KEY POINTS
- The ATO’s MyTax portal was launched a decade in the past.
- It is simpler to make use of than its predecessor, eTax.
- However the majority of Australians proceed to make use of an accountant to lodge their tax return.
Ten years in the past, the Australian Taxation Workplace (ATO) created the myTax portal, a simple strategy to lodge your tax return on-line.
There was an “e-Tax” submitting choice earlier than the 2015-16 tax 12 months, however this was fairly difficult and barely higher than filling out a kind on-line.
As compared, myTax is easier and extra automated. It’s out there 24 hours a day, is free to make use of, and you’ll sometimes get your refund inside .
However chances are high you gained’t be utilizing it.
In actual fact, barely lower than 36 per cent of Australia’s 15 million taxpayers used the myTax portal in 2020-21 – the newest tax 12 months for which the tax workplace has printed information.
About 64 per cent of tax returns have been lodged via tax brokers. This is without doubt one of the highest charges among the many 38 OECD nations.
In the meantime, simply 0.6 per cent of Australians nonetheless used the paper-based kind.
So why have Australians – who’ve rapidly embraced the web for all the pieces from procuring to relationship – been so sluggish to embrace myTax?
For some, notably older individuals, it’s about being intimidated by the know-how. Others could also be involved with cybersecurity danger.
However for many, it’s concerning the perceived complexity of the tax system and the method, whatever the know-how. They see utilizing a tax agent as simpler and the way in which to maximise their tax refund.
Whereas in some circumstances this can be true, in lots of cases it’s merely a notion – however one the tax workplace might want to handle if it desires to advertise use of myTax.
Causes for low myTax uptake
suggests most individuals who’ve used the myTax portal suppose it’s straightforward to make use of.
193 taxpayers who’ve used the system have been surveyed. About three-quarters agreed the system was clear and comprehensible, and stated they’d hold utilizing it.
However, in fact, these are individuals who have chosen to make use of the system, so their responses don’t shed a lot mild on the explanations individuals don’t use myTax.
Solutions to that come from different printed analysis, particularly from the Inspector-Basic of Taxation (the unbiased workplace investigating complaints concerning the tax system) in addition to the Home of Representatives’ Standing Committee on Tax and Income.
Proof submitted to those our bodies signifies that Australians choose tax brokers to keep away from errors in claiming deductions.
The parliamentary committee’s 2018 inquiry into the tax system was advised using tax brokers ballooned from about 20 per cent within the Nineteen Eighties, peaking at about 74 per cent of all taxpayers:
In brief, habits are onerous to interrupt. Having come to depend on tax brokers, most Australians hold utilizing them, regardless of the system being vastly improved.
For instance, the myTax system now simplifies the method by pre-filling information from authorities companies, well being funds, monetary establishments and your personal employer. About 80 per cent of our survey respondents stated this was useful.
Taking good care of the digital divide
This implies the primary barrier to rising use of the myTax system is usually behavior and the notion the tax system is simply too difficult to navigate with out an knowledgeable.
There’s additionally a small share of people that really feel uncomfortable with computer systems.
That is mirrored within the minority of respondents in our examine who stated they have been unlikely to make use of myTax once more, in addition to the tax workplace’s information exhibiting some individuals proceed to stay with paper lodgement.
These extra more likely to discover the system daunting are the aged, these with low English abilities, individuals with disabilities and people with low instructional attainment.
Jawad Harb is a PhD candidate at RMIT Univeristy.
He receives funding for associated analysis from RMIT College. He’s affiliated with RMIT College as a PhD candidate. He additionally receives a Analysis Stipend Scholarship (RSS-SC) funding from the Australian Federal Authorities to finish his PhD diploma. Jawad is affiliated with St John Ambulance Victoria as a volunteer.
Elizabeth Morton is a analysis fellow of the RMIT Blockchain Innovation Hub and a taxation lecturer at RMIT College.
Elizabeth Morton is contracted to co-facilitate a short-term coaching contract for tax and crypto facilitated by UNSW for the ATO. This isn’t associated to the subject of this text. Elizabeth has not acquired grant funding for analysis in relation to the content material of this text; nonetheless, does undertake analysis on this house.
