You’re ready to apply for your Australian tax refund. So you take out your phone and start a Google search. It’s not long before you start to see adds for ‘instant tax refunds’, ‘same day tax refund’, or maybe ‘on-the-spot tax refunds’.
But is getting your money immediately really your best option?
Getting your money immediately is always better than waiting a fortnight, right? Wrong!
The truth is that there is no such thing as an instant tax refund from ATO.
When you sign a contract, what you really get is a high-interest, short-term loan from a third-party.
In reality, this could be a decision that leaves you thousands of dollars out of your pocket. Here’s why.
The instant tax refund may put the money in your hands sooner, but it also hides the risk of costly fees and hidden late charges.
On top of that, you could end up paying basic tax return fees which are often much higher than what you would normally pay for services from a reputable and professional tax agent.
What if the ATO delays your refund?
You could pay additional interest and fees and this happens often. Most Australians wait around 6-10 business days after they have filed their tax return, but this is not always the case. It could get even worse than that and sadly, you could pay more than your total tax refund!
Here is an example:
Monika is expecting $1,600 from the ATO.
The idea of receiving money instantly sounds fantastic! She signs a contract for a same day tax refund and gets $1000 in her pocket immediately after the initial fees and charges.
Later, she receives a message from ATO that her refund has been withheld as some details on her tax return need to be clarified.
Now she owes money to the tax refund business. How much? $1000 for the instant tax refund, plus $290 in fees.
This is okay, but Monika cannot afford to pay more than $100 per month and she gets hit by an additional 4% to her original loan per month+ $12 late fee every month, and this is $52 each month. Now only $48 goes for her debt from her $100.
Finally, her $100 monthly payments will continue for 27 months and she will end up paying her $1,000 loan + $1,694 in interest and fees and this is $2,694!
Why choosing a professional tax agent is a better option?
More than 70% of those who file (including backpackers, international students or residents) use the help of a tax agent for a good reason. You will have the confidence that your return was filed right.
A professional tax agent like Taxback.com can save you money, help you claim all the credits you can avail of and maximize your legal tax refund. Your complete compliance with ATO is guaranteed.
The fees are affordable, the service is reliable and ISO certified, and you will have 24/7 live chat support from experienced tax agents. What is more, the money will be sent straight to your bank account worldwide. Get your australia tax back now!
Apply for your Australian tax refund