July 2013

Taxing Times Report

Introduction
At least 900 individuals nationwide have been anonymously surveyed to assess their tax return experiences and expectations in the 5th annual Bankwest Taxing Times Report 2013. The Bankwest Taxing Times Report assesses aspects such as the amount Australians expect to receive/pay in tax this financial year, the cost involved with lodging a tax return, difficulties completing tax returns, and how they plan on spending any refund they might receive. The research also looks at SME owners and how they deal with their business tax. The research is carried out by CoreData via an online survey sent to Australians aged 18 years and over in May 2013.

This research was prepared by: CoreData Consulting

Introduction

Key Findings
Economic context Despite predictions by the Federal Government in the past that total tax revenue in Australia would grow substantially in nancial year 2011/12, since the 2012-2013 mid-year economic and fiscal outlook tax receipts have in fact been revised down by around $60 billion over the four years to 2015-16. The Government reports that tax receipts have been significantly affected by weaker than expected nominal GDP growth. This fall in company tax receipts has been compounded by lower than expected capital gains tax and resource rent taxes (Federal Budget). Despite continued global uncertainty, the International Monetary Fund still predicts Australias GDP will grow by 3% in 2013 (IMF 2013 World Economic Outlook). According to latest figures available from the ABS, on a seasonally-adjusted basis, national total Average Weekly Earnings increased by 2.7% in the six months to November 2012, with the average Australian earning $56,228 per annum and the average full-time worker earning $75,650. Research findings The Taxing Times report reveals that overall in Australia the average expected tax return has remained stable at $2,033 FY 2012/2013 from the $2,017 observed last year although this masks some state divergence. This is down approximately 12% from 2011 when the average return was $2,317, and approximately 18% on the expected return in 2010 ($2,473). State separations appear to largely reflect their relative positions in the economic cycle suggesting that the boom for WA and QLD is coming to an end while business conditions are potentially beginning to pick up in VIC. While respondents from WA expect the greatest increase ($2,291 to $2,691) and largest return compared to other states, only respondents from VIC expect a smaller income tax return on average this year ($2,348 to $1,950). Largely in line with these previous observations around income tax return expectations, VIC respondents expected to pay considerably more income tax this year on average ($2,930 to $5,528) while WA respondents expected to pay considerably less additional income tax this year compared to last year ($4,468 to $2,985). Interestingly, QLD respondents also report expecting to pay much less additional income on average this year ($4,925 to $2,821). SA respondents had the lowest expectations for paying additional income tax this year ($1,258). The proportion of respondents who expect to receive a tax refund has dropped to 64.8% in FY 2012/13 from 72.7% last nancial year, while the proportion of people expecting to break-even has increased to 19.1% from 14.1%. Over half of respondents (56.5%) who expect to receive a refund in 2013 believe they will receive a refund of less than $1,000. Two in ve (35.5%) expect to receive a refund between $1,000 and $5,000, and only 8.0% expect to receive a payment of $5,000 or more. The majority of respondents (50.3%) pay an accountant to prepare their tax return, while 39.6% do it themselves. A minority outsource the lodgement of their return to family or friends (6.6%). Filing tax returns online is clearly the most popular approach for respondents (87.6%), in line with the past two years.

Key Findings

The top sources of intended deductions this year are gifts/donations (55.5%) and the cost of managing tax affairs (39.4%), despite both losing some marginal ground from last year. However, it is interest deductions ($8,066) and non-employer sponsored super contributions ($7,538) that garner the greatest amount of actual dollars claimed by individuals on average still far outweighing other sources despite the fact the average claim from both of these sources has dropped considerably from last year. The most common types of offsets respondents report include franking credits (30.3%), low income (15.3%) and medical expenses (14.3%) despite all decreasing marginally from last year. As in past years, the majority of respondents report that they do not rely on their tax return (73.5%). Consistent with findings from the last two years, the majority of Australians are still taking a conservative approach to the use of their tax returns in 2013. For respondents that are expecting to receive a tax return, over a third (35.6%) plan to use the money to pay o debt, while 31.5% plan to save their tax return. Opinion is somewhat divided around whether tax returns have become easier or harder over the years with nearly half (45.6%) thinking they are easier, nearly a quarter (23.2%) thinking they are in fact harder and the remaining 31.2% reporting no change. Predictably, the majority of respondents agreed that they love getting money back from the government (83.6%) and hate having to pay additional tax after making their return (69.0%). At least a half think the tax jargon is too complicated and confusing (52.9%) and that the system is too complicated (51.3%). Furthermore, many are always uncertain about what they are allowed to claim (43.6%), feel it is a hassle having to find all the documents/receipts required (37.7%) or worry about committing legally to the final figures (32.3%). While over half consider preparing a tax return OK if following instructions (57.9%), at least 22.2% believe it is too difficult to complete. Of those that feel it is too difficult, most cite difficulties in calculating deductions (70.5%), followed by unclear explanations (38.9%) and difficulties filling out the form (35.3%). However, most respondents would still prefer to fill in a tax return (63.9%) than receive a standard tax rebate (30.6%). This year SME owners tended to increasingly prioritise using returns for personal purposes over investing back in their business. Increasingly, these respondents seek to pay off personal debt with their business return (25.7% up from 16.2% last year) or contribute to personal savings or expenditure rather than paying off business debt (14.3% down from 25.4%).

Key Findings

Tax Refund/Payment
While most still receive a refund this has been steadily decreasing over the last three years While the majority of respondents (70.8%) report receiving a tax refund last year, this has been steadily declining since 2011 where this proportion was as high as 81.1%. Conversely there has been an increase in those reporting paying additional tax last year (14.5%). While receiving a refund steadily decreased with age, breaking-even is much more likely among the oldest generations. Did you receive a tax refund or pay additional tax last year?
100 81.1 75 76.7 2011 2012 2013

70.8

50

25 10.3 11.5 0

14.5 6.5

7.9

9.8

2.2

3.9 Other

4.8

Received refund

Paid additional tax

Broke even (no refund, no payment)

Expectations for this year show increasing proportions of respondents predicting they will break even on their returns (19.1% up from 12.0% in 2011), with less expecting a refund (64.8% down from 78.4% in 2011). Do you expect to receive a tax refund or pay additional tax this year?
100 78.4 75 2011 2012 2013

72.7 64.8

50

25 6.2 0 Receive refund 9.4 9.6

12.0 14.1

19.1 3.4 3.9 Other 6.5

Pay additional tax

Break even (no refund, no payment)

Tax Refund /Payment

Tax return received varies by state Actual and expected refunds remain relatively stable in Australia overall despite some divergence among states While overall across Australia there is only a small drop in the average income tax refund received by respondents from FY 2011/12 to FY 2012/13, focusing in on at the state level shows this varies considerably. Respondents from NSW/ACT and QLD report slight increases in income tax refunds while those from WA report a relatively large increase of over $400 on average ($2,508 to $2,977). WA respondents also report considerably higher total returns for both years than other states. Meanwhile VIC ($2,439 to $1,969) and SA ($1,807 to $1,616) report considerable drops in the average income tax refund received over this period with SA respondents reporting the smallest returns in both years compared to other states. On average, males tended to receive considerably higher refunds than females ($2,513 vs. $1,602) and also report paying more additional income tax ($3,839 vs. $1,657). How much income tax refund did you get last year?
$4,000 2012 2013

$3,000 2,138 2,171 $2,000 2,439 1,969 2,042 2,172 1,807 1,616

2,977 2,508 2,230 2,148

$1,000

$0

NSW

VIC

QLD

SA

WA

Australia

Tax return expectations Looking at Australia overall there is little change in income tax return expectations this year compared to last year, remaining stable at just over $2000 ($2,017 to $2,033) - although this tends to mask state based differences. While respondents from WA expect the greatest increase ($2,291 to $2,691) and largest return compared to other states, only respondents from VIC expect a smaller income tax return on average this year ($2,348 to $1,950). As for last years actual returns, on average males tended to expect considerably higher refunds than females ($2,474 vs. $1,365) and also expected to pay more additional income tax ($4,140 vs. $2,419). How much income tax refund do you expect to receive this year?
$4,000 2012 2013

$3,000 2,348 $2,000 1,730 1,955 1,950 2,116 2,202 1,630 1,683 2,291

2,691 2,017 2,033

Tax Refund/ Payment

$1,000

$0

NSW

VIC

QLD

SA

WA

Australia

Largely in line with these previous observations around income tax return expectations, VIC respondents expected to pay considerably more income tax this year on average ($2,930 to $5,528) while WA respondents expected to pay considerably less additional income tax this year compared to last year ($4,468 to $2,985). Interestingly, QLD respondents also report expecting to pay much less additional income on average this year ($4,925 to $2,821). SA respondents had the lowest expectations for paying additional income tax this year ($1,258). How much additional income tax do you expect to pay this year?
$6,000 5,528 4,925 $4,500 3,413 $3,000 2,930 2,821 1,814 $1,500 1,258 4,468 3,968 2,985 3,547 3,539 2012 2013

