There could be a few reasons your return refund doesn't look as robust as in past years, according to the ATO:
Your refund could have been offset against other debt you have
There could be a difference between the details in your tax return and the pre-fill information data
Your income and deductions are different from last year.
But the most likely culprit for a low refund — or even a tax bill — is the discontinuation of the low and middle income tax offset (LMITO).
Introduced in 2018/19 Budget, the LMITO gave those earning between $37,000 and $126,000 a tax benefit of up to $1,500 depending on how much they earned.
Those earning between $40,001 and $90,000 got the full $1500 offset.
The ATO reported that more than 10 million people claimed the LMITO in the 20/21 financial year.
Well, the good times are over as the LMITO ran out on 30 June 2022.
So, if you have a discrepancy of about $1,500 in your 22/23 return refund, the missing LMITO could be the cause.
How to contact us
We’re available to assist you with tax planning including tax deductions: