1/3 of healthcare workers delay tax return despite looming deadline

Data has revealed that over a third (38%) of health and wellness professionals are yet to file their tax return despite the looming October 31 deadline.

Tax and accounting service Hnry have revealed in their quarterly Sole Trader Pulse report that many Australian healthcare workers put off personal financial administration due to cost, time constraints or a lack of financial literacy.

With the Covid-19 era of leniency well and truly passed, the Australian Taxation Office (ATO) has warned that they will be cracking down on work-related expenses, claims for rental properties and failures to disclose all income.

ATO assistant commissioner Rob Thomson said "these are the areas that people are most likely to get wrong, and while these mistakes are often genuine, sometimes they are deliberate. Take the time to get your return right."

As of last week, the ATO reported a further 1.5 million taxpayers were yet to lodge a return, despite the threat of a hefty failure to lodge fine.

"The ATO is receiving a spike of lodgments, with an average of almost 60 thousand individuals lodging each day in October as the deadline approaches. In fact, we’ve had over 1 million lodgments so far this month alone," Mr Thomson said.

Hrny's survey of over 500 sole-traders across Australia and New Zealand shows that the average healthcare worker spends almost $1,000 and 18 hours preparing their tax return.

Karan Anand, managing director of Hnry Australia, said that keeping accurate records throughout the year, getting an early start on tax returns and seeking assistance from an accountant or a second opinion from a friend can all help to ease tax time stress.

"Health and wellness professionals are essential to Australia's well-being and economic stability, ensuring public health, boosting productivity, and providing crucial care in times of crisis. They’re a thriving, resilient bunch but with the average tax return submission taking 16 hours to complete, it’s no wonder many delay filing," he said.

“Tax season can be a confusing, stressful time - from tracking down receipts to working out expenses to claim - but with the deadline looming it's important to stay on top of things. If you’re filing on your own, make sure to lodge by 31 October, and if you’re using a tax agent, you need to be on their books by this date or risk a $313 fine."

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Around a quarter of all sole-trading healthcare professionals admit to feeling stressed about their tax return, citing challenges tracking down receipts (25%), uncertainty surrounding rebate benefits (21%), and confusion over what is a tax-deductible expense (15%).

Melbourne psychologist Dr Christine Brown said that even though she is self-employed, business accounting is not her forte and she has been guilty in the past of tax time procrastination.

“Tax and financial admin is so complicated and time consuming, it takes a lot just to understand the basics," she said.

"When I became a sole trader, managing my financial admin was not something I thought much about and I was surprised at how much I had to do. When you're short on time you tend to focus on what you're good at, and the tricky admin tasks end up in the "too hard" basket.

"Of course, this is to your own detriment because if you put your financial admin tasks off for too long, you can end up with late fees or a huge tax bill. Please don't ask me how I know this!"

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