Gen Y’s are losing tax refund thousands

TECH-savvy Gen Y workers who save a few dollars by filling out their own tax returns could be missing out on earning higher returns according to a recent report in news.com.au

A survey by Bank West of NSW workers found 53% of Gen Ys fill in their own tax return well above the state average of 42 per cent.

While this eliminates the average $300 accountant’s fees, young workers in well-paid jobs could be overlooking expenses that would result in a higher return.

The Bankwest survey shows the average Gen Y worker expects to receive a $1937 return while Gen X should receive about $2822.

The average tax return nationwide is $2317.

Bankwest economist Tim Crawford said Gen Y felt more comfortable using online services, although they typically didn’t have a large share portfolio or property tax matters to consider.

However, graduates earning higher wages could potentially have expenses and other entitlements they are not claiming, he said.

Bankwest CEO Vittoria Shortt said the results also show workers are using tax time to get their finances in order.

Unlike previous years, most workers who receive a tax windfall will use the money to pay off debts or put it into their bank account.

Those who plan to spend their refund say they will treat themselves to a holiday or buy gadgets.

The poll also found 71 per cent are not relying on their refund to clear any immediate debts, while 6 per cent expect they will owe the tax office money.

Source: News.com.au