$0

NSW

VIC

QLD

SA

WA

Australia

Tax Return Use

Majority of respondents looking to pay down debt or save As found in recent years, the majority of Australians are still taking a conservative approach to the use of their tax returns in 2013. For respondents that are expecting to receive a tax return, over a third (35.6%) plan to use the money to pay o debt, while 31.5% plan to save their tax return. The results are relatively stable compared to 2012, when 38.9% planned to pay o debt, and 30.8% planned to save their refund. Tendency to use the return to pay off debt decreased steadily with age (46.9% of Gen X vs. 12.9% of Pre Boomers) and is least apparent among respondents from QLD (29.9%) while highest among those from NSW (39.0%). Less than one in ve (16.8%) plan to buy basic commodities such as food or rent, while only 12.0% plan to use it for entertainment or going on holidays, which is down slightly from 2012 when 14.9% planned to spend their return on something more exciting - a likely reection of the continued negative sentiment towards the economy at present. Among those who are planning to save their tax return, bank savings accounts are the most popular method of savings, nominated by 64.0% of respondents, despite the popularity of this savings vehicle decreasing slightly compared to last year (69.2%). However, bank accounts are considerably more popular among females than males (72.2% vs. 58.0%) as they are with Gen Y (80.6%) compared to older generations. Respondents from SA also showed some predilection for using savings accounts over those from other states. Preference for term deposit accounts have remained stable compared to FY 2011/12 (11.5% vs. 10.8%), while shares and other investments have bounced back somewhat (10.2% vs. 6.1%). This likely reflects the growing flow of investor assets from cash to equities as economies slowly recover from the last GFC.

Tax Return Use

Of those planning to pay down debt, the number looking to pay down credit cards has decreased since FY 2011/12 (53.5% vs. 62.7%), while the number looking to pay o mortgages has increased (40.3% vs. 33.5%), suggesting a shift in focus from short term to long term debt reduction a reversal of the trend observed last year. While females are more likely than males to pay down debt on their credit cards (57.5% vs. 50.7%), males are more likely to pay off their mortgage (43.5% vs. 35.6%). The spenders, on the other hand have become slightly less likely to spend their tax return on a holiday (65.0% vs. 68.5%) or electronic goods (29.2% vs. 31.5%), and slightly more likely to spend it on entertainment (22.5% vs. 20.3%) and home improvements (18.3% vs. 15.4%). While males tended to prefer spending on electronic goods (32.4% vs. 25.0%), females had a clear preference over males for clothes/accessories etc. (30.8% vs. 11.8%) and pampering themselves (17.3% vs. 0%). Gen Y are also much more likely to spend on entertainment (33.3%), clothes/accessories etc. (40.0%), and pampering (23.3%) than older generations. How is your income tax return likely to be used?
It will be used to pay off debt 35.6 38.9 42.2 31.5 30.8 31.3 16.8 19.1 15.8 12.0 14.9 17.7 5.2 4.9 5.3 1.1 1.0 1.3 4.6 0.0 0 10 11.9 20 30 40 50

It will be saved

It will be spent on basic commodities It will be spent on something more exciting It will be spent on things needed for work

2013 2012 2011

It will be donated to charity

Other

% Yes

Tax Return Use

If you intend to save it - what type of account/product will you deposit it into?
64.0 69.2 57.0 13.7 13.6 14.1 11.5 10.8 16.8 10.2 6.1 11.7 3.8 2.4 5.1 3.2 3.1 4.7 8.0 3.7 0.0 0 25 % Yes 50 75

Bank savings account

Transaction account

Term deposit account

2013 2012 2011

Shares or other investments

Voluntary contribution to superannuation fund

First home savings account

Other

If you intend to use it to pay off debt - what type of debts will these be?
Credit card debt/s 53.5 50.1 40.3 33.5 47.0 9.0 9.1 10.1 5.1 5.6 2.3 4.2 7.8 4.6 3.1 4.0 2.9 0.6 1.9 1.2 3.7 4.0 0.0 0 25 % Yes 50 75 2013 2012 2011 62.7

Mortgage

Personal loan/s

Car Loan

Pay back money to friend/family

Domestic purchase financing

Student loan

Other

Tax Return Use

If you intend to spend it on something more exciting - what do you think you might spend it on?
Holidays Electronic goods - TV, computers, kitchen appliances etc Entertainment - Eating out, movies, socialising etc Clothes, accessories or jewellery Home improvements Hobbies, boats and sporting pursuits Pamper myself - Beauty therapy, massage etc Car improvements Other 0 29.2 31.5 33.8 22.5 20.3 24.1 20.0 19.6 23.4 18.3 15.4 17.2 11.7 14.0 9.0 7.5 9.8 6.2 5.8 4.1 0.8 4.2 0.0 25 % Yes 50 75 11.9 2013 2012 2011 65.0 68.5

55.9

Deduction Offsets
The top sources of intended deductions this year are gifts/donations and the cost of managing tax affairs although it is interest deductions and non-employer sponsored super contributions that garner the greatest amount of actual dollars claimed by individuals on average The top sources of intended deductions this year are gifts/donations (55.5%) and the cost of managing tax affairs (39.4%), despite both losing some marginal ground from last year. Changing little from last year, the top five is rounded out by other work related expenses such as meal expenses and seminars (36.9%), work related uniforms/clothing (32.2%), work related car expenses (28.5%) and travel expenses (20.8%). Male respondents are considerably more likely than females to claim for work related uniform expenses, car expenses, travel expenses and the cost of managing tax affairs. While respondents from NSW and VIC are more likely to claim work related travel and other work related expenses, those from QLD are most likely to claim for gifts/donations and uniform/clothing expenses. SA respondents are notably the least likely to claim work related self-education expenses.

Deductions Offsets

10

Which (if any) of the following deductions did you claim last year/ intend to claim this year for your tax return?
Gifts or donations Cost of managing tax affairs Other work related expenses (i.e. meal expenses, seminars, etc.) Work related uniform/clothing expenses Work related car expenses Work related travel expenses Work related self-education expenses Interest deductions Dividend deductions Non-employer sponsored super contributions Low value pool deduction Deduction for project pool Election expenses Forestry managed investment scheme deduction Deductible amount UPP of foreign pension/annuity Other deductions None of the above 0 5.2 4.5 2.6 2.7 0.3 0.4 0.3 0.3 0.2 0.4 0.1 0.2 11.7 11.9 13.1 11.7 25 % Yes 50 75 20.8 20.6 19.4 17.0 19.4 17.3 18.4 17.9 Deductions this year Deductions last year 39.4 41.5 36.9 36.4 32.2 33.0 28.5 29.1 55.5 58.5

However, despite the popularity of various sources of deductions observed previously, it is interest deductions ($8,066) and non-employer sponsored super contributions ($7,538) that garner the greatest amount of actual dollars claimed by individuals on average far outweighing other sources. However, the average claim from both of these sources has dropped considerably from last year, particularly for non-employer sponsored super contributions (dropping by $2,465).

Deductions Offsets

11

Please tell us the approximate value you claimed for each deduction last year/intend to claim for this year.
Interest deductions Non-employer sponsored super contributions Dividend deductions Work related car expenses Work related travel expenses Low value pool deduction Work related self-education expenses Other work related expenses (i.e. meal expenses, seminars, etc.) Gifts or donations Cost of managing tax affairs Work related uniform/clothing expenses Other deductions 0 $1,887 $1,702 $1,846 $2,183 $1,686 $804 $1,056 $1,584 $799 $935 $688 $939 $539 $511 $457 $432 $190 $217 $5,690 $5,110 5,000 $ 10,000 15,000 Amount this year Amount last year $8,066 $8,860 $7,538 $10,003

Offsets
The most common types of offsets respondents report include franking credits, low income and medical expenses despite all decreasing marginally from last year The most common types of offsets respondents report include franking credits (30.3%), low income (15.3%) and medical expenses (14.3%) despite all decreasing marginally from last year. Low income tax offsets clearly draw the largest offsets on average ($3,259 rising extremely from last years average of $1,432). Notably, the offsets drawn from Senior Australians tax offsets ($2,850) have increased more than three times since last year ($838). Males tendency for greater exposure to equities is reflected in considerably more claiming for franking credits than females. As might be expected claims for franking credits, medical expenses and the senior Australians tax offset increased considerably in the older generations.

