As we edge closer to tax time, Aussies around the country will be desperate to know how much they’ll receive from the Australian Taxation Office (ATO). Thankfully, you don’t have to wait until you get your tax return back as you can get a rough estimate from an online calculator.
Experts predict a large portion of the population will be reliant on their tax return to provide a bit of relief to their financial situations as a result of the cost of living crisis. Finder personal finance expert Sarah Megginson told Yahoo Finance there will likely be a tidal wave of tax return lodgements as soon as it hits July 1.
“People will be desperate to get their hands on their refunds with some needing it just to keep the lights on,” she explained. “It’s possible that a tax windfall could make life a lot more comfortable in the short term for millions of households.”
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How much am I going to get on my tax return?
This will all depend on how much you earn and what tax bracket you’re in. There are plenty of online tools like H&R Block’s tax calculator or paycalculator.com.au, which can estimate what you’re likely to receive from the ATO after you file your tax return.
The average Aussie earns $1,888 per week, according to the Australia Bureau of Statistics, which works out to be $98,176 a year. This person would have paid around $22,374 in tax over the financial year.
Using those numbers and no other deductibles, H&R Block’s calculator estimates the average worker would receive $1,964 from the ATO.
According to the tax preparation company, people who did their own tax return received an average refund of $2,576 in 2022, while tax agent clients received an average of $3,550.
Things that can affect your tax return include:
Your taxable income from wages, salary, investments, rental income
Tax deductions
Tax offsets or tax credits
Medicare Levy Surcharge
Family Tax Benefits
Residency Status
What are some of the deductions I can make?
This will wholly depend on what line of work you’re in. But there are many deductions you can submit to the ATO in your tax return. Tax expert Mark Chapman outlined how deductions can change between retail workers, those in healthcare, construction and others forYahoo Finance here.
But on a basic level, the typical deductions can include:
Car and travel expenses
Tools and computer equipment needed for work
Clothes and uniforms
Education and training seminars
Memberships, accreditations, fees and commissions
Meals, entertainment and functions
Personal grooming, health and fitness
Gifts and donations
Investments, insurance and super
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