More than 10 million Australians expect a tax refund averaging $1,519 this financial year starting July 1. This will bring about $15.3 billion back to households across the country, providing much-needed financial relief amid ongoing economic challenges. The information comes from a recent survey conducted by the comparison site Finder.
The survey found that 47 percent of taxpayers expect to receive a refund after July 1. Almost one in four respondents said the refund was very important to their financial health, while 41 percent said it was somewhat important. Many Australians live paycheck to paycheck and rely on this cash injection to help manage rising living costs.
Women appear to feel the pressure more than men, with nearly 40 percent saying the refund is critical or very important to their financial wellbeing, compared to 24 percent of men. This reflects the uneven impact of financial pressures across different groups in Australia.
Experts advise using tax refunds wisely by paying down debts, adding to savings, or making voluntary contributions to superannuation. For those without an emergency fund, using the refund to build three to six months of essential expenses could provide important security for the future.
Not all Australians expect a refund this year. Around 20 percent anticipate owing tax, while 35 percent said they did not pay any income tax. Inflation has been a significant factor affecting many households, rising by more than 20 percent since early 2020. The consumer price index peaked in 2022 with prices rising 7.8 percent in the 12 months to December.
A previous survey by Finder before the end of the 2024 financial year showed over nine million Australians expected an average refund of $1,288, totaling $12 billion returned to taxpayers. Among those expecting refunds, over three-quarters said the money was important or very important to their financial wellbeing.
