Every Aussie BBQ has one. The mate with the loud voice, a sausage in one hand and a beer in the other, serving up their latest piece of “tax wisdom.” One of the most popular? The claim that you don’t need to pay tax if you earn under 75,000. This common belief is a myth.
It sounds like a sweet deal, everyone nods along, and suddenly you’ve got a crowd convinced they’ve just uncovered a tax hack.
Here’s the thing. It’s completely false, and believing it could cost you big.
The myth that just won’t die
The 75k myth has been floating around for years and somehow keeps finding its way into conversations. Maybe it’s because it sounds neat and round, or maybe it’s because people mix up tax free thresholds, offsets and small business concessions. Either way, the truth is a lot less exciting.
The real tax free threshold in Australia is 18,200. That’s it. Once you earn a dollar more, the tax man wants his share. So if you’re pulling in 50,000, 60,000 or even 74,999, you’re still paying tax.
The sting in the tail
Here’s where the danger really shows. If you build your whole year around the idea that you don’t pay tax under 75k, you won’t be setting any money aside. When tax time comes, you’ll be staring at a bill you’re not ready for. On top of that, penalties and interest can stack up if you’ve been underpaying. What looked like a tax saving at the BBQ suddenly turns into a very expensive mistake.
It’s not just the money either. Stress levels skyrocket when you’re hit with a bill you didn’t plan for. Cash flow takes a hit, family life feels the strain, and suddenly your business decisions are being made from panic instead of confidence.
Why BBQ tax advice is a recipe for trouble
The problem with BBQ tax myths is they’re passed around with confidence but zero context. Your mate with the tongs isn’t going to be there when the ATO sends you a letter. They won’t sit with you at midnight when you’re scrambling to figure out why you owe thousands. And they definitely won’t pay your penalties for you.
The truth is, the rules are clear but not always simple. That’s why accountants exist. Not to make life harder, but to translate all the jargon into something you can actually use.
👉Wanna debunk more BBQ business myth? Check out The Quirky Pineapple’s Business Myths Debunked
The ripple effect on your life
It is not just the money either. Stress levels skyrocket when you are hit with a bill you did not plan for. Cash flow takes a hit, family life feels the strain, and suddenly your business decisions are being made from panic instead of confidence.
And let us be real, no one does their best business planning when they are lying awake at night worrying about the ATO.
👉Learn how the business myths affect an entrepreneur’s thinking. Explore Medium’s The Profound Impact of Myths on Businesses: Unravelling the Intricate Connections
Where to get real advice instead
The truth is, the rules are clear but not always simple. That is why accountants exist. Not to make life harder, but to translate all the jargon into something you can actually use. When you get advice tailored to your situation, you can plan ahead and stay in control.
How BJT Business Advisors keep the smoke out of your eyes
At BJT Business Advisors, we hear these myths every week. Our job is to clear the air. We explain things in plain English, help you stay compliant, and give you back your time so you can focus on family, clients and growth.
We do not deal in rumours or BBQ tax tips. We deal in clarity, confidence and numbers that actually make sense. When you have a team of accountants and advisors backing you, there is no need to second guess or rely on dodgy advice.
Book a free assessment with our team and we will help you cut through the confusion, manage cash flow with confidence, and plan for long term success.
