Low and Middle Income Tax Offset

As you may have heard through various news channels and articles, a lot of us are due to feel a sharp increase in our taxes which will result in lower tax returns in 2023. Why? Because the generous low and middle income tax offset (LMITO) of up to $1,500 has expired and will not be available for the 2023 financial year.

Taxpayers earning between $37,000 and $126,000 for the 2021-22 financial year were able to benefit from this offset for an amount of up to $1,500. However, this offset is no longer available for the 2023 financial year. Hence, if you had been receiving LMITO in the past, it can be expected that your upcoming 2022/23 tax refund will be less than the previous year (and for those who are expecting to have tax payable, it can be expected that the upcoming 2022/23 tax payable will be slightly higher than the previous year).