Around this time of the year, many Australians are looking forward to some more money in their pockets from EOFY tax refunds.
However, this year you may notice a difference. Perhaps you are not getting the usual $1000 – $2000 you were expecting back from your return? One reason for this could be the removal of the Low and Middle Income Tax Offset (LMITO).
Brought in by the government in 2018/19, the LMITO gave those earning between $37,000 and $126,000 a tax benefit of around $1000 – $1,500 depending on their earnings. The ATO reported that more than 10 million people claimed the off-set.
However, all good things must come to an end. The ATO stopped the program at the end of the 2022 financial year. However, there is still a tax off-set for those earning less than $66,667. This could provide a maximum off-set of around $700 for those who are eligible. If you have any questions about this topic, please contact our office.