Cue the frustration. The tinge of annoyance. The wave of anxiety. I’d worked so hard,and I had to give so much of it away. It didn’t feel fair.
Getting annoyed over your tax bill is unlikely to make much change.Simon Letch
Somewhere along the line,probably from some finance guru who brags incessantly about how little tax they pay,I had picked up the idea that paying tax was something to resent.
After all,I kept hearing that it wasmy money that the government wastaking from me (as though I wasn’t the one choosing to live in this country).
Then,I had a moment where my dabbling in meditation and mindfulness kicked in. In the midst of all the thoughts and emotions,I paused for long enough to notice.
All this annoyance doesn’t change anything. Was it going to change my tax bill? No. Did the government of the day care? No. Did my accountant care? Nope. In the end,all that negativity was just hurting…me.
Tax laws are forever changing. They will continue to change. Sometimes in your favour,sometimes not.
There was a sobering realisation of the futility of all that internal drama. Regardless of how I felt about it,my tax bill was going to remain what it was.
So,if I’d done everything I could to be tax efficient,then whatever that tax bill is at the end of the year,couldn’t I just pay it without all the annoyance? Did I need to ruin my day over something I had little power to change at that moment?
Now,let me be clear:I’m not saying you should donate more to the government than you owe. I am in favour of being educated about taxes,so you can optimise your finances for tax efficiency.
I’m not saying you should agree with the tax decisions of the current government. Tax laws are forever changing. They will continue to change. Sometimes in your favour,sometimes not.
I’m not even saying you should passively accept tax decisions handed down by the government forevermore. If you have a desire and position to advocate for change,do so.
But no matter how tax efficient you are,whether you agree with government policy,or how hard you advocate for change,your tax bill is unlikely to be zero.
So while you may not be able to do much to change your tax bill,what you do have some power over is the internal experience and emotional response you have to it. You can feel outraged. You wouldn’t be alone.
In fact,some people get so offended about paying tax they make it their life’s mission to get their tax bill as low as possible. Some will even uproot their whole life and move countries.
Economics editor John Kehoe explains the Albanese government's proposed changes to the stage three tax cuts and what they mean for you,come July 1.
You can feel mildly annoyed. I imagine that’s pretty normal. After all,taxes can feel like salt in the wound when you’re already underpaid and your salary isn’t keeping up with inflation.
But personally,I realised I didn’t want to experience the annoyance that so much of the mainstream financial narrative encourages us to feel about paying taxes. I decided that if I’m going to have to pay taxes,I might as well try to feel good about it.
Crazy,I know.
The first step was reframing how I thought about taxes. This wasn’t too hard,especially after having travelled to countries that don’t have the kinds of roads,transport,or public libraries and pools that we do.
Regardless of how frustrating it can be to see tax revenue being spent inefficiently or ineffectively,I still do benefit from many of the services that are funded by taxes.
Besides,Australia already ranks in the top 10 globally for quality of life indicators according to the UN Human Development Index. That’s got to count for something,right?
So,I figured that I could either begrudge “having to” pay taxes,or willingly give them as my contribution and thanks to a pretty great country that I get to enjoy the benefits of living in.
The second step was becoming aware of my emotional response,and changing it. This took more practice and I can’t say I’m fully there. Some years,big tax bills still elicit anxiety.
Treasurer Jim Chalmers is the man who decides what to do with your taxes.Alex Ellinghausen
But I will say I’ve come a long way. These days,I try to welcome tax breaks with gratitude and pay tax bills with acceptance.
While this shift hasn’t made much of a difference to my bank account either way,I can say it has helped reduce financial anxiety and increased my overall financial peace of mind.
Ultimately,isn’t that what we’re all chasing financial freedom for,anyway?
Paridhi Jain is the founder of,which helps adults learn to manage,save and invest their money through financial education courses and classes.
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