24 year olds and 45 per cent of 25 to 34 year olds only claiming up to the threshold without having to provide a tax invoice.
As well as not claiming the full amount incurred during the financial year, workers were unable to determine which work-related expenses are deductible.
Over a third of those surveyed were unaware that petrol could be claimed, 28 per cent didn't know stationery was deductible and 34 per cent thought the same about uniform dry cleaning expenses.
The majority of Australians say the lodgement process could be simplified at 85 per cent, while 68 per cent believe a tax agent would help them maximise their tax return.
Finance expert Justine Davies says there are a number of simple solutions for people to set themselves up for success in the new financial year.
"It's concerning to see such a high number of working Aussies failing to recognise the advantage of stocking up on work-related items before June 30," Davies says.
"Being organised and implementing a sound tax plan from the beginning of each financial year is crucial in ensuring you'll get back what you're entitled to.
"Particularly when you're preparing your own tax return and unaware of the additional deductions and rebates available to you."
Davies says it's vital to not only file receipts, but to scan a copy as well to ensure they remain legible by June 30.
Officeworks has partnered with CPA Australia to provide tax advice and guidance until June 30.The survey questioned 1000 working Australians.