Expect a Lower Tax Refund for 2023 with the ending of the Low and Middle-Income Tax Offset
The Low and Middle-Income Tax Offset (LMITO) introduced by the former Liberal government ended on 30 June 2022. So far Labor has indicated that this will not be extended to 2023.
In 2022 the LMITO provided eligible taxpayers earning up to $126,000 a tax offset of up to $1,500 once their tax returns were lodged. With LMITO removed, many middle income earners will have either a lower refund or more tax to pay for 2023. This will exacerbate the cost of living pressures for millions of Australians. It remains to be seen whether the Treasurer will include any cost of living relief in the next Federal Budget..??