How you could be $1000 better off every year under new plans to change Australia’s tax return system
Taxpayers could save time and hundreds of dollars a year under a new a proposal to change Australia’s tax return system.
Blueprint Institute believes that annual returns are too much trouble and that Australia should follow countries like the US, Japan and France by introducing a standard deduction.
The Australian think tank is proposing a $3,000 standard tax deduction for work-related expenses.
Under the plans, the Australian Tax Office would apply a $3,000 tax deduction – without a taxpayer needing to do anything on their pre-filled return.
If a worker believes their expenses were greater than that amount, they could fill out a full return to claim the deductions.
Blueprint’s modelling found that the proposed changes would save 80 per cent of Australians up to $1,000 at tax time.
The estimated benefit is $400 to $600 for the average taxpayer.
More to come