October 31 tax deadline looms: Half of self-employed Aussies yet to file with time, cost and stress holding them back
New data from tax and accounting service Hnry reveals nearly half (45%) of self-employed Aussies have yet to file their tax return and 14% haven’t begun preparations at all – despite the threat of a $313 failure to lodge fine.
The Hnry Sole Trader Pulse – the only regular, comprehensive snapshot of self-employed Aussies – reveals the tradies, freelancers, consultants, and health and wellness professionals of the country are putting off laborious financial admin, reporting issues with the high cost, stress, confusion and number of hours involved.
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 Australian spends over $1,000 and 15 hours preparing their tax return – stealing two working days from their week
- A third (33%) of sole traders are feeling stressed about their tax returns, 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 self-employed have had a strong quarter: 55% report higher turnover since the previous quarter – the highest since June 2022 – while 54% feel financially secure and 59% are confident in their job security
- Positive feelings around job satisfaction (63%), work-life balance (64%), and overall wellbeing (55%) remain consistently high for sole traders – reflecting a spirit of resilience in this cohort that makes up 10% of Australia’s workforce
Karan Anand, Managing Director of Hnry Australia, offered expert insights on what self-employed professionals can do to make tax time less tedious, and commenting on the research findings, stating, “The 1.5 million self-employed sector, growing by 50,000 annually, is the engine room of our economy. They’re a thriving, resilient bunch but with the average tax return submission taking 15 hours to complete, it’s no surprise so many are putting it off.
“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 vital our sole traders have the tools and information they need to file. 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 which no one wants to cop.
“We know tax and financial admin continues to be a significant drain on productivity. To ease the pressure, keep accurate records year-round, plan early so it’s not a last-minute scramble, and don’t hesitate to get a second opinion – whether from a friend, an accountant, or the people at Hnry.”
