I’m a tax accountant, not the tooth fairy.

I’ve been doing tax returns for 25 years, and honestly? It’s time for some hard truths for your benefit and my sanity.

I’m not the tooth fairy, and your tax return isn’t a magic money pillow.

Every year I hear:

• “Get me a good refund.”

• “Why do I have to pay tax? My workmates all get refunds.”

• “I got a refund last year, why am I having to pay this year?”

Deep breath. Here’s the truth.

A tax return isn’t a prize. It’s a reconciliation.

It simply squares up what you should have paid in tax with what you actually paid, nothing more whimsical than that.

Will I make sure you get the best possible outcome under Australian tax law? Absolutely.

Every deduction you’re entitled to, every offset you qualify for, every detail that applies to your personal circumstances, I’ll get it in there.

But a magical wand? Refund fairy dust? Sadly, no.

Because your tax outcome isn’t just about your job. It’s about your whole financial picture, including things like:

• Whether or not you have private hospital insurance and your taxable income.

• If you live with your partner, your combined taxable income affects tax offsets, surcharges and again private hospital insurance.

• An investment property and whether it’s positively or negatively geared.

• Interest on bank accounts, dividends, managed fund distributions — this income isn’t taxed until your tax return is prepared.

• HELP debt. If you haven’t told your employer you have one and you hit the income threshold, you’re likely to have a tax bill on lodging your return.

• Your employer fails to withhold the correct amount of tax from your wage during the year.

• Have a side gig/small business and made a profit? Tax on the profit is calculated and collected when your tax return is done.

• Many employers pay for, or reimburse, many of the expenses related to your work that if they didn’t reimburse would claim as a deduction. ALWAYS have (if possible) these expenses reimbursed — a much better proposition than claiming as a deduction.

• Deductible expenses that are individual and not related to who you work with: donations to charity, paying an accountant to prepare your tax return, income protection insurance you are paying personally.

• Capital Gains Tax — selling shares, property, managed investments, cryptocurrency at a profit.

See?

SO. MANY. VARIABLES.

Which is why comparing your tax outcome to your co-worker’s is like comparing your toothbrush to theirs, same tool, completely different circumstances.

Your tax return isn’t about luck.
It’s not about how “good” your accountant is.
And it’s definitely not a competition.

Your tax return reflects your tax position, comparisons don’t count.

AND MY JOB?

To help you understand it, own it, and get the best possible result… minus the fairy wings.

Income Tax Returns, the TALLY way.

Financial Advice Disclaimer

The information provided in this article is general information only and does not constitute personal financial advice.

Tally Finance is not a licensed financial services provider, and the content is not tailored to your personal financial situation, goals or needs.

Before making any financial or investment decisions, you should seek advice from a qualified and licensed financial adviser.

Tally Finance does not accept liability for any loss or damage incurred as a result of relying on the information provided.

Kimberlee Brown
B COM (ACC) LLB CPA
T/A TALLY
ABN 81 010 351 330
Registered Tax Agent 26052112