Every Aussie has experienced the moment when you finally get your first “real” job, you get your first pay slip and are hit with the brutal reality of just how much of it goes towards tax.
After the initial shock, most people get used to it pretty quickly, but it seems there is one generation in particular that’s still not impressed.
It turns out Millennials are really not happy with the amount coming out of their pay, with a recent Finder survey revealing 80 per cent believe they pay too much tax.
The survey of more than 1000 workers found almost two thirds of Aussies — equivalent to almost 13 million people — believe they pay too much tax.
Behind Millennials, Gen Xers (those born between 1965-1980) are most likely to agree with this statement, with 72 per cent sharing the sentiment, along with 63 per cent of Gen Zers.
The eldest generation, Baby Boomers, are least likely to agree, with just 39 per cent feeling they pay more than their fair share of tax.
Sarah Megginson, personal finance expert at Finder, said the cost of living crisis means people are paying more attention to things like how much of their income is going towards tax.
“Many households have reached breaking point, in terms of squeezing as much as they can out of their salary to get by,” she said.
“At long last, inflation is finally trending downwards, but so many Australians are still under a lot of financial stress.”
Young Aussies aren’t shy about sharing their feelings — with many taking to social media to air their frustrations.
“When you work extra hours just for those hours to be taxed away,” one user, who goes by Bali Tuesday, said in a TikTok.
“Australian Taxation Office have some explaining to do,” she added.
Another user, Xan, shared a video with the caption: “Me looking at my pay slip and wondering where 25 of my 80 hours went.”
He added that the government “apparently worked those hours for me”, joking that he “works hard so the government doesn’t have to”.
However, there is some relief in sight, with Stage 3 tax cuts coming into effect from July 1.
The looming cuts come as it was revealed almost a quarter of Aussies feel pessimistic about their financial future.
Earlier this year, Prime Minister Anthony Albanese backflipped on his vow to support the planned cuts brought in by the Morrison government. He instead revised the package to slash the income high earners received, while simultaneously bolstering support for low and middle income earners.
Finder revealed Australians earning between $45,000 and $135,000 a year will be getting a further tax cut of $804, on top of previously announced cuts.
That means someone earning the median Australian income of $83,200 will get a $1759 tax cut over 12 months, almost double the previous $955 tax cut.
Those earning over $200,000 a year will get a cut of around $4,529, instead of $9,075 under the old stage 3 tax cuts.
Ms Megginson said the cash boost will be a welcome relief for many Aussies who are currently struggling.
“Struggling households will see more money back in their pocket to help them battle expenses,” she said.
“If you can afford it, the best thing Aussies can do is put the extra amount aside to help weather any future storm. Small amounts can add up into major savings over time.
“Otherwise, take the opportunity to put those savings into repaying debts and bills and gaining back a little peace of mind.”