Tax experts are slamming ‘whingeing’ Aussies for complaining about their tax bills, claiming it is not the ATO’s fault if they do not receive any money back.
About 14 million Australians have started prepping their tax returns, with many lodging their return since the beginning of July.
Aussies who were looking forward to some extra cash from a tax refund have shared their disappointment on social media after receiving a low return, with some even being hit with a tax bill.
The videos accused the Australian Tax Office of ‘robbery’ and ‘scamming’ everyday Aussies of their hard earned money.
But tax experts are hitting back at those complaining online about their returns claiming it’s not the ATO’s fault.
Founder and Director of Two Sides Accounting Natalie Lennon (pictured) said she is fed up with ‘whingeing’ Aussies and said those disappointed with their returns have not bothered to listen to great advice
Founder and Director of Two Sides Accounting Natalie Lennon is fed up busting the tax myths and replying to all the online rants.
The accountant responded to a video of a 23-year-old who shared a foul-mouthed rant after receiving a $2,000 tax bill.
‘Right, how the f**k do I owe the ATO $2,000 when I gave them $48,000. The government is f**king every c**t like aways,’ Tyrone Northrop said.
Ms Lennon, who goes by the name ‘Natalie the Accountant’ on TikTok and has over 20 years experience, asked Northrop to send her his return so she could look over it.
In a video shared to TikTok on July 28, explained she is ‘calling bulls**t’ on Mr Northrop’s whinge.
‘Because if you are going to whinge about your tax on here you better be sharing the details of your return and your income because I am calling BS on a lot of this sh*t and we’re fed up,’ Ms Lennon said.
In a follow up video on Monday, Ms Lennon explained why she was calling out those who whinge and whine on social media, claiming they ‘haven’t bothered’ to listen to great advice.
‘Now I’m calling bulls**t because a lot of these people who are whinging and whining on TikTok haven’t actually bothered to my advice and other people out there giving advice,’ she said.
‘Most of the errors that we are finding – people are sending me their tax returns and I am checking them – most of them are user errors from doing your own tax return.
‘It’ totally fine to do your own tax return if you’ve got attention to detail and know what you’re looking.’
Ms Lennon urged those who do not know how tax returns work to reach out for professional help.
‘Yes we care, yes we want to help, but we can only respond to so many comments and can only do so many videos,’ Ms Lennon said.
Sydney tax lawyer Harry Dell also shared a video battling tex return myths, claiming not getting a large refund and even being hit with a bill is ‘a much better outcome’.
‘I know this year a lot of people are saying ‘I’m very disappointed I didn’t get a few thousand dollars in my tax return, I even had a bill,’ Mr Dell said.
Sydney tax lawyer Harry Dell (pictured) also shared a video battling tex return myths, claiming not getting a large refund and even being hit with a bill is ‘a much better outcome’ (pictured)
Mr Dell gave an example of someone who lodged a tax return showing $80,000 a year of income and $10,000 deductions.
This means, the person’s taxable income would be $70,000 and they would have to pay $14,617 in tax and the Medicare levy.
Mr Dell added the person was taxed on $80,000 earnings with no deductions – so a higher amount of $18,000 withheld and would receive a $3,500 return.
‘It is great to get $3,500 but what you have done effectively is given the government an interest free loan for that income year,’ Mr Dell said.
‘Because on your pay slip when you have pay as you go withholding it goes straight to the government every single week, fortnight or every month.
‘So that $3,500 tax return is just your money that they are returning back to you after having it in their bank accounts for quite a while.
‘Tax return mentality serves the government. It gives them interest free amounts they can continue to spend on stuff and keep rolling it over because you are going to keep getting paid for your job and have pay as you go withholding and haven’t varied it.’
The change in this year’s tax returns is due to the low-and-middle income tax offset (LMITO) being axed by the Federal Treasurer Jim Chalmers.
The measure – which was always meant to be temporary – provided tax cuts of up to $1,500 to up to 10 million Australians over the past four years.
The change in this year’s tax returns is due to the low-and-middle income tax offset (LMITO) being axed by the Federal Treasurer Jim Chalmers
Battling Aussies are now finding out the hard way how heavily they relied on the offset.
Especially affected are people who owe money on an unpaid student loan debt.
More than three million former students will pay an average of $1,700 more on their HECS-HELP loan debt after student debts were indexed by 7.1 per cent on June 1.
The indexation increases the amount of student debt in line with the consumer price index, which increased 7 per cent in the 12 months to March 2023.
For people with outstanding student debt, salary packaging can also add to debts at tax time and explains why some may Aussies may owe the ATO rather than receive money back come tax time.
Salary packaging is an arrangement between a worker and their employer where staff give up some pre-taxable income in return for benefits of a similar value, such as more superannuation, a laptop and even children’s’ school fees.
Doing so means staff will pay less income tax each pay. Because that means your take-home pay increases, it can negatively affect the outcome of your tax return.