Offsets

12

Which (if any) of the following offsets/rebates did you claim last year/intend to claim for this year?
Franking credits Low income tax offset Medical expenses tax offset Spouse tax offset Senior Australians tax offset Mature age workers tax offset Education Tax Refund Zone or overseas forces tax offset Entrepreneurs' tax offset None of the above 0 10 20 30 % Yes 40 8.0 8.6 6.7 6.8 6.5 6.4 4.4 4.8 2.6 3.2 1.1 1.5 44.0 39.8 50 15.3 17.0 14.3 17.0 30.3 31.1

Offsets this year Offsets last year

Please tell us the approximate value you claimed for each offset last year/intend to claim for this year.
Low income tax offset Senior Australians tax offset Franking credits Medical expenses tax offset Spouse tax offset Zone or overseas forces tax offset Entrepreneurs' tax offset Education Tax Refund Mature age workers tax offset 0 $1,432 $838 $1,779 $1,737 $1,514 $1,503 $1,333 $1,152 $1,226 $1,270 $1,164 $830 $1,026 $642 $436 $362 2,000 $ 4,000 6,000 Amount this year Amount last year $3,259 $2,850

Offsets

13

Managing Taxes
The majority of respondents report that they do not rely on their tax return Online returns dominate Opinion is somewhat divided around whether tax returns have become easier or harder over the years, although more believe it is becoming easier As in past years the majority of respondents report that they do not rely on their tax return (73.5%), however this is increasing slightly overall from past years and while more report not expecting to get much, less are reporting it is even useful to them. Decreasing from last year, fewer report needing the return when it comes in (despite not planning around it) or actually making financial plans around it (14.0% and 8.5% respectively). How much do you usually rely on your tax return each year?
50 42.3 40 30 % 20 10 0 26.5 29.6 38.3 38.7 2011 35.2 2012 2013

17.2 18.0

14.0

11.9 11.3

8.5 2.1 2.4 3.9

Dont usually expect to get much/anything so dont rely on it

Tax return is Dont make plans Usually make financial plans around it but useful but that count on usually ending usually dont the return up needing it rely on it at all when it comes in

Other

Preferred payment methods for tax returns changed little from past years, although the most popular direct debit method is slightly down from last year (now on par with 2011 at 72.5%). It is however apparent that younger generations are much more likely to prefer direct debit (Y and X, 89.8% and 83.6% respectively) while older generations had a greater proportion of respondents opting for cheques (Baby boomers, 20.6% and Pre boomers 22.9%). Which payment method do you prefer to receive your tax return?
100 76.0 2011 72.5 72.5 2012 2013

75

% 50

25

20.7

14.9 15.1 4.5 6.8

9.2

Managing Taxes

2.3

2.3 Other

3.1

Direct debit

Cheque

Dont usually get a tax return payment

14

Filing tax returns online is clearly the most popular approach for respondents (87.6%), in line with the past two years. However, use of this method declined for baby boomers (82.3%) and pre boomers (76.9%) generations. While most popular in SA (94.3%) it is least popular in QLD (82.4%). The most common approach of preparing tax return is to pay an accountant (50.3%, slightly down from 53.9% last year). This is followed by doing it themselves (39.6%, slightly up from 37.1%). Gen Y respondents are more likely to prepare their tax returns themselves than older generations (50.3%) and much less likely to pay an accountant to do it (34.0%) presumably because their income is smaller and financial affairs less complicated. Those respondents from VIC are the most likely to pay an accountant (57.4%) and the least likely to do it themselves (32.3%). Conversely those from SA are the least likely to pay an accountant (43.0%) and the most likely to do it themselves (46.5%). Who usually prepares your tax return? | Do you file your tax return online?
2011 100 2012 2013 86.0 87.9 87.6

75 55.1 53.9 % 50 50.3 38.5 37.1 39.6

25 2.3 4.1 3.5 0 I pay an accountant to do it I do it myself 2.4 2.9 3.1 1.6 2.0 3.5 Other Do you file your tax return online? .

Family or friend Family or friend does it who arequalified accountants

Who usually prepares your tax return?

Opinion is somewhat divided around whether tax returns have become easier or harder over the years with nearly half (45.6%) thinking they are easier, nearly a quarter (23.3%) thinking they are in fact harder and the remaining 31.2% reporting no change. Changing little from past years, most respondents felt that maintaining all the required documents and records is a bit tiresome but not too hard (46.8%) or is not too hard at all (31.8%). Only 6.5% found this very hard and arduous. These tasks appeared to get appreciably easier with age although there is no marked gender differences observed. Do you think that completing tax returns has become easier over the years?
No, much harder 10.3% Yes, much easier 20.8%

No, a bit harder 12.9%

No change 31.2%

Yes, a bit easier 24.8%

Managing Taxes

15

How hard do you find it to maintain all the documents and records you need to fulfill your tax obligations each year?
100 5.7 13.9 75 Hard but doable 44.1 % 50 45.7 46.8 A bit tiresome but not too hard 25 36.2 0 35.2 31.8 Not hard at all 5.4 13.7 6.0 15.3 Very hard and arduous

2011

2012

2013

Predictably, the majority of respondents agreed that they love getting money back from the government (83.6%) and hate having to pay additional tax after making their return (69.0%). At least half think tax jargon is too complicated and confusing (52.9%) and that the system is too complicated (51.3%). Furthermore many are always uncertain about what they are allowed to claim (43.6%), feel it is a hassle having to find all the documents/receipts required (37.7%) or worry about committing legally to the final figures (32.3%). While females are more likely than males to love getting money from the government, they are also more likely to feel the system is complicated, worry about committing to final figures and feel uncertainty as to what they can claim. Respondents from QLD are the most likely to think its a hassle dealing with accountants and that tax jargon is too complicated and confusing. Please tell us how much you agree with the following statements using a 0-10 scale, where 10 is strongly agree and 0 is strongly disagree.
Disagree (0-3) I love getting money back from the government Neutral (4-6) Agree (7-10)

13.1

83.6

I hate having to pay additional tax after 11.0 making my tax return The tax jargon is too complicated and confusing The system is too complicated I am always uncertain about what I am allowed to claim It is a hassle having to find all the documents and receipts for things I want to claim for When I commit to the final figures I worry about committing myself legally to them It is a hassle to have to deal with the accountant 19.2

20.0

69.0

28.0

52.9

20.1

28.7

51.3

27.6

28.8

43.6

36.2

26.1

37.7

39.5

28.2

32.3

49.8 0 25 50 %

27.6 75

22.6 100

Managing Taxes

16

Return Preparation
Many find completing tax returns too difficult The average cost among respondents for paying someone to prepare their tax return is reported at $357, down from last year ($422) but still up from 2011 ($301). Amount paid clearly increased with age and is significantly higher on average for males, presumably in line with the complexity of financial affairs requiring attention. Interestingly WA and QLD respondents paid over $100 more per year on average than those from other states. While over half consider preparing a tax return OK if following instructions (57.9%), at least 22.2% believe it is too difficult to complete. Of those that feel it is too difficult, most cite difficulties in calculating deductions (70.5% similar to last year), followed by unclear explanations (38.9%) and difficulties filling out the form (35.3%), both up from last year. However, most respondents would still prefer to fill in a tax return (63.9% despite decreasing from last year) than receive a standard tax rebate (30.6% despite increasing from last year). While standard tax rebates are most popular among baby boomers (36.1%) filling in a tax return is most popular among Gen Y (72.8%) and Gen X (68.9%). Geographically, NSW respondents are the most likely to prefer to fill in a tax return (70.4%) while those from QLD are the most likely to prefer a standard tax rebate (37.2%). For those that do prepare their own return, nearly half (46.7%) take less than a day to do this while 17.7% take a day and a further 14.0% take at least two days, which is quite consistent with past years. Males tended to take slightly longer to complete their tax returns as did those from older generations (up until retirement age). If someone prepares your tax return, how much does it cost?
500 400 300 $ 200 100 0 $301 $422 $357

2011

2012

2013

Would you consider preparing a tax return to be:

75 52.9 50 % 25 23.8 23.8 20.0 23.2 20.9 22.2 2011 57.9 2012 2013

55.4

Return Preparation

Straightforward

Ok if following instructions

Too difficult to complete

17

What are the reasons why you consider preparing your tax return too difficult to complete?
Items such as deductions are too difficult to calculate Explanations of questions are unclear 38.9 37.5 35.3 37.1 70.5 69.0 75.6

54.8

2011 2012 2013

Filling out the form is too hard

21.5 13.7 20.0 24.9 23.0 15.4 0 25

Record keeping is too hard

Other

50 % Yes

75

100

Would you prefer to receive a standard tax rebate or fill in a tax return?
80 2011 68.0 67.8 63.9 2012 2013

60

% 40

27.8 27.8

30.6

20 4.3 0 I would prefer to fill I would prefer a in a tax return standard tax rebate 4.4 Other 5.5

How long does it take you to prepare your tax return?

