It’s that time of the year again! Tax time is often a time of relief for households as they receive a little cash injection into households.
But this year, you might notice your return is smaller than years gone by. So no last minute holidays, shopping sprees or even just simple things like, you know, using electricity.
But thanks to the Government, your tax return might be a lot smaller this year or you might even find yourself owing money.
For the last few years, households have been benefiting from low and middle-income tax offset (LITMO) for people earning between $40,001 and $126,000, which would see you get an automatic $1,500 added to your return.
The LITMO was discontinued by the Government in June this year, which will leave a lot of people and households short.
There are a few other reasons that your tax return may be smaller this year, which include there being a difference between your pre-filled data, your refund has been offset against your debts and even something as simple as your earnings are different.
If you haven’t gotten around to doing your taxes yet, don’t stress because the ATO says it’s better to wait until late July, which allows employers and banks to submit their data.
