It’s tax time again. Reframe tax as a financial habit, not a burden

Many people delay their tax return because of fear, uncertainty, or mental overload. As behavioural specialists would suggest, reframing your mindset can make a big difference. Try thinking of tax time as a check-in on your financial health — just like an annual health check-up. It’s not just about getting a refund or paying a bill — it’s a chance to understand your income, spending, and opportunities for growth.

Understand Your Financial Story

Tax time gives you a detailed look at your income sources, deductions, and savings opportunities. This is powerful information.

• Are you consistently overspending?
• Are you maximising work-related deductions?
• Could you salary sacrifice to save on tax next year?

Use this info to build awareness, which is the first step to meaningful behaviour change.

Break It into Bite-Sized Tasks

Behaviourally, large tasks like “doing your tax” feel overwhelming, which is why we procrastinate. Break it down:

• Gather your income into (PAYGs, invoices, etc.)
• Track your deductions (work expenses, charitable donations)
• Book a time with your tax agent or register with the ATO online
• File and follow up

Treat it like a series of small wins, not one big task. Each small step builds momentum.

Align With Your Bigger Financial Goals

Link your tax return or refund to a positive financial outcome:

• Paying off debt
• Building your emergency fund
• Starting an investment account
• Planning a holiday (within your means!)

This helps make the task feel worthwhile and emotionally rewarding — a core behavioural principle for building better habits.

Address the “Head in the Sand” Mindset

From a coaching point of view, people often avoid tax due to fear or past experiences:

“I always owe money”

“It’s too complicated”

“I’ll deal with it later”

Reassure them: Knowledge is power. Even if you do owe money, you’ll feel more in control once you know the facts — and you can set up a payment plan if needed.

Avoiding tax returns can cost you. get on the front foot and lodge your 2024/25 tax return to avoid late fines and enjoy the peace of mind of being organised!

Consider seeing a Financial Coach

If taxes feel overwhelming, you’re not alone — but the earlier you face it, the more empowered you’ll feel. Need support? Whether it’s mindset, budgeting or taxes — consider seeing a Financial Coach for practical tools and coaching strategies.