As you may know, it’s tax time again. Payment summaries are being finalised, and receipts are being filed in preparation for what is hopefully a nice sum of cash in return. But what is the average amount for an Aussie tax return in 2024, and how can you make sure you get the right amount? We asked the experts.
What is the average tax refund amount in Australia?
The amount you receive in your tax refund depends on how much you earn, what you claim and which tax bracket you fall under.
According to a spokesperson from the Australian Taxation Office (ATO), the average refund in the 2022-23 financial year was $2,800.
They said, “As at 18 June 2024, more than 10.5 million individual 2023 refunds have been issued, totalling more than $29.8 billion with an average refund of around $2,800”.
Should you do your tax return yourself or use an accountant in 2023?
We spoke with H&R Block’s Tax Communications expert Mark Chapman a few years back about this topic, and he shared there is some evidence that using a tax agent further benefit your return.
According to Chapman, H&R Block’s records indicate that the refund for those who used a verified tax agent in the 2021-22 financial was close to $1,000 more, on average, than self-lodged claims. However, factor into this figure that your agent will need to take a cut from the return as well.
While practical in some cases, using an accountant isn’t the best answer for everyone, and an ATO spokesperson shared with us a few years back that the best way to lodge a tax return will depend on each individual’s circumstances.
“People with simple affairs may find it easy to lodge online using our free platform, myTax. Lodging with myTax can take less than 30 minutes if you lodge at the end of July when most pre-fill information is available,” an ATO spokesperson told Lifehacker via email.
“People with more complicated affairs, may find it beneficial to engage the services of a registered tax agent, to help them understand their entitlements and obligations. Remember you are responsible for the information in your return even if you use an agent.”
If you need help choosing a tax agent we’ve got some tips that may help you.
This article has been updated since its original publish date.
Lead Image Credit: iStock/Netflix
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