The largest private survey of taxpayers has found that “gathering receipts” for expense deductions is the biggest ‘gripe’ in taxpayers organising their own tax returns – but the average time investment in organising your tax can pay a solid rate of hourly return.
The online survey of 5,410 taxpayers, conducted exclusively for H&R Block, reveals key insights into tax preparation.
As more than 12 million taxpayers will lodge returns this year, Australian taxpayers provided an insight into a range of issues, including the biggest hassles they confront, and the hours they spend completing their returns.
“Taxpayers need to know, if they have work related expenses, every legitimate receipt can put money back into their pocket,” said Frank Brass Regional Director, H&R Block.
“It is not surprising that receipts, investment income statements and logbooks are the biggest hassles for taxpayers at tax time; but given the average total time estimated by respondents to complete their tax return is just over three hours, the small investment of time can have a big financial return on those hours.”
Mr Brass said the average tax benefit from deductions was $950 two years ago, which means an average return per tax hour of $316.66.
Despite the complaints, the estimated time taken to complete tax returns was slightly less last year than in previous years.
“While the survey was conducted prior to the recent announcements of changes to Fringe Benefits Tax on motor vehicles, maintaining log books ranked the third highest hassle for taxpayers,” said Mr Brass.
However, those who maintain a log book – which is only required for a relatively short period of the year – are also not affected by the changes to the FBT announced by the Government, despite the inaccurate claims of many individuals and organisations.
“If you think of your tax return as a return on your time investment, getting receipts organised throughout the year means less hassle at tax time and a bigger return per hour of ‘tax work’,” said Mr Brass.
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