That’s the view of tax experts who point out that the jump in job numbers in the second half of this financial year means many of the newly fully employed will be pocketing large tax refunds.
The number of employed Australians reached a record 13.4 million in February, up more than 550,000 in five months, including about 300,000 full-time roles, according to the Australian Bureau of Statistics. In addition to the additional refund for working a part year, more than 10 million taxpayers will also receive a boost to their tax refund this year thanks to the low- and middle-income tax offset. The temporary tax measure will offset taxes by up to $1500.“The [Pay As You Go] system means that your employer is withholding tax each time you get paid, according to which income tax rate applies to your salary,” said Julie Abdalla, tax counsel at professional body The Tax Institute.
Peter Bembrick, a partner in tax services at mid-tier firm HLB Mann Judd Sydney, agreed that the data showed that a certain segment of the population had not been working the entire year, meaning “more people would be due a tax refund, and the average refund for those people would tend to be larger”.