‘Harder in the long run’: Warning for self-employed Aussies as tax deadline looms

A huge amount of Aussies are still yet to file their tax return despite the threat of a hefty fine, and there are just days until the deadline.

Business woman stress, burnout or laptop anxiety 404 error, financial stress or mental health in house. Depression, tired or remote employee with headache from audit, tax finance or financial debt, mortgage interest rates generic

Almost half of Australia’s 1.5 million self-employed workers haven’t filed their tax return, with the deadline only days away.

New data from tax and accounting service Hnry has revealed more than 10 per cent of self-employed Aussies haven’t even started preparations, despite a $330 fine for failing to lodge tax returns on time.

Olsen Joseph, a 55-year-old roofer from Kiama in NSW’s south, said his tax return use to take more than 10 hours on top of his usual weekly financial admin.

“After a long day on-site, the last thing you want to do is sit at a computer and deal with finances — it’s not my expertise,” Mr Joseph said.

“But for all the advantages of being your own boss, it’s part of the deal.

“It’s tedious and time-consuming, so you tend to put it off, but that only makes it harder in the long run.”

The data found 43 per cent of Aussie sole-traders put off tax returns due to time constraints, while 26 per cent reported stress surrounding the process, and 17 per cent believing rebates would be minimal.

Aussies could be facing a huge fine if they don’t get their tax return in on time. Picture: NewsWire / Nicholas Eagar

A third of respondents reported feeling stressed about tax returns, with tracking down receipts being listed as a top concern for 25 per cent of people, as well as uncertainty about rebate amounts (21 per cent) and confusion over what can and can’t be claimed as tax-deductible expenses (15 per cent).

Hnry Australia managing director Karan Anand 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 vital our sole traders have the tools and information they need to file,” Ms Anand said.

“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 which no one wants to cop.

“We know tax and financial admin continues to be a significant drain on productivity. To ease the pressure, keep accurate records year-round, plan early so it’s not a last-minute scramble, and don’t hesitate to get a second opinion – whether from a friend, an accountant, or the people at Hnry.”

Time constraints and stress surrounding the process were some of the reasons given for putting of tax returns, according to data from Hnry.

Australian Taxation Office Assistant Commissioner Rob Thomson previously warned those looking to engage a registered tax agent must also act before the end of the month to avoid being stung by fines.

“If you’re using a tax agent, you need to be on their books before then (October 31),” Mr Thomson said.

“It is important taxpayers are aware there can be penalties for lodging a tax return late.

“If you believe you may have difficulty meeting your tax obligations, contact the ATO prior to the deadline to lodge so that we can take your circumstances into account.”

Despite tax time pressure, more than 60 per cent of Australia’s self-employed sector reported positive feelings around job satisfaction and work-life balance, while 55 per cent reported positive feelings regarding overall wellbeing.

More than 50 per cent reported feeling financially secure, with nearly 60 per cent confident with job security.

This is despite 55 per cent of respondents reporting higher turnover compared to the previous quarter, marking the highest figure since June 2022.