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“Tax time is a source of increased anxiety for many Australians. Employers have an opportunity to minimise the effect of financial stress among employees, and protect the productivity of their organisation by offering financial wellbeing services as part of their employee benefits programmes,” recommends Emma Baxter, Director, YOUtax Pty Ltd.

YOUtax Pty Ltd is a sponsor company at the marcus evans HR Summit 2021. 

How does personal financial stress impact employers?

Personal finance issues are a contributing source of stress in Australia. Of course, stress in the right doses is helpful and necessary for human flourishing, but chronic stress can limit one’s capacity to live a satisfying and productive life. It is no secret among business leaders and HR professionals that stress and its side effects can negatively impact an individual’s physical and mental health, personal relationships and productivity in the workplace.

In fact, Worksafe Australia have linked stress to high levels of unplanned work absences and sick leave, increased staff turnover, poor work performance and poor quality outcomes, attending work in a withdrawn and disengaged state, and a rise in presenteeism (staying back at work unnecessarily because of job insecurity). According to the Black Dog Institute, stress costs employers and the Australian economy upwards of AUD 12 billion in reduced productivity every year.

What can employers do to minimise financial stress among employees?

Employers have an opportunity to minimise the effect of financial stress among employees and protect the productivity of their organisation by offering financial wellbeing services as part of their employee benefits programmes.

Tax time in particular is a source of increased anxiety for many Australians. It is the time of year where an individual must face their finances so they can comply with their tax filing obligation. This can be overwhelming, especially for time poor professionals focused on building their career and achieving some sense of work life balance.

Corporates including tax services as part of financial wellbeing programmes is a great way to offer employees the chance to connect with a trusted tax advisor who can guide them through the taxation process, and offer personalised advice to improve their overall financial wellbeing. 

How can a tax agent add value to other employee benefits?  

It is quite common for employee benefit programmes to include superannuation and private health insurance incentives, but these set and forget offerings aren’t subject to review as an individual’s income and personal circumstances change year after year.

Both the private health insurance rebate and superannuation contribution caps are reconciled in an employee’s annual tax return. That is why it is advantageous to have a trusted accountant offering personal advice on these matters.

A tax agent provides transparency to the individual (or household) income and tax position whilst highlighting tax minimisation strategies, deduction advice and investment opportunities every year. They are the most qualified to provide advice on Employee Share Schemes and Restricted Share Units. And for employees on a working visa, having a tax partner directs them to the qualified support they need.

What should a company consider when assessing financial service providers for their employee wellbeing programmes? 

When considering partnerships with financial service providers, employers should consider what value can be offered to their employees, and the ease of integration between the service platform and existing technology. Employees are looking for easy digital access to personalised advice from professional specialists, which is precisely what we deliver at YOUtax.

In addition to YOUtax, I would also recommend the digital financial planning tool MAP MY PLAN. It is a great platform which can be used to gain a holistic view of your finances, and there is no financial planner trying to sell you a product. Similar products that include budgeting features are the YOUtax Wealth Hub, which contains your personal profit and loss and balance sheet, and can include valuations of your car and property.

Superannuation partners and private health insurance seem to be the standard, and reviewing these regularly is always recommended.

How is a tax accountant different from a financial planner? 

Financial planners specialise in providing advice relating to investment and savings strategies, to achieve financial goals and create wealth for retirement. They help you decide on the products that you choose to invest in, whether it be managed funds, shares, property etc. An accountant is an expert in tax legislation who can prepare and lodge your tax return in compliance with the law, and offer advice relating to opportunities to minimise your tax.

Most Australians would see an accountant annually, whereas financial planning is often called upon during big life transitions such as planning for retirement or investing an inheritance.

Accountants take care of the micro strategies that determine annual tax compliance and financial transparency, whereas financial planners look at the macro strategies to produce wealth over time.