60 45.6 46.5 46.7 40 % 20 18.9 18.6 17.7 13.6 13.7 14.0 2011 2012 2013

11.2 9.9 12.1

10.6 11.4 9.4

Return Preparation

Less than 1 day

1 day

2 days

3-5 days

More than 5 days

18

When given a choice between completing a tax return and other arduous activities, completing a tax return did not do as badly as may have been expected with respondents nearly evenly split between completing a return compared and cleaning the entire house, working on the weekend and being stuck in a traffic jam. Furthermore, the majority of respondents would prefer to complete a tax return than do a big business presentation, do a year 12 math exam or run a marathon. Males are more likely than females to prefer running a marathon, working on the weekend, doing a year 12 math exam and preparing a big business presentation while females are more likely to prefer cleaning thewhole house. Gen Y also tended to embrace running a marathon, cleaning the entire house and doing a year 12 math exam than older generations. Please indicate which of the following activities you would do.
Clean the entire house Work on the weekend Be stuck in a traffic jam 50.5% C o m C o m C o m 33.8% C o m C o m 49.5% Complete a tax return Complete a tax return Complete a tax return 66.2% Complete a tax return Complete a tax return Complete a tax return 100

49.6%

50.4%

47.0%

53.0%

Do a big business presentation Do a year 12 math exam

27.5%

72.5%

Run a marathon 100 75 50 25

C 20.2%o m 0 % 25 50

79.8% 75

Return Preparation

19

Small Business
SME owners are increasingly prioritising using returns for personal purposes over investing back in their business Around one in ten respondents are owners of a SME, and this year they tended to increasingly prioritise using returns for personal purposes over investing back in the business. Increasingly, these respondents seek to pay off personal debt with their business return (25.7% up from 16.2% last year). This is followed by investing back in the business (21.0% although this decreased somewhat from last year at 26.9%), paying off business debt (14.3% down from 25.4%), personal savings and personal expenditure (14.3% and 12.3% respectively both up from last year). Interestingly, males are much less likely than females to use their business return to invest back in the business (13.2% vs. 35.1%), and more likely to use it for personal expenditure (16.2% vs. 5.4%) and paying off personal debt (27.9% vs. 21.6%). Gen Y, perhaps unexpectedly given their tendency for short term focus, are actually more likely to invest back in their business (50.0%) than older generations this might be due to the financial setup demands of more fledgling start up SMEs among Gen Y. A considerable proportion of SME respondents make voluntary super payments for themselves as owners (36.2%), prepay business expenses (22.9%) and negatively gear property to minimise tax liabilities. As would be expected those approaching or at retirement (i.e. the Baby Boomer generation) are much more likely to be making voluntary super payments to minimise their liability (49.2%) while Gen Y are the most likely to prepay expenses to reduce taxable income (37.5%). Males are more likely than females to negatively gear investment property (23.5% vs. 16.2%). Are you a small to medium size enterprise owner?
15 12.8 13.6 10.5 10 % Yes 5

2011

2012

2013

Small Business

20

If you are a Small to Medium Sized Enterprise (SME) owner, how do you plan to use your business return?
Paying off personal debt Invest back in the business e.g. capital expenditure, staff development Pay off business debt 14.3 18.1 14.3 12.3 12.4 16.2 15.2 21.0 25.7

26.9

31.4

25.4

Personal savings

2013 21.0 2012 2011

Personal expenditure

7.7 8.6 7.6

Savings earmarked for the business

13.1 13.3 13.1 19.0

Other 0 10

20 % Yes

30

40

Do you do any of the following to minimise your tax liability?

36.2 34.6 40.0 22.9 39.2 41.9 21.0 26.2 21.9 3.8 26.9 0 10 20 % Yes 30 40 2013 2012 2011

Make voluntary superannuation payments for yourself as owner/director Prepay expenses eg seminars, conferences, materials (to reduce your business taxable income) Purchase investment property which you can then negatively gear

Other

50

Small Business

21

Tables 2013
Did you receive a tax refund or pay additional tax last year? Female Received refund Paid additional tax Broke even (no refund, no payment) Other 69.3% 13.2% 10.2% 7.3% Male 71.9% 15.5% 9.5% 3.1% Gen Y 79.6% 14.3% 4.8% 1.4% State NSW Received refund Paid additional tax Broke even (no refund, no payment) Other 72.2% 13.9% 9.0% 4.9% VIC 70.5% 14.7% 9.2% 5.6% QLD 71.3% 14.6% 7.9% 6.1% SA 64.0% 16.7% 15.8% 3.5% WA 67.0% 17.6% 11.9% 3.4% Gen X 75.5% 15.1% 6.9% 2.5% Baby Boomers 66.0% 15.4% 11.5% 7.1% PreBoomers 62.9% 7.1% 22.9% 7.1%

Australia 70.8% 14.5% 9.8% 4.8%

How much income tax refund/payment did you get last year? Female Income tax refund received last year Additional income tax paid last year $1,602 $1,657 Male $2,513 $3,839 Gen Y $1,771 $2,117 Gen X $2,153 $2,295 Baby Boomers $2,328 $3,688 PreBoomers $1,859 $4,783

State NSW Income tax refund received last year Additional income tax paid last year $2,171 $2,594 VIC $1,969 $5,346 QLD $2,172 $2,355 SA $1,616 $1,261 WA $2,977 $2,230

Australia $2,148 $3,012

Do you expect to receive a tax refund or pay additional tax this year? Female Receive refund Pay additional tax Break even (no refund, no payment) Other 62.7% 9.0% 19.5% 8.8% Male 66.3% 10.1% 18.7% 4.9% Gen Y 71.4% 4.1% 21.1% 3.4% State NSW Receive refund 66.4% 9.9% 14.8% 9.0% Pay additional tax Break even (no refund, no payment) Other VIC 66.5% 8.4% 18.7% 6.4% QLD 56.7% 9.1% 27.4% 6.7% SA 66.7% 12.3% 17.5% 3.5% WA 62.5% 12.5% 18.8% 6.3% Gen X 69.2% 8.8% 17.6% 4.4% Baby Boomers 61.5% 12.3% 18.4% 7.8% PreBoomers 52.9% 7.1% 25.7% 14.3%

Australia 64.8% 9.6% 19.1% 6.5%

Tables

22

How much income tax refund/payment do you expect to receive this year? Gender Female Income tax refund to receive this year Additional income tax to pay this year $1,365 $2,419 Male $2,474 $4,140 Gen Y $1,765 $1,633 Generation Gen X $1,947 $2,273 Baby Boomers $2,237 $4,551 PreBoomers $1,721 $2,728

State NSW Income tax refund to receive this year Additional income tax to pay this year $1,955 $3,968 VIC $1,950 $5,528 QLD $2,202 $2,821 SA $1,683 $1,258 WA $2,691 $2,985

Australia $2,033 $3,539

How is your income tax return likely to be used? Gender Female It will be saved It will be used to pay off debt It will be spent on basic commodities e.g. rent, food etc It will be spent on things needed for work e.g. clothes, equipment etc It will be spent on something more exciting e.g. entertainment, new television, holiday etc. It will be donated to charity Other Not applicable 32.4% 35.6% 17.3% 3.9% Male 30.8% 35.6% 16.4% 6.1% Gen Y 42.2% 44.2% 17.7% 10.9% Generation Gen X 26.4% 46.9% 18.9% 4.7% Baby Boomers 31.0% 28.6% 14.7% 4.1% PreBoomers 35.7% 12.9% 18.6% 2.9%

12.7% 0.7% 4.4% 10.0%

11.6% 1.4% 4.8% 10.9%

20.4% 0.7% 3.4% 2.0% State

11.9% 0.6% 4.7% 7.2%

9.7% 1.1% 5.0% 13.9%

10.0% 4.3% 4.3% 21.4%

NSW It will be saved It will be used to pay off debt It will be spent on basic commodities e.g. rent, food etc It will be spent on things needed for work e.g. clothes, equipment etc It will be spent on something more exciting e.g. entertainment, new television, holiday etc. It will be donated to charity Other Not applicable
*Multiple answers allowed

VIC 25.9% 37.8% 17.1% 7.2%

QLD 29.9% 29.9% 26.2% 1.8%

SA 29.8% 37.7% 12.3% 8.8%

WA 34.1% 34.1% 14.8% 4.5%

Australia 31.5% 35.6% 16.8% 5.2%

32.3% 39.0% 15.7% 4.5%

10.8% 0.9% 3.1% 10.3%

13.1% 0.8% 4.0% 10.8%

7.3% 1.2% 3.0% 13.4%

20.2%

13.1% 1.1%

12.0% 1.1% 4.6% 10.5%

7.0% 11.4%

6.8% 9.7%

Tables

23

If you intend to save it - what type of account/product will you deposit it into? Gender Female Bank savings account First home savings account Term deposit account Transaction account Voluntary contribution to superannuation fund Shares or other investments Other 72.2% 3.0% 9.0% 12.8% 3.8% 3.8% 6.0% Male 58.0% 3.3% 13.3% 14.4% 3.9% 14.9% 9.4% Gen Y 80.6% 6.5% 6.5% 16.1% 3.2% 4.8% 11.3% State NSW Bank savings account First home savings account Term deposit account Transaction account Voluntary contribution to superannuation fund Shares or other investments Other
*Multiple answers allowed

Generation Gen X 65.5% 3.6% 6.0% 13.1% 2.4% 13.1% 11.9% Baby Boomers 55.9% 2.1% 16.8% 13.3% 4.2% 10.5% 4.2% PreBoomers 64.0% 0.0% 12.0% 12.0% 8.0% 12.0% 8.0%

