In our recent article published on 19 September 2023, we delved into the intricacies surrounding tax refunds and forewarned our clients about potential reductions.
Media outlets have been quick to pick up on this noteworthy development, shedding light on its impact on taxpayers nationwide.
This is an extract from a recent article from Accountants Daily:
“Tax refunds have plunged by an average of more than $580 this year for the millions who filed their returns by the October 31 deadline, ATO figures reveal.
Data supplied to us revealed 10.5 million taxpayers put in returns by last month’s date, up from 10.2 million last year, with half of those self-prepared and the other half done by tax agents.
But a combination of changes this year, from the end of the low and middle income tax offset – the so-called “LMITO” – to revised rules about work-from-home expenses have taken a big chunk out of refunds.
The LMITO had provided eligible individuals earning up to $126,000 a tax offset of up to $1,500 when they lodged their returns while the ATO made strict record-keeping a condition of WFH claims from March in a move that blindsided many taxpayers.
This year’s 10.5 million taxpayers had been paid total refunds of $18.2 billion, the ATO disclosed, equivalent to an average of $1,733 each.
But last year’s 10.2 million taxpayers received a whopping $23.6 billion, or an average of $2,314 each.
The difference adds up to an average of $581 for every taxpayer.”