How Have You Gone with Your Tax Return?

geekcohen on 21/08/2023 - 09:25
Last edited 21/08/2023 - 09:26

So my wife and I did my tax through my accountant over the weekend as I have done for many years. Yes, I know we could do it ourselves, but it's just easier (especially since I have an ABN).

I have heard mixed results about how people have gone compared to the past. I have heard some people having to pay, some getting a return and if they get a return it is very small. The Low and middle income earner tax offsets ended which impacted people.

How did you fair?

I have to pay, mainly because of the ABN side of things but its less than $1k.
My wife is getting a nice return, over $2k.

Be interesting to see how the OzBargain community went.

Poll Options

  • 173
    I am yet to complete my return
  • 71
    I got a refund
  • 55
    I have to pay
  • 8
    I pretty much break even
Financial Income Tax Return

Comments

  • onetwothreefour on 21/08/2023 - 09:30
    +2

    I haven't had a tax return of more than $100-200 in years, this year I owed $100.

    • Thenarrator on 24/08/2023 - 14:39

      mostly like because you didnt put as much deductions

  • CyberMurning on 21/08/2023 - 09:41
    +1

    nice return, over $2k.

    How?

    • djkelly69 on 21/08/2023 - 10:01
      +30

      Evidently she paid more tax than she was ultimately required to throughout the year.

      • xylarr on 22/08/2023 - 13:14
        +3

        Yes, a big return basically means you have the government an interest free loan for a year.

  • Benoffie on 21/08/2023 - 09:41

    I got a return but 99% was overpaid taxes and HECS. The actual return was worth about $500.
    As far as Im concerned, as long as i dont owe the ATO, we're good.

    • geekcohen on 21/08/2023 - 13:26
      +1

      As far as Im concerned, as long as i dont owe the ATO, we're good.

      Thats what my father in law says, "The day I have to pay to work, I am done".

      • RMBC on 22/08/2023 - 09:09
        +4

        This is what I don't understand, he has to pay taxes regardless, so he's in effect saying he'd rather the government held more of his money for longer than is necessary, than have the use of it and pay the government when due

  • [Deactivated] on 21/08/2023 - 09:47
    +1

    I got just under a grand, missus got $8K+ mostly due to study and overpaying her HECS.

  • dtc on 21/08/2023 - 09:47
    +3

    The 'benefit' of running a business is that you dont PAYE so every tax return is totally variable - has your estimated income (which you PAYG on) matched your actual income. If yes, all good. If actual < estimated, tax return ASAP for the refund. If actual > estimated, tax return in May next year. Yes you can vary your PAYG during the year if actual is significantly lower than estimated but income does vary over the year.

    Not quite sure about the question though, if you are a PAYE like the vast majority of people, then 'how did you fair' in your tax return isnt a game of chance or discretion. Its just what it is. If you get a refund its because you happen to have a few deductions, if you own money then its because you had other income (if you dont have a mortgage, quite likely this year given interest rates). Getting a refund is often a bad thing - much prefer to have to own tax.

    • [Deactivated] on 21/08/2023 - 11:12

      what's the difference between PAYE and PAYG?

      • dtc on 21/08/2023 - 14:35

        Probably should have called them PAYG (withholding) and PAYG (instalments).

        The former is what employees have, their employer takes out a chunk of wages every pay for tax. This is always accurate except when you either have deductions or non employment income.

        The latter is when you arent employed, you pay instalments towards your tax based on estimated income. This is hardly ever accurate since business earnings are so variable.

  • freefall101 on 21/08/2023 - 10:04
    +21

    The whole getting a return vs having to pay is misleading, getting a nice return simply means having overpaid tax throughout the year.

    I got <$1k return because my tax was calculated properly on my income, I had quite a few work expenses this year but they were offset by investment income. That's basically how it should be.

    People are getting smaller returns this year than last mostly because the low/middle income tax offset was removed, that's all that is different. If you're constantly getting large refunds (proportionate to your income) then likely withholdings are too high.

    • ozbargainsam on 21/08/2023 - 11:40
      +9

      Exactly.

      The ATO is not some divine being that 'blesses you' with a tax return or 'smites you' with a tax bill. It's money that the tax office got extra from your employer (assuming no deductions, and salary) and is just giving back to you, or you paid less and now you need to give back. All the rules are public info.

      Illustrative example: suppose your employer withholds 2% of your pay and at the end of the year they give it to you. Suppose it's all transparent but you never read the contract etc. How do you appreciate it? Is it a gift? Or is it a 'I could've used that money at the time/saved it'. It's the same with the ATO.

      In a perfect world for a PAYG, you neither owe tax or get a return. In a hypothetical situation, you pay zero tax during the year and have a big bill at the end (those running a business or on contract will know this as your quarterly BAS). This way the tax you'll be paying later earn interest or whatever.

