Australians are currently in the grip of a cost-of-living crisis which is affecting nearly everyone. Now that the 2023 financial year is over, many are looking to their tax refunds to help them get by. But upon lodgement, it’s a bit shorter than last year – and nothing changed. Why?!
Even though we’ll continue to make sure you claim as much as you are allowed, refunds are down this year for one simple reason – the removal of the low and middle income earner tax offsets.
For certain tax payers between $37,000 and $126,000 of taxable income, this was an extra offset that helped reduce your tax payable or increased your tax refund. It was claimed at the end of the year instead of in your regular pay packet, so tax refunds have been (largely) quite a nice surprise from 2019 to 2022.
Along with restrictions to the work-from-home deduction rules, we are certainly finding that our clients in general have received lower refunds. Be assured we will always work to get you the best result!
