5 reasons you should be paying tax
The stereotype is that every one hates the tax man. Maybe I’m the only one that doesn’t.
For one thing, the ATO are always really nice when I call. For another, I’m still one of the lucky sods that doesn’t earn enough to pay much tax so have yet to feel the pinch of pain that tax time can be.
I don’t hate the tax man anywhere near as much as I hate the banks, phone companies and insurance providers.
Here are 5 reasons why you should find some love in your heart and pay your tax.
It’s illegal if you don’t pay tax
Probably a good place to start- if you don’t pay your tax, you will eventually face a penalty. Sometimes that means jail terms, Crazy thought I know, but that’s not really in my life plan so I’m going to stick with the ol’ PAYG instead. You also never have to pay any of those pesky fines that float about, saving yourself money and heartache.
It can be an effective savings mechanism
This works for me every June- tax will come out of my paycheck and I end up getting some of it refunded. Ask your employer to increase the amount they set aside from your income every week, and see the rewards at tax time. Not only will you rest easy, knowing that there will be no sting at the end of the financial year, you’ll have a tidy little sum to invest or spend on a big purchase. I funded two overseas trips from my tax refunds, and over contributed from my Centrelink payments to ensure that some money was set aside. This works especially well if you are someone who has no ability to save unless the money is totally and entirely out of your grasp. I’ve never had a bonus in my life, but tax time feels just as good.
PAYG takes the money out of your hands
I don’t know people ever handled tax time before Pay As You Go. Out of sight, out mind as far as I’m concerned and with consistent withdrawals over the working year, tax ceases to be a painfully huge amount and becomes a series of manageable amounts. A system where you can never end up owing the Tax Office is my kind of system, and will save you having to max out a credit card or break a term deposit and losing money that way.
Tax pays for a lot of benefits
Tax saves thousands of dollars every time we break a leg. It forks out when we lose our jobs, or have to look after someone with a disability. Of course, it was our money to begin with but one look at the American system makes it pretty clear how lucky we are to have it. To live in a country where healthcare is free (though flawed) has to be one of the greatest of privileges. Look back over the year that has gone, and calculate how much you would have spent on medical expenses alone if the government didn’t subsidise it.
Because if you don’t, you’ll end up with five years’ worth of tax returns to do
And no one wants that. Much easier to just do it every June, and live a life of peace the rest of the year.
What do you think are the benefits of paying tax?
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