Tax time countdown: Millions of Australians desperate for a cash injection
Key takeaways
- 18% of Aussies expecting a tax return say it is 'critical' to their financial wellbeing.
- Finder is giving away $2,500 in cash to one lucky Australian this EOFY.
- 15% of Australians are expecting a tax bill instead of a refund this year.
Millions of cash-poor Aussies are frantic for their tax refund, according to new research by Finder.
Finder's research shows 38% of Australians – over 8.1 million people – expect a tax refund this year. Of those, 18% admit the extra cash is 'critical' to their financial wellbeing.
That's an estimated 1.5 million taxpayers who are desperate for a tax time cash injection.
This number has doubled over the past year – up from 704,091 taxpayers who said they were desperate for their tax refund 12 months ago.
More than 1 in 3 (35%) refund hopefuls said their tax refund is 'very important' to their financial health, while a further 29% say it's 'somewhat important'.
Richard Whitten, money expert at Finder, said millions of Australians are counting down the days until tax refunds start landing in their bank accounts.
"For households stretched to the limit, a tax refund starts to look more like a financial lifeline than a nice little bonus.
"Many Australians have little room left in their budgets, so an extra few thousand dollars can make a major difference.
"It's really worrying that the number of people who say their refund is critical to their financial wellbeing has doubled in just 12 months. Households are still under massive pressure."
With the average Australian tax refund hovering at around $2,500, Finder is stepping in to effectively double that cash injection for one lucky Aussie.
Finder is running a cash giveaway this EOFY, handing one Australian $2,500 in cash to spend however they like.
Whitten noted that matching the average refund amount was a deliberate move to ease the pressure many are facing.
"We know the average tax refund of around $2,500 is incredibly meaningful to everyday Australians.
"By giving away that exact amount in cash, we want to give one person a massive head start on the new financial year."
Finder's research shows women are feeling the pinch the most with 60% admitting their tax refund is 'critical' or 'very important', compared to 47% of men.
Whitten said many taxpayers will use their refund to catch up on essential expenses and rebuild their financial buffer.
"For some, this money will go straight towards overdue bills, debt repayments or topping up savings that have been depleted by rising living costs.
"A tax refund can provide some much-needed breathing room, but it's important to think carefully about how you use it.
"Consider using the funds to pay down high-interest debt, boosting your emergency fund or making a contribution to your superannuation. This turns a short-term cash injection into long-term financial security."
Finder's research shows just 18% say this year's tax refund is 'not important' to their finances.
Almost one in six (15%) Australians are expecting a tax bill instead of a refund this year.
Credits
- PR & Insights research team: Taylor Blackburn, Kate Boddington, Natascha Kwiet-Evans, William Capada
- Survey operation: Qualtrics
Sources
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