Do Gen Z and Millennials actually want more financial knowledge on tax? Research suggests they do

According to ubank’s latest research, which surveyed 1,311 adults between the ages of 18 to 43, an overwhelming majority (86 per cent) said they would like or need to improve their financial knowledge. Of those, one third (33 per cent) said tax planning and tax optimisation was an area they would like to understand more about to better manage their own finances.

Respondents specifically reported a desire to improve their financial knowledge on investment strategies and tips (40 per cent), saving strategies and tips (36 per cent), and buying/investing in property (35 per cent).

Ubank's Chief Product and Growth Officer, Andrew Morrison, said: “Similar to what's reflected in the research, we're seeing that our Gen Z and Millennial customers are actively thinking about and engaging with their finances to gain control of their money and they're optimistic about their savings and budgeting abilities.

"For example, when we look at our Save accounts data, since May, Rainy Day was the number one savings target (42 per cent), followed Holidays (31 per cent), and Home (27 per cent), which shows despite the current cost of living pressures and economic uncertainty our customers still have bigger financial goals and targets in mind.

"That’s why EOFY and tax time is the perfect time to review and set financial goals for the financial year ahead, including how you might use the money you get back from tax,” he said.

Andrew Morrison’s top tips this tax time.

Use your tax refund to smash your money goals:

• For those that do get a solid tax refund, it's a good idea to drop it into one of Australia's highest interest savings accounts while you decide what to do with it. Ubank just announced a new savings deposit rate of up to 5.50 % p.a. effective from 1 July, which is one of the most competitive in market.
• Start or replenish the emergency fund knowing there’s a buffer or some money set aside for a rainy day.
• Sneak in a few additional home loan payments to own your home faster and reduce monthly interest charges.
• Pay off outstanding debts like student loans, personal loans or credit cards.
• For those eyeing off some major equipment like tools or a new laptop, now is a good time to purchase them. And if they’re work-related purchases, it could lead to a bigger return next year. Make sure to check with your tax agent on what you can claim back.

For those lucky enough to have a trip to Europe planned or money to spend on experiences that bring happiness, here’s some inspiration:

• Set a holiday goal in your banking app and use a savings target to get there. At ubank you can open up to 10 Save accounts and set savings targets on any of them. All you have to do is record how much you need and by when to get a plan to help you reach that goal. And when you’re away, ubank don’t charge for overseas ATM withdrawals and payments through our Spend account (although you should check whether the ATM operator or merchant charges an ATM or foreign exchange fee on their end).
• Invest in yourself by taking that course or workshop you’ve been eyeing off.
• Give something back to the community by donating. Plus, these donations could be tax deductible. Make sure to check when you can claim for gifts or donations made to deductible gift recipients and keep the records.
• Buy those items that you’ve been eyeing off. Ubank has a suite of new money management features including Spend, Bills and Save accounts for easy bucketing. So for those that have some money in their Spend accounts and want to splurge on something that makes them happy, go for it!

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Keep your accounts safe and savvy this tax time

Although ubank’s latest research found 37 per cent of respondents said they felt confident they could spot a tax related scam, data shows the ATO received 22,000 reports of scams impersonating the government department in the past 12 months. Reports increased 34 per cent between March and April this year.

With more than 1,800 impersonation scams reported to the ATO each month, ubank is urging Australians young and old to still pause before making that transfer and remain vigilant for tax related scams.

Mr Morrison said: “There’s often a rise in scammers impersonating the ATO around the end of the financial year. Popular scams include telling you that you’re entitled to a tax refund, or you owe the ATO debt.

“Our research indicates that whilst there might be some level of confidence amongst Gen Z and Millennials in spotting scams, 66 per cent of young adults are exposed to potential scam attempts at least once a week, so it’s important to stay scam savvy.

"Remember, if you get a message or phone call from someone claiming to be the ATO, or any organisation including your bank, and they ask for your financial info, don’t engage, instead call the organisation back yourself to check. And remember to never click on links in unexpected messages,” he said.

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About ubank

Ubank is a daily money companion, bringing together all customers' finances in one place. With one app for all customers’ money needs, ubank is empowering a new generation of Australians to be more successful with their money, offering proactive product features and insights designed to help Australians get ahead.

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About the research

All figures, unless otherwise stated, are from YouGov. Total sample size was 1311 adults. Fieldwork was undertaken between 31 May – 6 June 2024. The survey was carried out online. The figures have been weighted and are representative of all Australian Gen Z and Millennials (aged 18 to 43).

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