VIC 64.6% 1.5% 16.9% 13.8% 4.6% 9.2% 1.5%

QLD 57.1% 11.5% 12.2% 6.1% 4.1% 10.2% 10.2%

SA 76.5% 5.9% 17.6% 11.8% 5.9% 5.9% 2.9%

WA 63.3% 5.0% 5.0% 15.0% 1.7% 15.0% 16.7%

Australia 64.0% 3.2% 11.5% 13.7% 3.8% 10.2% 8.0%

62.5% 2.8% 8.3% 22.2% 5.6% 8.3% 6.9%

If you intend to use it to pay off debt - what type of debts will these be? Gender Female Credit card debt/s Mortgage Car Loan Domestic purchase financing Personal loan/s Student loan Pay back money to friend/family Other 57.5% 35.6% 3.4% 2.7% 7.5% 0.0% 8.2% 4.1% Male 50.7% 43.5% 6.2% 3.3% 10.0% 1.0% 1.4% 3.3% Gen Y 55.4% 35.4% 13.8% 3.1% 12.3% 3.1% 6.2% 6.2% State NSW Credit card debt/s Mortgage Car Loan Domestic purchase financing Personal loan/s Student loan Pay back money to friend/family Other
*Multiple answers allowed

Generation Gen X 59.1% 40.3% 2.7% 4.0% 10.7% 0.0% 3.4% 2.0% Baby Boomers 44.7% 44.7% 3.8% 2.3% 4.5% 0.0% 4.5% 4.5% PreBoomers 77.8% 11.1% 0.0% 0.0% 22.2% 0.0% 0.0% 0.0%

VIC 53.7% 42.1% 4.2% 2.1% 8.4% 1.1% 5.3% 4.2%

QLD 49.0% 38.8% 2.0% 4.1% 16.3% 0.0% 2.0% 4.1%

SA 55.8% 34.9% 2.3% 2.3% 4.7% 0.0% 2.3% 9.3%

WA 55.0% 38.3% 11.7% 6.7% 6.7% 0.0% 1.7% 1.7%

Australia 53.5% 40.3% 5.1% 3.1% 9.0% 0.6% 4.2% 3.7%

50.6% 43.7% 5.7% 2.3% 8.0% 1.1% 5.7% 2.3%

Tables

24

If you intend to spend it on something more exciting - what do you think you might spend it on? Gender Female Electronic goods - TV, computers, kitchen appliances etc Entertainment - Eating out, movies, socialising etc Clothes, accessories or jewellery Pamper myself - Beauty therapy, massage etc Holidays Hobbies, boats and sporting pursuits Home improvements Car improvements Other 25.0% 25.0% 30.8% 17.3% 61.5% 9.6% 23.1% 7.7% 1.9% Male 32.4% 20.6% 11.8% 0.0% 67.6% 13.2% 14.7% 4.4% 0.0% Gen Y 26.7% 33.3% 40.0% 23.3% 60.0% 10.0% 23.3% 10.0% 0.0% State NSW Electronic goods - TV, computers, kitchen appliances etc 25.0% VIC 24.2% QLD 41.7% SA 39.1% WA 30.4% Generation Gen X 39.5% 23.7% 13.2% 2.6% 60.5% 10.5% 15.8% 2.6% 0.0% Baby Boomers 22.2% 13.3% 13.3% 2.2% 73.3% 13.3% 17.8% 6.7% 2.2% PreBoomers 28.6% 28.6% 14.3% 0.0% 57.1% 14.3% 14.3% 0.0% 0.0%

Australia 29.2%

Tables

25

Which (if any) of the following deductions did you claim last year for your tax return? Gender Female Work related car expenses Work related travel expenses Work related uniform/clothing expenses Work related self-education expenses Other work related expenses (i.e. overtime meal expenses, professional seminars, reference books/journals/trade magazines, protective gear) Deduction for project pool Low value pool deduction Interest deductions Dividend deductions Gifts or donations Cost of managing tax affairs Australian film industry incentives Deductible amount UPP of foreign pension/annuity Non-employer sponsored super contributions Election expenses Forestry managed investment scheme deduction Other deductions None of the above 22.9% 16.1% 28.3% 18.0% Male 33.4% 23.7% 36.3% 16.2% Gen Y 34.0% 20.4% 40.1% 23.1% Generation Gen X 33.0% 22.0% 35.8% 22.3% Baby Boomers 26.8% 20.6% 31.2% 12.8% PreBoomers 15.7% 14.3% 17.1% 7.1%

32.4%

39.2%

37.4%

39.3%

35.5%

27.1%

0.2% 1.0% 11.7% 13.9% 61.2% 37.8% 0.0% 0.2% 3.7% 0.0% 0.0% 10.2% 13.7%

0.5% 3.9% 21.1% 20.6% 56.6% 44.1% 0.0% 0.2% 5.1% 0.5% 0.7% 13.1% 10.4%

0.7% 4.1% 10.9% 6.8% 54.4% 23.8% 0.0% 0.0% 0.0% 0.7% 0.0% 10.9% 5.4%

0.3% 3.8% 15.1% 13.2% 59.7% 43.7% 0.0% 0.0% 2.5% 0.3% 0.6% 8.8% 8.8%

0.4% 1.7% 21.4% 21.9% 59.1% 45.7% 0.0% 0.0% 7.1% 0.0% 0.4% 15.2% 13.6%

0.0% 1.4% 12.9% 35.7% 57.1% 41.4% 0.0% 2.9% 5.7% 1.4% 0.0% 7.1% 25.7%

Tables

26

Which (if any) of the following deductions did you claim last year for your tax return? State NSW Work related car expenses Work related travel expenses Work related uniform/clothing expenses Work related self-education expenses Other work related expenses (i.e. overtime meal expenses, professional seminars, reference books/journals/trade magazines, protective gear) Deduction for project pool Low value pool deduction Interest deductions Dividend deductions Gifts or donations Cost of managing tax affairs Australian film industry incentives Deductible amount UPP of foreign pension/annuity Non-employer sponsored super contributions Election expenses Forestry managed investment scheme deduction Other deductions None of the above
*Multiple answers allowed

VIC 30.7% 25.9% 27.9% 17.9%

QLD 26.2% 15.2% 42.1% 14.6%

SA 25.4% 15.8% 31.6% 10.5%

WA 29.5% 15.9% 29.5% 20.5%

Australia 29.1% 20.6% 33.0% 17.0%

28.7% 25.1% 35.0% 20.2%

43.0%

37.1%

32.3%

35.1%

31.8%

36.4%

1.3% 2.7% 19.3% 18.4% 56.1% 43.0% 0.0% 0.0% 4.0% 0.9% 1.3% 11.7% 10.8%

0.4% 3.6% 17.9% 17.9% 57.0% 42.6% 0.0% 0.4% 6.4% 0.4% 0.0% 13.9% 13.9%

0.0% 3.7% 17.1% 19.5% 64.6% 45.1% 0.0% 0.6% 3.7% 0.0% 0.0% 10.4% 11.6%

0.0% 0.9% 9.6% 12.3% 50.9% 33.3% 0.0% 0.0% 4.4% 0.0% 0.9% 14.0% 14.0%

0.0% 1.7% 21.0% 21.0% 58.5% 42.6% 0.0% 0.0% 4.0% 0.0% 0.0% 9.1% 11.4%

0.4% 2.7% 17.3% 17.9% 58.5% 41.5% 0.0% 0.2% 4.5% 0.0% 0.4% 11.9% 11.7%

Tables

27

Which (if any) of the following deductions do you intend to claim in your tax return this year? Gender Female Work related car expenses Work related travel expenses Work related uniform/clothing expenses Work related self-education expenses Other work related expenses (i.e. overtime meal expenses, professional seminars, reference books/journals/trade magazines, protective gear) Deduction for project pool Low value pool deduction Interest deductions Dividend deductions Gifts or donations Cost of managing tax affairs Australian film industry incentives Deductible amount UPP of foreign pension/annuity Non-employer sponsored super contributions Election expenses Forestry managed investment scheme deduction Other deductions None of the above 22.2% 17.1% 28.5% 20.0% Male 32.9% 23.3% 34.8% 18.9% Gen Y 31.3% 20.4% 37.4% 27.2% Generation Gen X 33.3% 24.8% 35.8% 24.2% Baby Boomers 26.2% 19.3% 30.7% 15.8% PreBoomers 15.7% 12.9% 14.3% 4.3%

