More than a third of New Zealand employees are likely to be eligible for tax refunds of almost $300, a survey suggests.
And, according to one of several companies profiting from returning millions of dollars in overpaid tax, the handbacks are getting heftier.
Geoff Matthews, director of online tax refund
agency TaxRefunds.co.nz, said the average tax return had been steadily increasing for the past four years but returns for the 2008 to 2009 financial year had been the highest the company had seen.
Based on 55,000 tax return applications with his company between July 7 and 31 this year, he believed that about 35 per cent of workers were likely to receive an average refund of $290.
He said most people were paying too much tax because of changing work patterns.
"More people are working part-time, part of a year, seasonal work, two jobs, or earn commission sales or cash bonuses. This creates peaks and troughs in income and the peaks are always taxed at a higher rate."
He said a worker's chance of a refund also increased if his or her income was close to one of the salary thresholds of $38,000 or $60,000.
Mr Matthews said his company had returned more than $54 million to taxpayers and a further $20 million was due to be paid out over the next month.
The company is one of many profiting from tax returns. Most of the agencies are internet-focused and charge clients a percentage of their tax return - or are free if there is no return.
Inland Revenue also offers a free service on its website www.ird.govt.nz. An IRD spokeswoman said: "We advise anyone signing up with a third party to manage their tax refunds to please read the fine print on the website ..."
A Nelson tax refund agency, www.mytax.co.nz, helped to return $40,000 in overpaid tax to Auckland business consultant Antony Taylor in July.
WHAT THEY GOT
Average tax refund:
2004 - $196
2005 - $196
2006 - $204
2007 - $234
2008 - $262
2009 - $290
2004-2008 information based on 942,000 tax refund applications received between September 1, 2008 and March 31this year. The 2009 information is based on 55,000 tax refund applications received between July 7 and 31.
