As per Inland Revenue’s Annual Report for the year ended 30th June 2023, a total of $2.182 billion in individual income tax refunds were issued in 2023.
The average over the last five years from 2019 to 2023 has ranged between $354 and $432.
I received nearly double the 2023 average, and this was $804.97.
How do I feel about it?
Well, I’m pretty happy, for sure.
Personally I like receiving a refund at the end of the tax year and it’s nice to receive than to pay. It’s a forced saving of sorts.
Note: I pay my own taxes.
I generally like to err on the side of caution. Because I know that it’s just a timing difference where I will get my money back at the end of the year.
It’s much better than having a tax bill at the end of the year.
However, there is a fine balance to maintain. Because if it means that you’re due a large refund, then that’s lost cash flow. And that can be tough for many people out there at the moment.
Ideally, you want to pay the right amount of tax.
And with the recent Government announcement on the change in the tax thresholds – it will be interesting. Particularly how payroll providers and employers, actually tackle this. Because the change in tax rates is happening during the middle of the year, 31st July instead of at the beginning of the year.
Let’s hope employers and payroll providers will get this exactly right
