With interest rates still on the rise, the price of fuel heading for record highs, electricity and gas prices skyrocketing and the cost of basic foods going up, many constituents in the Forde Electorate will be relying on their tax refund this year.
But sadly, most of us will be in for some disappoint when we eventually lodge our returns.
Why? Because the Labor Government has made a major change to the tax system which will slap an extreme discount on the size of your refund….
The treasurer and the prime minister have abolished the low and middle income tax offset from the new financial year, which was delivering a tax break of up to $1500 for people earning up to $126,000.
Many taxpayers won’t cotton on to that fact until they come to lodge, and they notice their refund has shrunk.
The LMITO was around for years and provided a tax offset if you were a low- or middle-income taxpayer.
The amount of the offset varied depending on your income; if you earned less than $37,000, you received $675 and if your income was between $37,001 and $48,000, the tax offset increased steadily to $1500.
Let’s be honest, the Federal Labor Government are doing this for one reason, and one reason only and this is to make up for what they spent during Covid.
It’s simple – Labor cannot manage your money, let alone the economy.
After spending more than they brought in for the past 3 years, our national debt is now higher than it has ever been.
The Australian Taxation Office also reported that more than 10 million people claimed the LMITO during last financial year.
So, if you’ve done your tax for 2023 or you are about to lodge, brace yourself – you are in for a rude awakening.
I hope I am the bearer of better news in 2024.
