Self-employed 'missing out on $3.5 billion in tax deductions'
Four in ten sole traders are failing to take full advantage of the tax deductions available for business expenses, according to a digital accounting services provider.
Digital accounting services platform Hnry has released new research which estimates that Australia’s 1.5 million self-employed workers are missing out on $3.5 billion in unclaimed business expenses each year.
The research found that 42 per cent of sole sole traders are not claiming all of their tax deductions and spending an average of eight hours a week on financial administration.
Hnry Australia managing director Karan Anand said many sole traders are missing out on important deductions that they’re eligible for.
“Claiming expenses can make a huge difference to a business, especially when we’re dealing with inflation and a cost of living crisis,” said Mr Anand.
In order to address this issue, the company has now launched a digital debit card, the Hnry Visa Business Debit Card, which automatically lodges every business expense and immediately offsets tax.
The new card is available through the Hnry app and can be used anywhere that accepts Visa both in store and online.
Hnry said the card was developed in response to customer feedback and helps captures business expenses and eliminates the need for mountains of receipts.
“The Hnry Visa Business Debit Card does it all for business owners, allowing people who work for themselves to never miss a tax deduction again, and focus on what really matters - doing their jobs,” said Mr Anand.
“This new product is the latest step in our commitment to driving financial empowerment for the 1.5 million sole traders in Australia.”
The the card operates in a similar way to a business account, tacking spending and recording it in the user’s Hnry account.
“It allows customers to top up their cards and receive a notification to upload the receipt immediately after any purchase, to offset the tax straight away - storing the information for the long-term, eliminating the need for the mountain of receipts,” the company said.
The card is backed by card issuer and program manager, Novatti Group.
Novatti chief executive Mark Healy said Novatti and Hnry have a shared goal of creating innovative payment solutions to make people’s finances easier and more accessible.
“We are excited to showcase our expertise in card issuing through the Hnry Visa Business Debit Card, and support Hnry on its ambition to make earning an independent income simpler for all,” said Mr Healy.
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