Behind the Numbers: Most taxpayers in the dark about their return result

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:

1. 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.

2. 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.

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Disclaimer:

The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. While every effort has been made to ensure the accuracy of this content at the time of publication, tax laws and regulations may change, and individual circumstances vary. Dolman Bateman accepts no responsibility or liability for any loss or damage incurred as a result of acting on or relying upon any of the information contained herein. You should seek professional advice tailored to your specific situation before making any financial or tax decision.