31.2%

40.9%

38.8%

40.6%

36.6%

18.6%

0.2% 0.7% 13.4% 15.6% 56.1% 38.3% 0.0% 0.0% 4.9% 0.0% 0.0% 10.7% 15.9%

0.3% 3.9% 23.5% 20.3% 55.0% 40.2% 0.0% 0.2% 5.5% 0.5% 0.3% 12.4% 11.2%

0.7% 3.4% 16.3% 8.8% 47.6% 23.8% 0.0% 0.0% 1.4% 0.0% 0.0% 8.8% 10.2%

0.0% 3.8% 16.4% 12.9% 55.3% 38.7% 0.0% 0.0% 3.1% 0.3% 0.3% 8.2% 10.1%

0.4% 1.7% 22.7% 22.9% 58.7% 45.5% 0.0% 0.0% 8.0% 0.2% 0.2% 15.8% 13.6%

0.0% 1.4% 17.1% 32.9% 51.4% 35.7% 0.0% 1.4% 4.3% 1.4% 0.0% 7.1% 30.0%

Tables

28

Which (if any) of the following deductions do you intend to claim in your tax return this year? State NSW Work related car expenses Work related travel expenses Work related uniform/clothing expenses Work related self-education expenses Other work related expenses (i.e. overtime meal expenses, professional seminars, reference books/journals/trade magazines, protective gear) Deduction for project pool Low value pool deduction Interest deductions Dividend deductions Gifts or donations Cost of managing tax affairs Australian film industry incentives Deductible amount UPP of foreign pension/annuity Non-employer sponsored super contributions Election expenses Forestry managed investment scheme deduction Other deductions None of the above
*Multiple answers allowed

VIC 31.1% 23.1% 27.5% 20.3%

QLD 25.6% 14.6% 38.4% 15.9%

SA 28.9% 18.4% 30.7% 17.5%

WA 25.0% 18.2% 27.3% 21.0%

Australia 28.5% 20.8% 32.2% 19.4%

28.7% 26.5% 36.8% 22.9%

44.8%

35.5%

32.9%

33.3%

33.5%

36.9%

0.9% 2.7% 21.5% 17.0% 55.2% 42.6% 0.0% 0.0% 4.5% 0.4% 0.4% 12.6% 11.7%

0.0% 2.4% 19.5% 22.3% 51.4% 37.5% 0.0% 0.0% 6.0% 0.4% 0.0% 12.0% 13.9%

0.0% 3.0% 17.7% 18.3% 62.2% 43.3% 0.0% 0.6% 5.5% 0.0% 0.0% 11.6% 14.0%

0.0% 0.9% 14.0% 14.0% 48.2% 34.2% 0.0% 0.0% 6.1% 0.0% 0.9% 11.4% 15.8%

0.0% 2.8% 21.6% 20.5% 56.3% 39.8% 0.0% 0.0% 5.1% 0.6% 0.0% 9.7% 14.8%

0.3% 2.6% 19.4% 18.4% 55.5% 39.4% 0.0% 0.1% 5.2% 0.3% 0.2% 11.7% 13.1%

Tables

29

Which (if any) of the following offsets/rebates did you claim last year? Gender Female Franking credits Spouse tax offset Zone or overseas forces tax offset Medical expenses tax offset Senior Australians tax offset Low income tax offset Mature age workers tax offset Entrepreneurs tax offset Education Tax Refund None of the above 23.7% 3.9% 1.7% 17.1% 5.9% 20.7% 5.6% 1.7% 5.4% 43.2% Male 36.3% 11.9% 4.3% 16.9% 7.5% 14.3% 7.0% 1.4% 4.4% 37.5% Gen Y 9.5% 4.1% 2.7% 8.2% 0.0% 17.7% 0.0% 2.0% 0.0% 61.9% State NSW Franking credits Spouse tax offset Zone or overseas forces tax offset Medical expenses tax offset Senior Australians tax offset Low income tax offset Mature age workers tax offset Entrepreneurs tax offset Education Tax Refund None of the above
*Multiple answers allowed

Generation Gen X 26.1% 8.2% 3.8% 13.8% 0.0% 13.5% 0.0% 1.9% 10.4% 42.5% Baby Boomers 38.5% 8.7% 2.8% 21.0% 8.2% 18.6% 11.3% 1.1% 2.8% 33.3% PreBoomers 50.0% 20.0% 4.3% 22.9% 42.9% 20.0% 17.1% 1.4% 2.9% 24.3%

VIC 31.1% 7.2% 0.4% 17.9% 6.0% 21.9% 7.6% 1.2% 4.8% 38.2%

QLD 36.6% 11.0% 7.3% 17.1% 10.4% 20.1% 7.9% 1.8% 4.3% 35.4%

SA 24.6% 12.3% 2.6% 16.7% 5.3% 21.9% 3.5% 0.9% 4.4% 41.2%

WA 31.3% 8.0% 5.7% 15.3% 10.2% 13.6% 8.5% 2.3% 5.1% 39.8%

Australia 31.1% 8.6% 3.2% 17.0% 6.8% 17.0% 6.4% 1.5% 4.8% 39.8%

31.8% 7.2% 0.4% 18.4% 4.9% 10.3% 3.6% 1.8% 4.9% 43.9%

Tables

30

Which (if any) of the following offsets/rebates do you intend to claim this year? Gender Female Franking credits Spouse tax offset Zone or overseas forces tax offset Medical expenses tax offset Senior Australians tax offset Low income tax offset Mature age workers tax offset Entrepreneurs tax offset Education Tax Refund None of the above 23.7% 3.9% 1.7% 14.9% 5.1% 18.3% 6.3% 1.2% 5.1% 48.0% Male 34.9% 10.9% 3.2% 14.0% 7.8% 13.3% 6.6% 1.0% 3.9% 41.2% Gen Y 10.2% 5.4% 2.0% 8.2% 0.7% 11.6% 0.0% 1.4% 1.4% 66.0% State NSW Franking credits Spouse tax offset Zone or overseas forces tax offset Medical expenses tax offset Senior Australians tax offset Low income tax offset Mature age workers tax offset Entrepreneurs tax offset Education Tax Refund None of the above
*Multiple answers allowed

Generation Gen X 25.2% 7.9% 2.5% 10.7% 0.0% 12.9% 0.0% 0.6% 8.2% 46.9% Baby Boomers 37.7% 7.4% 2.8% 18.4% 8.0% 17.3% 11.7% 1.3% 3.2% 37.9% PreBoomers 47.1% 18.6% 2.9% 17.1% 41.4% 21.4% 15.7% 1.4% 1.4% 25.7%

VIC 29.9% 7.2% 0.0% 15.9% 7.2% 18.3% 7.2% 0.8% 4.4% 43.4%

QLD 34.8% 9.8% 6.1% 13.4% 10.4% 14.6% 7.3% 1.2% 2.4% 40.2%

SA 26.3% 8.8% 0.0% 13.2% 4.4% 20.2% 3.5% 0.9% 4.4% 48.2%

WA 30.1% 9.1% 5.7% 14.2% 9.7% 17.0% 9.7% 1.7% 4.0% 41.5%

Australia 30.3% 8.0% 2.6% 14.3% 6.7% 15.3% 6.5% 1.1% 4.4% 44.0%

31.4% 5.8% 0.4% 14.8% 3.6% 9.4% 4.0% 1.3% 5.4% 48.0%

Tables

31

How much do you usually rely on your tax return each year? Gender Female Dont usually expect to get much/ anything so dont rely on it Tax return is useful but usually dont rely on it at all Dont make plans around it but usually ending up needing it Usually make financial plans that count on the return Other 36.8% 31.5% 17.3% 10.2% 4.1% Male 39.4% 37.8% 11.8% 7.3% 3.7% Gen Y 35.4% 38.1% 17.0% 8.8% 0.7% State NSW Dont usually expect to get much/ anything so dont rely on it Tax return is useful but usually dont rely on it at all Dont make plans around it but usually ending up needing it Usually make financial plans that count on the return Other 34.1% 37.7% 15.7% 9.4% 3.1% VIC 38.6% 35.1% 12.4% 8.0% 6.0% QLD 43.3% 28.0% 17.1% 7.9% 3.7% SA 38.6% 38.6% 12.3% 7.9% 2.6% WA 40.3% 33.0% 11.9% 10.8% 4.0% Generation Gen X 35.2% 36.2% 17.0% 10.1% 1.6% Baby Boomers 41.1% 34.6% 11.9% 7.6% 4.8% PreBoomers 40.0% 28.6% 8.6% 7.1% 15.7%

Australia 38.3% 35.2% 14.0% 8.5% 3.9%

Which payment method do you prefer to receive your tax return? Gender Female Cheque Direct debit Dont usually get a tax return payment Other 12.4% 74.9% 9.8% 2.9% Male 17.0% 70.9% 8.9% 3.2% Gen Y 7.5% 89.8% 2.7% 0.0% State NSW Cheque Direct debit Dont usually get a tax return payment Other 16.6% 71.3% 9.0% 3.1% VIC 17.5% 71.3% 7.6% 3.6% QLD 11.0% 75.6% 9.8% 3.7% SA 15.8% 65.8% 14.0% 4.4% WA 14.2% 73.3% 10.8% 1.7% Generation Gen X 9.1% 83.6% 6.0% 1.3% Baby Boomers 20.6% 62.8% 12.6% 4.1% PreBoomers 22.9% 50.0% 15.7% 11.4%

