New data from tax and accounting service Hnry reveals nearly half (45%) of independent tradies have yet to file their tax return – despite the threat of a $313 failure to lodge fine and the deadline being just days away.

The Hnry Sole Trader Pulse – the only regular, comprehensive snapshot of self-employed Aussies – reveals the tradies of Australia are putting off laborious financial admin – reporting issues with the high cost, stress, confusion and number of hours involved. Key findings of the nationally representative survey include:

• The main factors holding Aussie sole-traders back from filing their tax return include:
  • Time constraints (43%)
  • Stress surrounding the tax return process (26%)
  • Believing that rebates will be minimal (17%)
• This state of tax paralysis is no surprise, given the average self-employed tradie spends over $1,300 and 13 hours preparing their tax return– stealing nearly two working days from their week
• Over a third (37%) of independent tradies are feeling stressed about their tax returns, with sole traders citing challenges in tracking down receipts (25%), uncertainty regarding rebate amounts (21%), and confusion over what can and can’t be claimed as a tax-deductible expense (15%)
• Despite a tough few years and facing the burden of tax-time, Australia’s tradies have had an exceptionally strong quarter: 63% report higher turnover since the previous quarter – while 55% feel financially secure and 63% share positive feelings around job satisfaction

“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 important to stay on top of things. 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,” said Karan Anand, Managing Director of Hnry Australia.

(28 Oct 2024)