Do you Treat Yourself with Your Tax Refund?

Do you Treat Yourself with Your Tax Refund?

Close to half of New Zealanders spend their tax refund on a treat for themselves, or treat it as a bonus

Auckland, 18 February 2016 – The most recent survey by consumer satisfaction company, Canstar Blue has revealed that Kiwis enjoy splashing out with the money they receive from their personal tax refund each year, with 48% admitting to indulging in a treat with their pay out.

Generation Y are the most likely to head to the shops with their new found cash (66%) while the older generations are more likely to keep their cash in hand with just 27% of 60-69 year olds spending their refund.

Of the regions, residents of our windy capital are the most likely to indulge with the new addition to their bank balance (59%) while Cantabrians and those in Otago are least likely to treat their refund as a bonus (40%).

Many people see the money coming back into their account as something additional to their annual pay, rather than viewing it as a sum of deductions that have been taken from their salary throughout the year, says Canstar New Zealand, General Manager, Jose George.

“It takes a simple mind shift to view the refund as what it really is – a refund of your money that you may have overpaid in the amount owed for your taxes. However it is pleasing to see that 40% of Kiwis are actively saving their refund when it comes in.”

Men are more likely to save their refund with 43% putting it into a safe place compared to only 37% of women.

Register for a refund?

Close to 80% of New Zealanders apply for their tax refund every year and 63% regularly receive a tax refund when they do.

It goes to show that applying for one, or at least checking if you are eligible, is a smart move as the majority of people who do are rewarded with a pay day, says George.

“Those 70 years old and over and the most likely age bracket to regularly receive their refund when they submit an application.”

But there are many who don’t understand the process and 44% of New Zealanders don’t realise what actually qualifies them to receive a tax refund.

There are many tools available online that explain the requirements to apply for your refund and also many resources, such as the IRD website, that explain the process so that people can better understand just what it is that ensures they qualify for their refund, says George.

Who would you choose?

When it comes to agents many Kiwis check the market before deciding on one to look after their refund – 36% shopped around before they chose their provider, though women are significantly less likely to look at their options (30%) compared to men who are more likely to compare the benefits of each (41%.)

www.canstarblue.co.nz

The winner of the Canstar Blue Consumer Satisfaction Award – Personal Tax Agent for 2016 is MyTax.co.nz with a near perfect score of 5-star ratings across the board.

MyTax, an IRD approved tax-agent, was the only agent to receive a 5-star score from consumers for overall satisfaction with the provider, says George.

“MyTax work through e-file meaning that all applications can be completed and sent to the IRD online, without any hassle for the consumer. They pride themselves on fast feedback and outstanding communication, understandingly so as their consumers rated them full points for customer service.

“MyTax is also the only online tax refund service in New Zealand to offer Fly Buys. Everyone who applies receives 10 Fly Buys bonus points – whether they receive a refund or not.”

When it comes to their tax refund provider, consumers are driven by value for money, in terms of is it worth what they paid for the service (36%), ease of application (21%) and the quality of advice provided (15%).

Tax refund habits by region: (only exceptions)

Auckland: Aucklanders are least likely to have a tax refund agent that takes a small percentage of their refund as a service fee (61%), and most likely to save their tax refund money (47%).

Waikato: Those in the Waikato are least likely (equal with Otago) to have shopped around before choosing their tax refund provider (32%).

Wellington: Wellingtonians are most likely to spend their tax refund on a treat for themselves/treat it as a bonus (59%).

Canterbury: Cantabrians are least likely to regularly receive a tax refund when they apply for one (57%), most likely to have a tax refund agent that takes a small percentage of their refund as a service fee (70%), least likely (equal with Otago) to spend their tax refund on a treat for themselves/treat it as a bonus (40%), and most likely to not understand what it is that qualifies them for a refund (50%).

Otago: Those in Otago are most likely (equal with Bay of Plenty) to regularly receive a tax refund when they apply for one (66%), least likely to apply for a tax refund every year (75%), least likely (equal with Canterbury) to spend their tax refund on a treat for themselves/treat it as a bonus (40%), least likely to save their tax refund money (34%) and least likely (equal with Waikato) to have shopped around before choosing a tax refund provider (32%).

Bay of Plenty: Those in the Bay of Plenty are most likely (equal with Otago ) to regularly receive a tax refund when they apply for one (66%), most likely to apply for a tax refund every year (85%), least likely to not understand what it is that qualifies them for a tax refund (26%), and most likely to have shopped around before choosing their tax refund provider (40%).

About the survey
Canstar Blue commissions respected professional market research agency Colmar Brunton Australia, to undertake research on our behalf using SSI NZ panel.

The outcomes reported here are the results from a survey of Kiwis who have applied for a tax refund in the last 12 months. In this case there were 842 people surveyed.

*This geographical breakdown outlines exceptions only.

ENDS

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