TAX returns this year have plummeted by $1500, after a low to middle income tax offset has been scrapped, which was first implemented in the 2019/2020 financial year.
People in the tax bracket were receiving around $1500 to $2000 for their tax returns in the past few years with the tax offset, and are now experiencing up to a 70 per cent decrease in their returns this year.
Director of taxation services at Solution Driven, Brad McGowan, said although people can’t claim for things which don’t apply to them, he suggested some claims people may forget about for this financial year’s tax return.
“The main thing people may forget to claim this year is their home office, but the ATO is changing the laws on that which makes it more complicated to claim on tax now,” he said.
“People also forget to claim washing their clothes on tax too.”
With the cost of living crisis, Brad highlighted those in the tax bracket who own a home, have received an even worse tax return this year.
“If you own a property, your interest has pretty much doubled and food prices etc. and incomes have only gone up a very low percentage, and now this tax offset has been removed too, so it’s a big hit to those people.”