      If you're bad at saving, though, the forced saving can be a benefit (return) or if you're bad at saving, the tax bill is a curse (bill).

      • [Deactivated] on 21/08/2023 - 12:39
        +2

        I'm glad there's these reasonable responses explaining exactly how it is.

        Thanks to you both - otherwise I was going to say the same thing.

      • Benoffie on 21/08/2023 - 20:02

        Unfortunately it's a circumstance some cant avoid.

        I get taxed on my potential earning ($104k at my level as a TRT teacher). But then there's the days worked (max 200, never happens).

        Im averaging $30-40k pa gross when I dont score a contract. Itd be great if the department and the ATO were able to figure out a better way of withholding tax, but i cant see how 🤷‍♀️

  • Xistn on 21/08/2023 - 10:05

    I'm still scratching my head that this year for a first ever (nothings changed really) I'm paying tax…

  • Gdsamp on 21/08/2023 - 10:08
    +1

    $1.5k owing:

    • Divested shares at a (rare) profit
    • Sal Sac'd into super while still having HECS
  • eek on 21/08/2023 - 10:10
    -2

    Generally have $10K+ returns due to negative gearing on real estate. Over-pay tax every year :(

    • daleyboy79 on 21/08/2023 - 11:17
      +4

      FYI - theres a form you can submit to tax office to get your weekly tax reduced if you know your going to get a big refund at the end of every yr due to neg gearing

  • Archi on 21/08/2023 - 10:12

    i got a return of $41.80

    • montorola on 21/08/2023 - 12:29
      +4

      Save the $41, spend the $0.80 on a maccas cone.

  • SBOB on 21/08/2023 - 10:17

    Did it over the weekend, biggest combined family tax bill we've ever had :)

  • MustardKetchup on 21/08/2023 - 10:23

    6.4k return
    lots of mil reserves and leaving a full time job that I hated :P

  • fredz0r on 21/08/2023 - 10:30

    Both wife and myself got health returns 7k and 13k. We both get monthly commissions so overpay in tax. Have an investment property which is slightly negatively geared and paid extra into my super. Big chunk of my wife hecs got paid off as well.

  • Shadowsfury on 21/08/2023 - 10:32

    did it over the weekend too actually
    wife - refund about $1500
    me - refund about $5200 (neg gearing of property and shares, donations, some super contributions) - usually I get like $2-4k

    I would rather owe the ATO money as an earlier poster said though, so I actually submitted a PAYG variation form yesterday after doing my return.

    (I used to use an agent but they were getting too expensive to stomach so DIY this year)

  • Ozbar Gain on 21/08/2023 - 11:00
    +1

    We got a couple grand between the wife and I but only because:
    1. one of us works casually (overpaid in tax)
    2. we maximised out first home super saver contributions

    FHSS is a great system 👍

  • dogboy on 21/08/2023 - 11:17

    I don't understand tax in this country. I pay more in tax than my wife earns but every year sees me having to pay more or only just getting a tiny amount back while the wife gets a couple thousand in return. I am donating max to charity, extra super contributions, negative gearing on property and try to claim depreciating assets but yet always seems I owe more. Using an accountant every year as well and paying almost $60k in tax! One year I spent almost $20k on necessary work on my investment property and that year I got a return .. of about $200. My biggest return in about 10 years. None of this makes any sense to me.

    • [Deactivated] on 21/08/2023 - 11:52

      Do you have a hecs help debt?

    • hothed on 21/08/2023 - 11:53
      +6

      If you pay 60k in tax that puts you at ~185k in income for the FY, after deductions. Congratulations!
      If you get a tax refund, you've given the ATO an interest free loan for the financial year, not great from an ROI perspective.

      Expenditure over $300 to be deprecaited over useful life. Ask your accountant to explain it to you… that's why you pay them.

    • BigBirdy on 22/08/2023 - 08:37

      Go thru your tax return until you understand how it works. If you have all those deductions but still aren't getting a decent refund, it means you must have been underpaying tax on some earnings.

    • RMBC on 22/08/2023 - 09:15

      If your accountant can't explain it to you, then you need a new accountant

      Most individual tax is not that complicated, there are just a lot of rules; that investment property work for instance was likely capital in nature, meaning the cost is deducted over multiple years, indeed up to 40 depending on what it was for, hence why the deduction wasn't large

  • DingoBilly on 21/08/2023 - 11:55

    Was actually quite happy to only have to pay back $900 or so this year.

    I had a large untaxed capital gain of $9000 I cashed out in the last year so was thinking it'd be closer to $3000 overall, so am happy with a small win.

    Now just holding off submitting as long as possible to maximise the offset account.

