The average Western Australian tax return is expected to be the smallest in the country this financial year - nearly $700 less than the national average refund of $2,317, Bankwest research says.
The latest Bankwest Financial Indicator Series report, the third annual Taxing Time survey, indicated the average WA tax return would be $1,627.
New South Wales taxpayers are expected to receive back nearly double that, with NSW average tax returns forecast by the report to be $3,225.
The report showed average tax returns would be $2,143 in South Australia; $1,940 in Victoria; and $1,835 in Queensland.
As a whole, 81 per cent of taxpayers that responded to the survey expect to receive a refund this financial year, while six per cent expect a bill and 13 per cent expect a break-even result.
Nearly half (42 per cent) of the respondents said they would use tax returns to reduce debts this financial year, while 31 per cent said they would save their refunds, the report said.
Also, one in seven taxpayers surveyed said they would spend their return on essential living expenses, and 18 per cent said they would spend their refund on "something exciting".
Bankwest retail chief executive Vittoria Shortt said the results indicated Western Australians were using tax time as a catalyst to get their finances in order.
"Taxpayers are becoming more prudent with their returns and subsequently there's an encouraging trend developing with the number of people deciding to save their tax refund increasing for the second year running," Ms Shortt said.
"We have also seen marginal growth in the number of taxpayers who anticipate spending their refund on something exciting or on living expenses."
