Beoz

If someone is a PAYG earner and this is there only souce of incoming, why do they need to do a tax return? In the UK a PAYE earner is generally taxed the right amount and doesn't need to file a tax return. From what I hear, generally everyone in Australia is due some tax back in a return. Why is this the case - isn't just easier to be taxed the correct amount upfront?

Amazulu

A million dollar question

renth

You can still deduct stuff like your mobo if you use it for work. Education tax rebate, uniforms.

Interest on loans for investment.

In fact there's loads of ways you can deduct stuff even if all you do it PAYE with no other income.

Pollyana

Because here pay offices quite often stuff up and tax you the wrong amount. Seven years with the government and they haven't got my tax right yet. Also because its a good excuse for more red tape, something this country excels at!

jothefw

Even sunscreen, computer purchases if used for your kids education.

I love the system - always get something back and I know it was mine to start with but it's always a nice bonus come August time.

Plus we use our own car for company travel, that's big nice pay back too.

Beoz

So you can claim sunscreen even if you sit in an office all day and never leave it other than to buy a sandwich?

Swerv-o

There's also stuff like interest income, rental income, overseas investment income and other unearned income that you will receive as a gross payment and the govt will want their share of.

Not everybody gets money back - my first two years here I ended up with huge bills from the ATO.


S

Phlanger

You have great faith.

Generally maybe, but not always - I managed a rebate 5 years on the trot in the UK even after I gave up being self employed.

jothefw

I didn't say that.

I don't do that and you didn't state that that was your plan either.

If you have a legitimate right to claim it, then claim it. Don't, if you don't. In the UK, legitimate or not, you would be hard pushed to get something as basic as sun protection back.

pink13

Have to say even though i haven't delt with with nice Auzzie tax man yet, i like him a lot........ in my line of work i can claim for a lot, and that isn't claiming for things i don't use just being honest and looking forward to a nice sum of money, unlike the English tax man, he is a pig

Vash the Stampede

"Generally" being the operative word. I received a £1,600 tax return during my last year in the UK, which included tax owed to me from 2004. I'd had to hunt it all down myself, because the Inland Revenue certainly had no intention of paying it back.

I hate the ATO tax pack, which is why I send it to my accountant every year. But I do prefer the fairness and transparency of the Australian system. In the UK you can never be quite sure the government isn't ripping you off unless you personally apply for a tax return. If you don't say anything, they just hang onto your money and hope you'll never notice.

ABCDiamond

The availability of many Tax Deductions in Australia is the answer.

In the UK it is generally one standard tax system, with minimal tax deductions available, but here, so many things to claim for, and most people get a rebate each year.

If we adopted the British system, most of us would lose out on many of those tax rebates.

In 2006-07 the number of tax refunds given was 9.9 million, out of the 11.8 million taxpayers.
In 2008-09 the average refund was $2,351.

If no deductions are claimed, the refund would normally be under $100 these days.

commonwealth

from what i remember wayne swan said they're studying ways to ditch the ITR

ABCDiamond

Think he was saying to give everyone $500 fixed rebate, in exchange for no return... and rising to $1,000 from July 2013.

No thanks

Sherlock Holmes

It's a wonderful system. Especially if you are self employed. I don't have to pay SOME of my tax until March of the following year.

Yes the general overtaxation on PAYG is a bit silly and yes you could have had that money invested but generally, the rebate makes up for that.

Tax accountants charge little (get a personal recommendation) and save you a fortune. You'd never guess at the allowances yourself.