Australia 15.1% 72.5% 9.2% 3.1%

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Who usually prepares your tax return? Gender Female I do it myself Family or friend does it Family or friend does it (but they are qualified accountants I pay an accountant to do it Other 38.0% 4.9% 1.7% 50.2% 5.1% Male 40.7% 2.6% 4.1% 50.3% 2.4% Gen Y 50.3% 10.2% 4.8% 34.0% 0.7% State NSW I do it myself Family or friend does it Family or friend does it (but they are qualified accountants I pay an accountant to do it Other 39.9% 4.9% 2.2% 48.0% 4.9% VIC 32.3% 2.8% 3.6% 57.4% 4.0% QLD 41.5% 4.9% 1.8% 49.4% 2.4% SA 46.5% 2.6% 4.4% 43.0% 3.5% WA 36.9% 2.3% 4.0% 54.0% 2.8% Generation Gen X 43.1% 2.8% 4.4% 48.1% 1.6% Baby Boomers 34.2% 2.4% 1.9% 57.6% 3.9% PreBoomers 37.1% 0.0% 1.4% 45.7% 15.7%

Australia 39.6% 3.5% 3.1% 50.3% 3.5%

Do you file your tax return online? Gender Female Yes No 88.5% 11.5% Male 87.0% 13.0% Gen Y 91.9% 8.1% State NSW Yes No 86.5% 13.5% VIC 90.1% 9.9% QLD 82.4% 17.6% SA 94.3% 5.7% WA 84.6% 15.4% Generation Gen X 93.4% 6.6% Baby Boomers 82.3% 17.7% PreBoomers 76.9% 23.1%

Australia 87.6% 12.4%

Do you think that completing tax returns has become easier over the years? Gender Female Yes, much easier Yes, a bit easier No, change No, a bit harder No, much harder 22.2% 22.7% 32.7% 11.2% 11.2% Male 19.8% 26.2% 30.2% 14.1% 9.7% Gen Y 19.7% 34.0% 37.4% 6.1% 2.7% State NSW Yes, much easier Yes, a bit easier No, change No, a bit harder No, much harder 20.2% 28.3% 30.9% 13.0% 7.6% VIC 20.7% 24.3% 32.3% 11.2% 11.6% QLD 20.1% 22.6% 28.0% 15.2% 14.0% SA 21.1% 28.1% 28.9% 11.4% 10.5% WA 19.3% 21.6% 34.7% 13.1% 11.4% Generation Gen X 23.6% 25.8% 34.0% 11.0% 5.7% Baby Boomers 18.6% 21.9% 27.5% 16.9% 15.2% PreBoomers 24.3% 20.0% 30.0% 10.0% 15.7%

Australia 20.8% 24.8% 31.2% 12.9% 10.3%

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How hard do you find it to maintain all the documents and records you need to fulfill your tax obligations each year? Gender Female Not hard at all A bit tiresome but not too hard Hard but doable Very hard and arduous 33.2% 44.6% 15.4% 6.8% Male 30.8% 48.4% 15.3% 5.5% Gen Y 22.4% 58.5% 13.6% 5.4% State NSW Not hard at all A bit tiresome but not too hard Hard but doable Very hard and arduous 32.3% 43.9% 16.6% 7.2% VIC 33.1% 45.4% 13.1% 8.4% QLD 31.1% 46.3% 18.9% 3.7% SA 27.2% 50.9% 16.7% 5.3% WA 30.7% 48.3% 15.9% 5.1% Generation Gen X 28.9% 47.8% 17.6% 5.7% Baby Boomers 35.1% 43.3% 15.2% 6.5% PreBoomers 42.9% 41.4% 10.0% 5.7%

Australia 31.8% 46.8% 15.3% 6.0%

Please tell us how much you agree with the following statements using a 0-10 scale, where 10 is strongly agree and 0 is strongly disagree. Gender Female It is a hassle having to find all the documents and receipts for things I want to claim for It is a hassle to have to deal with the accountant I hate having to pay additional tax after making my tax return The tax jargon is too complicated and confusing I am always uncertain about what I am allowed to claim When I commit to the final figures I worry about committing myself legally to them The system is too complicated I love getting money back from the government 38.5% 23.4% 70.5% 51.7% 47.6% 35.6% 48.8% 87.6% Male 37.1% 22.0% 68.0% 53.7% 40.9% 30.0% 53.0% 80.7% Gen Y 49.0% 20.4% 69.4% 57.8% 55.8% 43.5% 45.6% 87.1% Generation Gen X 41.8% 25.8% 69.8% 53.1% 44.0% 38.1% 51.6% 84.0% Baby Boomers 31.8% 22.1% 70.8% 51.9% 41.3% 27.5% 55.2% 84.4% PreBoomers 34.3% 15.7% 52.9% 47.1% 31.4% 14.3% 35.7% 68.6%

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Please tell us how much you agree with the following statements using a 0-10 scale, where 10 is strongly agree and 0 is strongly disagree. State NSW It is a hassle having to find all the documents and receipts for things I want to claim for It is a hassle to have to deal with the accountant I hate having to pay additional tax after making my tax return The tax jargon is too complicated and confusing I am always uncertain about what I am allowed to claim When I commit to the final figures I worry about committing myself legally to them The system is too complicated I love getting money back from the government
*% Agree (7-10)

VIC 39.4% 23.5% 66.5% 53.0% 45.4% 33.1% 53.0% 83.7%

QLD 38.4% 27.4% 72.6% 59.8% 45.7% 29.3% 54.9% 83.5%

SA 37.7% 19.3% 67.5% 53.5% 43.9% 32.5% 49.1% 90.4%

WA 30.1% 21.6% 72.2% 50.0% 42.0% 32.4% 53.4% 85.8%

Australia 37.7% 22.6% 69.0% 52.9% 43.6% 32.3% 51.3% 83.6%

41.7% 22.9% 70.9% 48.9% 43.5% 35.0% 49.8% 81.2%

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Are you a small to medium size enterprise owner? Gender Female Yes No 9.0% 91.0% Male 11.6% 88.4% Gen Y 5.4% 94.6% State NSW Yes No 9.9% 90.1% VIC 10.0% 90.0% QLD 9.8% 90.2% SA 9.6% 90.4% WA 15.3% 84.7% Generation Gen X 8.2% 91.8% Baby Boomers 13.2% 86.8% PreBoomers 14.3% 85.7%

Australia 10.5% 89.5%

If you are a Small to Medium Sized Enterprise (SME) owner, how do you plan to use your business return? Gender Female Invest back in the business e.g. capital expenditure, staff development Pay off business debt Savings earmarked for the business Personal expenditure Personal savings Paying off personal debt Other 35.1% 13.5% 2.7% 5.4% 16.2% 21.6% 16.2% Male 13.2% 14.7% 10.3% 16.2% 13.2% 27.9% 20.6% Gen Y 50.0% 25.0% 25.0% 0.0% 12.5% 25.0% 0.0% State NSW Invest back in the business e.g. capital expenditure, staff development Pay off business debt Savings earmarked for the business Personal expenditure Personal savings Paying off personal debt Other
*Multiple answers allowed

Generation Gen X 19.2% 15.4% 3.8% 11.5% 11.5% 42.3% 11.5% Baby Boomers 18.0% 13.1% 6.6% 14.8% 14.8% 21.3% 23.0% PreBoomers 20.0% 10.0% 10.0% 10.0% 20.0% 10.0% 30.0%

VIC 20.0% 12.0% 4.0% 12.0% 20.0% 32.0% 20.0%

QLD 31.3% 0.0% 6.3% 18.8% 18.8% 31.3% 12.5%

SA 9.1% 45.5% 0.0% 18.2% 9.1% 18.2% 9.1%

WA 25.9% 14.8% 3.7% 14.8% 11.1% 14.8% 29.6%

Australia 21.0% 14.3% 7.6% 12.4% 14.3% 25.7% 19.0%

13.6% 13.6% 18.2% 4.5% 13.6% 31.8% 13.6%

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Do you do any of the following to minimise your tax liability? Gender Female Make voluntary superannuation payments for yourself as owner/ director Purchase investment property which you can then negatively gear Prepay expenses eg seminars, conferences, materials (to reduce your business taxable income) Other 37.8% Male 35.3% Gen Y 0.0% Generation Gen X 19.2% Baby Boomers 49.2% PreBoomers 30.0%

16.2%

23.5%

12.5%

19.2%

21.3%

30.0%

24.3% 5.6%

22.1% 2.9%

37.5% 0.0% State

26.9% 0.0%

19.7% 3.3%

20.0% 20.0%

NSW Make voluntary superannuation payments for yourself as owner/ director Purchase investment property which you can then negatively gear Prepay expenses eg seminars, conferences, materials (to reduce your business taxable income) Other
*Multiple answers allowed

