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Tax can be a tricky thing to navigate, and plenty of people are confused at each end of the financial year by the whole process.
It appears the government is aware of just how confusing Australia’s tax system can be, as the Treasury provides a slideshow discussing the complexities.
According to the slideshow: “As the world has become more complex, so has Australian tax law.”
“We now have more than 14,000 pages of tax law dealing with countless specific scenarios. This has resulted from trying to deliver different policy outcomes, for different taxpayers, in different situations. Having fewer policies that apply to all taxpayers, rather than a range of different policies for different taxpayers, would help to reduce complexity.”
With this in mind, it can be beneficial to address these issues in the workplace. According to the chief executive and co-founder of TaxLeopard, Selda Kaplan, educating employees not only boosts their knowledge but can also assist in promoting a healthy work environment.
“Tax education is particularly important for employers because it contributes to staff retention. When employers invest in educating their staff about tax regulations, deductions, and strategies, it demonstrates a genuine concern for their employees’ financial success,” Ms Kaplan explained.
“This, in turn, fosters a sense of loyalty and engagement among employees, leading to higher job satisfaction and a decreased likelihood of seeking employment elsewhere. By equipping employees with the necessary knowledge to navigate their taxes, employers not only enhance their financial wellbeing but also create a supportive work environment that promotes staff retention.”
Retention aside, teaching employees the complexities of tax can improve their financial prowess, inside and outside of work.
“By understanding tax regulations, deductions, and credits, employees can optimise their finances, minimise their tax burden, and increase their net income. This knowledge also enhances their overall financial literacy, contributing to their financial wellbeing and stability,” Ms Kaplan said.
Implementing education programs in the workplace to discuss taxes should be left to the professionals, said Ms Kaplan. This removes the guesswork and provides expert commentary.
Ms Kaplan commented: “The best methods for providing tax education to staff include partnering with tax professionals to offer general information and resources, organising workshops or training sessions led by experts, disseminating newsletters with updates from reliable sources like the ATO, and utilising online learning platforms.”
“It is crucial to clearly communicate that this information does not constitute tax advice and to encourage employees to seek professional guidance when needed,” she said.
“Additionally, individuals can educate themselves on tax by accessing online resources specific to their occupation or industry, which outline eligible deductions and provide helpful guidelines.”
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Benefits include any additional incentives that encourage working a little bit more to obtain outcomes, foster a feeling of teamwork, or increase satisfaction at work. Small incentives may have a big impact on motivation. The advantages build on financial rewards to promote your business as a desirable employer.
Jack Campbell
Jack is the editor at HR Leader.
