New data has revealed that a quarter of Aussies plan on putting their tax returns towards bills this year.
According to MYOB, three in ten Australians expect their income to be lower, with 71 percent of people who had a drop in income saying the coronavirus is to blame.
25 percent of Aussies plan on using their return to catch up on bills, while 23 percent will invest it, 16 percent don’t believed they’ll get enough to do anything with, 13 percent will supplement their lost income as a result of COVID-19, and just 10 percent will look at paying for a holiday.
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MYOB Economist Jon Manning says the latest survey results indicate tax time will be very different this year.
“This has been a year like no other and many Australians will be in a different financial position to where they expected to be 12 months ago,” he said.
“This year sees more complexities with new stimulus packages to factor into tax time; a fifth of survey respondents were on either JobKeeper or JobSeeker.
“In addition to new elements to factor into their tax this year, a lot of Australians will be tightening their belts preparing for a recession.
“It’s more important than ever to work with a tax agent to maximise your return,” Mr. Manning said.