Behind the Numbers: Most taxpayers in the dark about their return result
Updated: Sep 14
Filing your tax return is something most Australians do each year, yet many are still left scratching their heads when they see the outcome. Whether it’s confusion over a smaller refund or complete surprise at owing money, the numbers simply aren’t adding up for a lot of taxpayers.
A recent survey by CPA Australia paints a clear picture: only 16% of Australians fully understand the results of their tax return. A further 37% have a vague idea, while a worrying 22% admit they have no clue at all.
So, why the disconnect?
Tax Changes Are Catching People Out
Much of this confusion can be linked to recent updates to Australian tax laws. Two major culprits stand out:
The end of the Low and Middle Income Tax Offset (LMITO)
The LMITO provided up to $1,500 in relief for eligible Australians. Now that it's gone, many taxpayers who relied on it for a refund boost are feeling the pinch.
Revised work-from-home deduction rules
The ATO has tightened the rules on claiming home office expenses. The new fixed rate method requires detailed records, including hours worked and separate documentation for energy, internet, and depreciation. Those who didn’t keep detailed logs could be missing out on hundreds of dollars in deductions.
Tax Agents Are Delivering Better Results
The CPA survey also highlighted the advantage of professional help. Here’s how refunds stack up:
Average refund overall: $2,331
Tax agent-prepared returns: $2,669
Self-prepared returns: $2,228
That’s a $441 difference on average when using a tax agent. Why? Because tax professionals know the rules inside out – especially the new ones – and they know where to look for legitimate deductions.
Who Should Be Seeing a Tax Professional?
Anyone with the following in their tax return should seriously consider expert help:
Investment or rental property income
Side hustle or freelance income
Cryptocurrency transactions
Capital gains from shares or property
Work-from-home expenses
Education and professional development claims
A tax agent can ensure everything is above board and help you legally maximise your return.
Take Control of Your Tax Outcomes
Tax season doesn’t need to feel like a lucky dip. To avoid surprises:
Keep accurate records year-round
Read up on any changes in deduction rules
Consult a tax agent, especially for complex returns
The system might seem complicated, but with the right guidance, you can navigate it with confidence. At
Dolman Bateman, we’re here to help you understand your tax return, not just lodge it.
Speak with one of our tax professionals today and take the guesswork out of your refund.
Disclaimer:
The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. All content relates to the current financial year only. Future changes to tax laws, thresholds or administrative requirements may affect the accuracy or relevance of this information, so you should always confirm that the guidance remains current. While every effort has been made to ensure accuracy at the time of publication, Dolman Bateman accepts no responsibility or liability for any loss or damage arising from reliance on this information. You should seek professional advice tailored to your circumstances before making any financial or tax decision.
