How to calculate your tax return

While tax time can feel like a bit of a drag, the average Aussie is set to get back $2,900 this year, and there are ways to figure out exactly how much you may be entitled to.

The median Aussie income is $50,980, according to the Australian Taxation Office (ATO), and someone earning that amount would have paid $7,035 in tax.

Using the H&R Block tax calculator, and not taking into account any other deductibles, that person would be entitled to a $715 tax refund.

The average Aussie income is a bit higher, at $68,289. Someone earning this figure would have paid $12,661 in tax. This person would receive $134 back.

 

Why is the average refund $2,900?

There are a number of reasons why people get a tax refund, and it has to do with a combination of tax offsets – like the low-income tax offset – as well as deductions.

Aussies who work from home for example can claim deductions for their phone and internet usage during the hours of the day they are working.

They can also claim deductions for office equipment and stationery they may have had to purchase for their job.

Those who work outside can claim deductions for things like a jacket, or sunscreen.

The ATO website has an extensive list of certain claims Aussies can make depending on their profession. These include:

  • Car and travel expenses
  • Tools and computer equipment needed for work
  • Clothes and uniforms
  • Education and training seminars
  • Memberships, accreditations, fees and commissions
  • Meals, entertainment and functions
  • Personal grooming, health and fitness
  • Gifts and donations
  • Investments, insurance and super

There are a number of things you can do to maximise your tax return before June 30, including making charitable donations or making additional contributions to your superannuation.

 

article from: au.finance.yahoo.com