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August 16, 2023Don’t lodge your 2023 tax return too early
You may lodge your 2023 tax return at any time after 30 June 2023.
However, if you lodge too early, especially during July, there’s a good chance that its details will be wrong.
That’s because most of the information from employers, banks, government agencies and health funds will not be automatically loaded (aka pre-filled) into your tax return at the Australian Tax Office until late July.
ATO Assistant Commissioner, Tim Loh, explains that “by waiting a few more weeks….you’ll save yourself a lot of work by getting it right the first time….once the information we collect is available, all you need to do is check and add anything that’s missing”.
You can learn more about this subject by reading the ATO article “Ensuring your tax return isn’t half-baked“.
Your tax refund may be lower in 2023
Even if your income and tax deductions haven’t changed much in recent years, it’s likely your 2023 tax refund won’t be large as you have come to expect.
That could be because your refund has been offset by a tax debt or you’ve made a mistake in your return. However, it’s much more likely to be because of the discontinuance of the Low and Middle Income Tax Offset (LMITO).
The LMITO was introduced in the 2018/2019 Federal Budget. For example, those earning between $40,001 and $90,000 qualified for a full $1500 offset (others qualified for a lesser amount, depending on their income levels).
Unfortunately, LMITO expired on 30 June, 2022. So if you notice that your tax refund is lower in 2023, the reason is likely to be the cessation of LMITO.
If you’d like to know more, visit the ATO website.
Need more information?
For additional tips and useful information when completing your 2023 tax returns, read our annual Income Tax Top Tips article or visit the Income Tax page on our website.
