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Why is the tax refund this year less than the previous year?

  • Aldo Yunus
  • Jun 16, 2023
  • 1 min read

Updated: Jun 22, 2023

The Federal Budget 2023 has ABOLISHED the $1,500 Low Middle Income Tax Offset ("LMITO").


This will be the most significant factor that reduced your tax refund this year compared to the previous year.


However, a $700 Low-Income Tax Offset ("LITO") is still available for individuals with earnings as follows:


  • $37,500 or less - You will receive $700

  • $37,501 to $45,000 - You will receive $700 less 5cents for every $1 above $37,500

  • $45,001 to $66,666 - You will receive $325 less 1.5cents for every $1 above $45,000

  • more than $66,667 - You will not be entitled to LITO (Nil)


Be prepared with your finances for the 2024 financial year.


We hope you have a great year ahead.


Happy 2024 financial year!


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