Barefoot Investor reveals how much Aussies should get back in tax returns

As tax time approaches, the Barefoot Investor has warned that Aussies are throwing away their tax gains on one simple mistake.

Tax time is almost upon us, and the average Australian stands to get back nearly $3000 in refunds.

The Australian Taxation Office (ATO) has given out $30.53 billion in tax refunds during the current 2020-2021 financial year, as of June 17.

That’s an average refund of $2820 per Aussie.

However, you will lose $400 of that windfall if you fall for one simple trap, according to Scott Pape, also known as the Barefoot Investor.

He said: “74 per cent of Aussies use a tax agent or accountant – which typically costs $400.”

However, he said that most workers have a fairly simple tax return and should be able to file it themselves.

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Barefoot Investor Scott Pape. Picture: Supplied

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“Now if you’re a business owner, an accountant can be invaluable,” Mr Pape said.

“Same if you have complicated tax structures like family trusts.

“Yet if you’re an average wage earner, it might be time to kick H&R [a tax agency] down the block.”

He said there was a much better way to complete the tax return.

“Seriously, if you’re a wage earner with a simple set of affairs (i.e. most people), you should get a new accountant,” Mr Pape said.

“In fact, I have the perfect guy. He’s reliable. He won’t get you in trouble. He’ll come to you. And best of all, he’s free.

“It’s called ‘myTax’.”

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The average Aussie is due $2800 in tax refunds.

How do I file my tax by myself?

The myTax website is available through your myGov account.

You will need to link it with the ATO website.

From the online services homepage, select the ‘Prepare’ link.

Next, select the boxes relevant to you including your income, investments and any government payments.

The check boxes should already be pre-filled as your employer and bank should have shared information with the ATO.

You will then be asked to review this information to make sure it’s correct.

You can always save your return and go back to it later.

Before you lodge your return, myTax will estimate how much you owe or are owed based on your information.

There’s also an easy “short cut” method for tax payers who worked from home.

You can claim back 80 cents per work hour for all their running expenses, instead of calculating specific costs.

Scott Pape warned that the tax man was targeting three different areas.

Mr Pape warned that the ATO is clamping down on three things this year – claiming on work-related expenses, rental income and capital gains from cryptocurrency.

People are able to file their tax returns in the new financial year, beginning July 1.