Taxing times: 64% of Aussies think they pay too much tax
Millions of Australians think too much of their salary goes towards paying tax, according to new research by Finder.
A Finder survey of 1,004 respondents revealed almost 2 in 3 (64%) Australians – equivalent to almost 13 million people – believe they pay too much money in tax each financial year.
Millennials (80%) are more likely than all of the other generations to say they pay too much tax, followed by gen X (72%). This is compared to gen Z (63%) and baby boomers (39%).
Sarah Megginson, personal finance expert at Finder, said the cost of living has wreaked havoc on our personal finances.
"Budgets are stretched thin, with many struggling to make ends meet.
"While inflation is trending downwards, the financial burden remains heavy for a significant portion of Australians."
Fortunately, relief is only a few months away. As of July 1, the government has announced it will deliver tax cuts to Australian taxpayers to deliver cost of living relief.
This comes as almost 1 in 4 (23%) reveal they feel terrible or pessimistic about their financial future.
Finder crunched the numbers and Australians earning between $45,000 and $135,000 a year will be getting a further tax cut of $804, on top of the previously announced cuts – meaning they will be hundreds of dollars per month better off overall.
That means someone earning the median Australian income of $83,200 will get a $1,759 tax cut over 12 months, almost double the previous $955 tax cut.
Those earning over $200,000 a year will get around $4,529 under the new stage 3 tax cuts, instead of $9,075 under the old stage 3 tax cuts.
Megginson said the cash injection will provide some welcome relief from cost of living pressures.
"Those struggling with everyday costs will see more money back in their pocket to help battle expenses.
"If your budget allows, stashing some of this extra cash is a wise move. Every bit helps build a buffer for those unexpected rainy days.
"You can also potentially save thousands by switching some of the services you pay for anyway.
"If saving isn't an option, use the extra money to pay down debt and bills, to alleviate some financial pressure," Megginson said.
Do you think you pay too much tax?
| Yes | No | |
|---|---|---|
| Gen Z | 63% | 37% |
| Gen Y | 80% | 20% |
| Gen X | 72% | 28% |
| Baby Boomers | 39% | 61% |
| Average Australian | 64% | 36% |
| Source: Finder survey of 1,004 respondents, January 2024 |
Go in the draw to win a $1,000 ALDI shopping spree by taking part in Finder's Financial Fitness Challenge.