tax and health

Paying tax, turn your mindset into a positive

Paying tax and handing over your hard earned cash is often met with resentment. But here's one way to get more upbeat about the whole experience.

1532 0

Paying tax isn’t something that many of us ever get excited about. Frankly it’s something I try to minimise.

But once you’ve done that and if you’re up for it, there is a healthier and more positive way of thinking about all that money which goes to the tax-man.

Consider this, what if I told you that paying tax was actually an act of generosity and something to be grateful for?

Maybe you might laugh, but stay with me as I explain.

We only start paying tax as adults when we earn income or make money through the sale of an asset that we own.

Currently, we aren’t required to pay any tax until we earn over $18,200 per year.

The amount of tax we pay increases as our income increases. So the more we earn, the more tax we  pay.

If we have low income or are elderly, then we’re generally provided with a tax offset to assist in reducing the tax we pay.

When it comes to paying tax, often people feel some resentment for having “lost” a portion of their hard-earned money.

“Some people even go to crazy lengths to avoid paying tax altogether!”

 

But what if instead of viewing tax as something we are losing, what if you thought of it as something you’re giving?

Viewing it as our contribution to creating a safer and better society and helping others who are in need.

We often fail to consider how our money is being used for good to improve things like healthcare and education, supporting the elderly and sick and those people unable to work.

It also goes towards protecting our country, our environment as well as providing support to indigenous Australians and foreign aid to other countries in need.

Let’s assume you earn $50,000 each year then your tax bill to the Australian Tax Office (ATO) last year, would’ve been $7,797.

Of that amount, a Sydney Morning Herald produced tax calculator here found that some of that tax would have been distributed like this:

  • $1245 on health
  • $572 on education
  • $473 on defence
  • $207 on the dole
  • $279 on paying debt
  • $1090 towards assisting the aged
  • $74 towards superannuation and aged benefits
  • $60 on foreign aid
  • $21 towards the ABC
  • $19 on the environment

Thinking about tax in this way, can help to shift your perspective from a negative to a positive. So the more tax you pay, the more you are helping others too.

Subscribe to Financy®

Get Financy's monthly women's money newsletter plus the quarterly Women's Index report to your inbox.

In this article

Join the Conversation


Get Financy's monthly women's money newsletter plus the quarterly Women's Index report to your inbox.
+