The group of Australians being smashed by the biggest tax rise in the WORLD - but here's how you can beat the taxman

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Working Australians have been smashed by the biggest tax rises in the world's wealthiest countries after Labor allowed key cost of living tax cuts to expire.

Australia's average tax rate increased by 7.6 per cent in 2023, and was the biggest rise among all 38 nations in the Organisation for Economic Co-operation and Development (OECD).

The hike in taxes saw the average, full-time Australian childless taxpayer, earning $99,565, hand over $24,792 to the government in income taxes - or a quarter of their wages.

Personal income taxes now make up 45 per cent of Australian government revenue, with record-high immigration producing more working-age people to tax.

The OECD found Australians are now overall the fourth-highest taxed population among all its members. 

Working Australians have been smashed with the rich world's biggest tax increases following the end of relief for low and middle-income earners on Labor's watch (pictured is Brisbane's Queen Street Mall)

The hefty tax burden followed the end of the low and middle-income tax offset in June 2022 that gave relief of up to $1,500 to 10million workers earning up to $126,000.

OECD secretary-general Mathias Cormann was Liberal finance minister in Malcolm Turnbull's government when the low and middle-income tax offset debuted in 2018. 

In his final Budget, former Liberal treasurer Josh Frydenberg in March 2022 announced a $420 one-off cost of living relief on top of the existing $1,080 low and middle-income tax offset. 

But the overall $1,500 offset expired in June 2022, shortly after former prime minister Scott Morrison lost the election to Labor leader Anthony Albanese.

Treasurer Jim Chalmers declined to extend the Coalition's offset that was due to expire over inflation fears - and this was before the consumer price index hit a 32 year high of 7.8 per cent.

Australia's 7.6 per cent rise in the personal income tax burden in 2023 was much higher than New Zealand's 4.5 per cent under former Labour prime minister Jacinda Ardern and was even higher than Luxembourg's 5 per cent increase. 

The Australian government is particularly reliant on taxing workers with new Australian Bureau of Statistics data this week revealing $278.39billion was collected from personal income taxes.

This made up 45 per cent of the commonwealth's $618.227billion in revenue for 2022-23. 

The Paris-based OECD on Thursday night revealed Australia's average tax rate increased by 7.6 per cent in 2023 during a cost of living crisis (pictured is Gold Coast plasterer Suraya Kastelein)

With 24.9 per cent of gross salaries going towards incomes taxes, Australia was only behind Denmark (36 per cent), Iceland (27.3 per cent) and Belgium (26 per cent), and well ahead of the OECD average of just 15.4 per cent.

The revised stage three tax cuts in July 2024 will bring the first meaningful tax relief in two years for struggling Australians.

But until then, tax agent H&R Block has revealed the little known items that can be claimed back on tax, from a dog to a caravan.

Claiming a dog or caravan on tax 

Mark Chapman, H&R Block's director of tax communications, said a farmer using a dog to herd sheep and a business needing security could claim the animal as a tax deduction.

'In very limited circumstances, you might be able to claim a deduction for your dog, both for the cost of acquiring the animal,' he told Daily Mail Australia.

'The cost is depreciated over several years and for the costs of keeping it - food, vet bills.

'The two most common scenarios where the cost of a dog is tax deductible are farming, where an animal might be used to round up sheep, for instance and security, where the cost of a guard dog to patrol business premises might be allowable.' 

Someone who travelled extensively for work could also claim a caravan if it was used as accommodation during work trips.

Mark Chapman, H&R Block's director of tax communications, said a farmer using a dog to herd sheep and a business needing security could claim the animal as a tax deduction (pictured is a kelpie at work at Langawirra station north of Broken Hill)

'One taxpayer who travelled extensively for work decided to buy a caravan to provide overnight accommodation whilst working away, rather than paying for a hotel room every night,' Mr Chapman said.

'That was deductible.'

But those claiming a caravan needed to make sure holidays weren't claimed. 

'You'll need to apportion the deduction between work use and private use,' he said.