Young Aussie reveals massive $15,000 after completing tax return
An Aussie OnlyFans creator has revealed her dismay at being slugged with a massive bill from the ATO after completing her tax return.
An Aussie OnlyFans creator has revealed her shock at being slugged with a $15,000 tax bill after completing her return this year.
Adelaide woman, Kaila Smith, revealed to her followers that she has been told she owes the ATO thousands of dollars for the money she had made through her content throughout the year.
“It is tax time and tax time has done me so f**king dirty. Like, when you are broke you almost have to get a tax return every single time and that used to be me. Last year I got like $500 return,” the 21-year-old explained on TikTok.
“But this year I have to pay pretty much $15,000 in tax and I’ve never paid that much money for anything in my whole life, apart from my car.”
She said it was a “scary thing” to get a bill that large, but was trying to remind herself that she is earning more money than she was in the previous financial year so she “shouldn’t feel bad”.
“I just wish I knew more about tax time and finances. But yeah, that’s my rant of the day,” she said.
However, some commenters were less than sympathetic to the 21-year-old’s rant, telling her this is what happens if you don’t pay tax throughout the year.
“Wants all the income and not the bad that comes with it,” one person said.
“Tell me you have never worked a full time job without telling me you have never worked a full time job in your life,” another wrote.
Kaila hit back at these commenters, explaining she has the money to pay the tax bill in full but this is the first time she has had a job where taxes weren’t automatically taken from her income throughout the year.
“I understand I have to pay taxes LMAO this is literally just a TikTok … chill,” she said.
The OnlyFans creator also noted that she had an accountant and submitted $27,000 in deductions when completing her tax return this year, but noted she would be looking to pay her tax in instalments throughout the year so she wasn’t slugged with a massive bill next tax period.
Aussie OnlyFans creators can make regular tax payments on their income with Pay As You Go (PAYG) instalments if they don’t want to end up with a big tax bill at the end of the financial year.
If creators don’t want to pay throughout the year, the ATO suggests they put money aside to cover their tax bill when it arrives.
Any income above the $18,200 tax-free threshold is subject to income tax.
Kailia is far from the only Aussie ranting about her tax bill online, with the end of the low-and-middle income tax offset (LMITO) meaning plenty of people are facing unexpected debts.
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.
Now that it has expired, many Aussies are realising just how much they relied on that extra boost come tax time – and they aren’t happy.
A recent Finder survey of more than 1000 Aussies saw one in three people reveal this year’s tax refund is very important or critical to their financial health.
The research found 15 per cent of Australians will be using their refund to pay for household bills, five per cent will be putting it towards their mortgage, and 4 per cent will use it to pay off existing credit card debt.
Alison Banney, money expert at Finder, said the current economic situation meant the reliance on tax returns has never been higher.
“Whether it’s to pay back debt, boost their savings, or help with everyday expenses, millions of Australians are relying on a refund,” she told news.com.au.
“However, with the removal of the Low and Middle-Income Tax Offset (LMITO) this year, lots of Australians will likely get less money back in their tax return this year compared to the last two years.”
A Melbourne woman, who goes by Josephine Sunshine on TikTok, was one of the many Aussies who were shocked to discover they owe the ATO money.
In a video expressing her frustration, the young woman said she was “fully convinced that the ATO has a problem with people who work full time”.
“Because I don’t understand how you tax me so much and then you are telling me that I still owe you money,” she said.
“But then people who are on fricking Centrelink or barely working, who got taxed the minimum, get back all their money.”
People have been sharing screenshots of what they owe the ATO online, with food blogger, who goes by the name Rai foodie online, revealing she was slugged with a $10,537 bill.
Some of the many other bills that have been shared range between $6500 and $900.
Clare Vertannes is another Aussie who was “revved up” by the realisation that she owed money after completing her tax return.
“Does the government hate us? Does Australia hate us? I just want to know, asking for a friend,” she said in a recent TikTok video.
She asked her followers if anyone else had logged in to complete their return this year thinking they would be getting “a little something something” back, only to be “slapped in the f**king face”.
Clare claimed she had already paid $20,000 in tax throughout the financial year but was now being told she owed more.
“I have got nothing else to give. Do you want my kidney next?” she said. “I am sure thousands of other people are in the same situation as me.”
RBA’s major clue on next rates decision
Struggling Aussie homeowners could get a rate cut sooner rather than later as the Reserve Bank says it is “increasingly confident” about a reduction.
‘Unfinished business’: Super tax hike looms
Jim Chalmers is eyeing changes to concessions on high-value superannuation accounts, after it was revealed the tax break will cost the government $55bn this year.
‘Game changer’ for millions of Aussies
One of Australia’s leading tax directors has hailed a massive HECS relief package as a “game changer” for millions of people struggling with the crippling debt.