TAX NEWS - JUNE 2010

Australia Tax: West Australia tax returns best in nation

New figures from Bankwest show West Australians are expected to receive more money back from the tax department than those in other states.

The bank's latest Taxing Time report has found WA taxpayers are expected to receive an average refund of almost $2,800, 18 per cent more than the national average.

The average national tax return has fallen 13 per cent this financial year.

Bankwest's Adam Connolly said Australians have become more cautious and are using their refund to save or reduce debt.

"People are more likely to save this year than other years," he said.

However, he said West Australians were the least likely to put their tax refund towards savings.

"In particular for Western Australia, what's interesting is that they seem to be more confident than their counterparts in other states.

"Nationally, people are far more likely to save this year than other years but that doesn't seem to be the case in Western Australia. West Australians are either paying down debt or they're spending it. Only one in four West Australians are going to save their tax return this year," he said.