Aussies rage at tax time double standards as thousands hit with bills

Furious Aussies are turning on the government and ATO as an increasing number of workers are slapped with unexpected tax bills.

Fury among everyday Aussies is continuing to rise as more people complete their tax returns and realise the nice cash boost they were relying on isn’t going to be landing in their bank accounts.

Social media is full of Australians venting their anger and frustrations after being told they owe the ATO money this year, despite receiving money back at tax time every previous year.

This is largely due to the low-and-middle income tax offset (LMITO) being scrapped this year.

Introduced as a temporary measure in the 2018/19 federal budget, the offset meant those earning between $37,000 and $126,000 were eligible for a tax cut of up $1500.

While most people were aware this measure was coming to an end, many are now being hit with the reality of what losing that extra $1500 actually means - and they’re really not happy.

People who fall into this low and middle income tax bracket are accusing the government of leaving behind everyday Aussies, while the richest people in the nation continue to benefit.

It was confirmed earlier this year that Australia’s richest people will be $5378 better off in the coming financial year and the next.

Aussies are furious about their tax returns this year.

Research shows that the stage three tax cuts, first introduced by the Morrison government, will deliver just an extra $509 in disposable income for the bottom 20 per cent in financial year 2023-2024 and the next.

Middle income earners – those earning around $100,000 – will get an extra $1243 but will have less income to spend compared to 2019.

But the nation’s richest people, those earning $160,000 and above, will be the clear winners, netting a bonus worth nearly $5400.

Recent data from the ATO has added even more salt to the wound for already fed-up Aussies, revealing 66 people who earned more than $1 million in the 2020-21 financial year paid no income tax at all.

Analysis of the ATO’s annual tax statistics by the Australia Institute showed not only had more people dodged tax than years before, they did so while earning significantly more as well.

It found the 66 people who did not pay tax in 2020-21 earned an average of $14.5 million.

Now that so many people are being hit with unexpected tax bills, tensions are reaching a breaking point, with many lashing out at the ATO and government as a result.

A viral video of a 23-year-old worker raging in an expletive ridden rant after receiving a $2000 tax bill has struck a nerve with many Aussies.

“Right, how the f**k do I owe the ATO $2000 when I gave them $48,000. The government is f**king every c**t like aways,” Tyrone Northrop said.

He told Prime Minister Anthony Albanese that he should be “ashamed of yourself” for “not helping a brother out”.

Tyrone Northrop is one of the many Aussies who is outraged after getting a tax bill. Picture: Tyrone Northrop/TikTok

The 23-year-old’s rant struck a nerve with thousands of other people who have found themselves in a similar situation. Picture: Tyrone Northrop/TikTok

Thousands of furious Aussies flocked to the comment section of the video to share their own outrage.

“I’m with you on this one. 10 million of us in Australia are going through this, yet the millionaires don’t pay any tax,” one person said.

“The government is just extorting us now,” another said.

Others claimed Australia’s tax system was “stuffed”, while another commenter branded tax debts “robbery”.

The ATO’s Facebook page has also been flooded with comments from angry taxpayers.

“So because they government is showering rich people and businesses with tax cuts, we might end up with a debt we can’t afford to pay? How many people are going to end up in dire straits this year because of this?” one commenter asked.

“I’m seeing people have debts of thousands of dollars this year when it’s never happened before. For a country that is supposed to be one of the wealthiest, you surely know how to ruin people.”

One person accused the government of “always looking after the rich”, adding: “This Government is absolutely disgusting. As if people are not struggling enough and now you can’t even get a good refund.”

Another wrote: “So the rich stay rich and the poor get poorer? Absolutely disgusting from the government for letting this happen.”

People have been sharing the shocking amount of money they owe the ATO this year, with one Aussie being hit with a whopping $10,000 bill.

One Aussie is facing a more than $10,000 tax debt this year. Picture: @rai.foodie/TikTok

A food blogger, who goes by the name Rai foodie online, left her followers horrified when she revealed she owed an estimated $10,537 to the tax office.

“When you thought you were finally getting a tax return this year,” she captioned the TikTok video.

Her video instilled fear in the social media users who are yet to complete their returns, with one person noting, “I’m scared to do mine this year”.

“See this why im avoiding my tax bro,” another said.

Others commented that they would “die” if they got that kind of tax debt, with another branding the situation “heartbreaking”.

Cameron Smith is another Aussie facing a large tax debt this year, revealing he owes $6562 to the ATO.

“Thought I’d get a trip to Europe but NO, the government says otherwise,” the Adelaide local captioned the TikTok video.

Melbourne man Andrew Truong has found himself in a similar situation.

“I really wish this was a joke, I hate HECS,” he wrote online after finding out he owed $5018.

Originally published as Aussies rage at tax time double standards as thousands hit with bills