  • md333 on 21/08/2023 - 12:14
    +1

    I'm going to have to pay $7,000. This is good because I'm keeping that money in the bank earning 5% until it is due. A bit worried it is going to trigger the ATO to start asking for periodic payments next year though.

  • payless69 on 21/08/2023 - 12:15
    -1

    I live in QLD and hand out folded money like so many do in the biggest growth industry…..

  • BewareOfThe Dog on 21/08/2023 - 12:31
    -1

    I did it myself, using what my accountant submitted last year as a guide. I also have an ABN, but didn't do much, as I was working 3 different jobs (plus an election).

  • brad1-8tsi on 21/08/2023 - 18:05

    I was going to have to pay $1k so I turned my non-concessional super contributions into concessional contributions and got $6.5k back. The $26.5k of contributions then got taxed 15% (($3975) so I've just shifted the issue elsewhere.

  • original15 on 21/08/2023 - 19:06

    Modest return $600, thanks to work related deductions. wife $1600 return
    Last year was a great return, 4k, year before 3.5k
    Before that had two years owing 2-3k

  • USER DC on 21/08/2023 - 20:03

    everytime it bring me more chaos and anger and cries.
    Dont think this time gonna be any different.
    Hate this time, too much work collecting information etc. and paying accountants (they charge way way too much honestly)

    • geekcohen on 22/08/2023 - 08:39

      and paying accountants (they charge way way too much honestly)

      Costs my wife and I about $360 a year to do our return. Plus it is claimable each year.

      Hate this time, too much work collecting information etc

      If you keep on top of it throughout the year, it makes things easier. I am now using Xero and collecting everything into that. Link bank accounts for easy tracking and then just snap receipts and upload all through the app.

  • thrillhouse on 22/08/2023 - 07:57

    My wife got 16k back this year, and tends to fare similarly each year. I believe it’s something to do with her previous HECS and her employer continuing to deduct. So she’s clearly overpaying throughout the year.

    Me on the other hand, not so fun. Paid 26k BACK at tax time last year and I’m going to expect something similar again (and that’s after maxing my super out, thousands of deductions etc).

    Win some, lose some. I can’t complain either way, I’m obviously in a privileged position. I don’t mind paying tax, but I do get the shits when those making exponentially more than me do not.

    • geekcohen on 22/08/2023 - 08:38
      +1

      My wife got 16k back this year, and tends to fare similarly each year. I believe it’s something to do with her previous HECS and her employer continuing to deduct. So she’s clearly overpaying throughout the year.

      Why does she not tell them to stop? Then you would get more in the pay packet each pay cycle.

      • thrillhouse on 23/08/2023 - 08:31
        +1

        I believe she had (or at least tried). I'll quiz her on that! There was a reason.

  • BigBirdy on 22/08/2023 - 08:43
    +1

    Make a concessional contribution to your super and get charged 15% tax on it instead of paying your marginal tax rate (+ Medicare). Easy savings

    • RMBC on 22/08/2023 - 09:17

      Except your forgo the money until retirement, and given how much the rules are played with around super, it isnt the clear benefit it once was

  • Piratarzt on 22/08/2023 - 09:23

    I have a calculated refund of 15K. Whether this ends up happening, will be determined. I have however consistently gotten refunds of 10-20K.

  • Odin on 22/08/2023 - 10:31
    +1

    You guys know that getting a return means you overpaid during the year?

    That means you potentially lost money that could've been better invested earning your interest or dividends.

    Unless you made an investment loss during the year or had a big donation resulting in a deduction, "getting a return" is kind of a bad thing and it shows you're not managing your money as good as you could be.

  • Chewy2221 on 22/08/2023 - 14:26

    I am amazed that anyone would fall for the myth that an accountant/tax agent will somehow obtain a higher refund for a client than the (motivated) client could obtain themselves. I am also amazed that there is a perception (likely promoted by the "tax" industry), that the tax agent will somehow defend the taxpayer in the event of a dispute with the ATO. The tax agent signs a declaration that s/he has prepared the return using information provided by the taxpayer. In other words, you are on your own if the ATO comes knocking.

  • Gnilgorf on 23/08/2023 - 12:48

    Got a few hundred in return this year, compared to a few thousand in previous years.
    Half expected as Inv. prop & side business negated all the deductions.

    I used to go to an accountant (along with the rest of my family), so we got a bulk discount of sorts xD
    But now I self lodge seeing as my circumstances aren't overly complicated. My wife's on the other hand…yep still needs an accountant.
    With that said, I did learn a lot from the accountant back in the day, which definitely gave me a bit more confidence self lodging and understanding what I can or can't claim, as well as how to claim a variety of things.

  • swiggity123 on 23/08/2023 - 16:50
    +1

    Got $6500, overpaid in HECS but theres a few things you can claim when working in health, like insurances, and registrations plus transport and phone.

    Medicare is a killer tho - always hits me by surprise

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