VIC 36.0%

QLD 56.3%

SA 27.3%

WA 29.6%

Australia 36.2%

31.8%

40.9%

20.0%

18.8%

18.2%

11.1%

21.0%

31.8% 4.5%

16.0% 4.2%

18.8% 0.0%

0.0% 0.0%

33.3% 7.4%

22.9% 3.8%

If someone prepares your tax return, how much does it cost? Gender Female $100 or less $101 to $150 $151 to $200 $201 to $300 $301 to $500 $501 to $1,000 More than $1,000 Average 18.4% 31.1% 17.2% 15.4% 8.2% 6.0% 3.7% $293 Male 18.0% 21.5% 11.9% 13.3% 16.2% 11.9% 7.2% $403 Gen Y 21.3% 36.0% 16.0% 16.0% 9.3% 1.3% 0.0% $185 State NSW $100 or less $101 to $150 $151 to $200 $201 to $300 $301 to $500 $501 to $1,000 More than $1,000 Average
*Banded free numeric answers

Generation Gen X 22.6% 29.8% 13.5% 12.5% 11.5% 6.7% 3.4% $278 Baby Boomers 14.6% 21.7% 14.6% 13.9% 15.5% 12.1% 7.7% $435 PreBoomers 18.4% 13.2% 10.5% 21.1% 5.3% 18.4% 13.2% $475

VIC 22.4% 32.2% 13.2% 10.3% 8.0% 8.6% 5.2% $313

QLD 19.0% 21.9% 12.4% 14.3% 9.5% 12.4% 10.5% $434

SA 13.2% 20.6% 19.1% 16.2% 17.6% 10.3% 2.9% $311

WA 11.0% 19.5% 15.3% 15.3% 18.6% 11.0% 9.3% $473

Australia 18.2% 25.5% 14.1% 14.1% 12.9% 9.5% 5.7% $357

20.0% 26.9% 13.8% 13.8% 14.5% 8.3% 2.8% $313

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Would you consider preparing a tax return to be: Gender Female Straightforward Ok if following instructions Too difficult to complete 19.8% 57.3% 22.9% Male 20.1% 58.3% 21.6% Gen Y 19.0% 68.7% 12.2% State NSW Straightforward Ok if following instructions Too difficult to complete 20.2% 57.0% 22.9% VIC 19.9% 58.6% 21.5% QLD 17.7% 54.3% 28.0% SA 19.3% 62.3% 18.4% WA 18.8% 58.0% 23.3% Generation Gen X 22.6% 60.4% 17.0% Baby Boomers 18.8% 53.0% 28.1% PreBoomers 17.1% 55.7% 27.1%

Australia 20.0% 57.9% 22.2%

What are the reasons why you consider preparing your tax return too difficult to complete? Gender Female Filling out the form is too hard Explanations of questions are unclear Items such as deductions are too difficult to calculate Record keeping is too hard Other 38.3% 50.0% 73.4% 24.5% 11.7% Male 36.2% 58.3% 77.2% 25.2% 18.1% Gen Y 33.3% 66.7% 72.2% 33.3% 11.1% State NSW Filling out the form is too hard Explanations of questions are unclear Items such as deductions are too difficult to calculate Record keeping is too hard Other
*Multiple answers allowed

Generation Gen X 44.4% 63.0% 81.5% 24.1% 11.1% Baby Boomers 35.4% 49.2% 75.4% 24.6% 16.9% PreBoomers 31.6% 57.9% 63.2% 21.1% 21.1%

VIC 38.9% 59.3% 72.2% 20.4% 18.5%

QLD 41.3% 54.3% 69.6% 21.7% 13.0%

SA 42.9% 52.4% 76.2% 42.9% 14.3%

WA 29.3% 53.7% 78.0% 22.0% 14.6%

Australia 37.1% 54.8% 75.6% 24.9% 15.4%

35.3% 51.0% 82.4% 27.5% 17.6%

Would you prefer to receive a standard tax rebate or fill in a tax return? Gender Female I would prefer a standard tax rebate I would prefer to fill in a tax return Other 29.8% 63.4% 6.8% Male 31.2% 64.2% 4.6% Gen Y 23.8% 72.8% 3.4% State NSW I would prefer a standard tax rebate 26.9% 70.4% 2.7% VIC 29.5% 63.3% 7.2% QLD 37.2% 57.9% 4.9% SA 31.6% 63.2% 5.3% WA 30.1% 63.1% 6.8% Generation Gen X 26.7% 68.9% 4.4% Baby Boomers 36.1% 58.7% 5.2% PreBoomers 25.7% 57.1% 17.1%

Australia 30.6% 63.9% 5.5%

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How long does it take you to prepare your tax return? Gender Female Less than 1 day 1 day 2 days 3 days 4 days 5 days More than 5 days 51.0% 15.9% 13.7% 6.1% 1.5% 2.0% 10.0% Male 43.8% 18.9% 14.3% 8.0% 2.2% 3.7% 9.0% Gen Y 50.3% 15.6% 16.3% 9.5% 2.0% 0.7% 5.4% State NSW Less than 1 day 1 day 2 days 3 days 4 days 5 days More than 5 days 43.9% 21.5% 13.5% 7.6% 1.8% 2.7% 9.0% VIC 45.4% 16.3% 13.9% 6.8% 1.2% 4.8% 11.6% QLD 48.2% 16.5% 15.2% 7.3% 1.8% 2.4% 8.5% SA 48.2% 15.8% 14.9% 7.0% 1.8% 0.9% 11.4% WA 47.7% 16.5% 12.5% 8.0% 2.8% 4.0% 8.5% Generation Gen X 44.0% 23.0% 13.8% 6.3% 1.3% 2.5% 9.1% Baby Boomers 47.2% 13.6% 14.1% 7.4% 2.6% 3.9% 11.3% PreBoomers 48.6% 24.3% 10.0% 5.7% 0.0% 4.3% 7.1%

Australia 46.7% 17.7% 14.0% 7.2% 1.9% 3.0% 9.4%

Would you rather do the following activities than complete a tax return? Gender Female Run a marathon Complete a tax return 16.8% 83.2% Male 22.5% 77.5% Gen Y 28.6% 71.4% State NSW Run a marathon Complete a tax return 21.5% 78.5% VIC 19.5% 80.5% QLD 21.3% 78.7% SA 17.5% 82.5% WA 21.0% 79.0% Generation Gen X 19.2% 80.8% Baby Boomers 19.3% 80.7% PreBoomers 12.9% 87.1%

Australia 20.2% 79.8%

Please indicate which of the following activities you would do. Gender Female Clean the entire house Complete a tax return 54.9% 45.1% Male 47.4% 52.6% Gen Y 56.5% 43.5% State NSW Clean the entire house Complete a tax return 52.9% 47.1% VIC 50.2% 49.8% QLD 51.2% 48.8% SA 50.9% 49.1% WA 51.7% 48.3% Generation Gen X 54.4% 45.6% Baby Boomers 47.6% 52.4% PreBoomers 38.6% 61.4%

Australia 50.5% 49.5%

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Please indicate which of the following activities you would do. Gender Female Work on the weekend Complete a tax return 46.1% 53.9% Male 52.1% 47.9% Gen Y 46.3% 53.7% State NSW Work on the weekend Complete a tax return 52.5% 47.5% VIC 51.8% 48.2% QLD 51.8% 48.2% SA 48.2% 51.8% WA 47.2% 52.8% Generation Gen X 44.7% 55.3% Baby Boomers 53.9% 46.1% PreBoomers 51.4% 48.6%

Australia 49.6% 50.4%

Please indicate which of the following activities you would do. Gender Female Do a year 12 math exam Complete a tax return 22.2% 77.8% Male 31.2% 68.8% Gen Y 38.1% 61.9% State NSW Do a year 12 math exam Complete a tax return 30.5% 69.5% VIC 24.7% 75.3% QLD 27.4% 72.6% SA 27.2% 72.8% WA 30.1% 69.9% Generation Gen X 30.2% 69.8% Baby Boomers 23.4% 76.6% PreBoomers 20.0% 80.0%

Australia 27.5% 72.5%

Please indicate which of the following activities you would do. Gender Female Do a big business presentation Complete a tax return 25.4% 74.6% Male 39.7% 60.3% Gen Y 32.7% 67.3% State NSW Do a big business presentation Complete a tax return 30.9% 69.1% VIC 35.5% 64.5% QLD 34.1% 65.9% SA 33.3% 66.7% WA 34.7% 65.3% Generation Gen X 35.8% 64.2% Baby Boomers 33.1% 66.9% PreBoomers 31.4% 68.6%

Australia 33.8% 66.2%

Please indicate which of the following activities you would do. Gender Female Be stuck in a traffic jam Complete a tax return 49.0% 51.0% Male 45.7% 54.3% Gen Y 43.5% 56.5% State NSW Be stuck in a traffic jam Complete a tax return 50.2% 49.8% VIC 51.0% 49.0% QLD 39.6% 60.4% SA 49.1% 50.9% WA 44.9% 55.1% Generation Gen X 49.1% 50.9% Baby Boomers 48.3% 51.7% PreBoomers 37.1% 62.9%

Australia 47.0% 53.0%

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