Tax return hacks Australia: Fury over LMITO tax offset axing
Hard-working Aussies who have already filed their tax returns have been reeling after receiving meager returns – or even demands to pay – from the ATO.
Workers have been warned to expect lower-than-expected returns this fiscal year after federal treasurer Jim Chalmers abolished the low-and-middle income tax offset (LMITO).
The measure – always intended to be temporary – has provided tax cuts of up to $1,500 for up to 10 million Australians over the past four years.
Fighting Aussies are now finding out the hard way how heavily they relied on the offset, according to videos flooding social media.
In one clip, furious Melbourne woman Josephine Sunshine accused the ATO of being a scam and having a problem with people working full time after she received her tax return.
Josephine Sunshine was expecting a tax return, but instead was told she owed taxes
“I don’t understand how you give me so much tax and then tell me I still owe you money,” she bellowed.
‘But then people who are on Centrelink or barely working, who have taxed the minimum, will get all their money back.
“We should get half our money back. Okay, half is kind of annoying, but we should be getting at least $3,000 to $2,000, not a flickering $500, $200, $300, what’s that?’
“In return, we should get our money back for providing the goddamn country.”
Meanwhile, a ‘frickin revved up’ employee, Clare Vertannes, let loose on the federal government in a TikTok diatribe, describing her tax bill as a slap in the face
‘What the hell is going on? Really, does the government hate us?’ shouted the Sydneysider.
“I’m on my leash. I just moved to Sydney, I can’t believe the rent crunch is happening, not just here, but across the country now.’
“I’m a middle-class lady, let’s just say that. All these middle-class, low-income people like myself are now being hit with all this extra tax.”
Clare Vertannes unleashed herself on the federal government after receiving a bill from the ATO
Ms Vertannes added that she has already paid $20,000 in taxes.
‘I have nothing else to give. Do you want my kidney afterwards?’ she continued.
“I’m sure thousands of other people are in the same situation as me.”
Renya Odisho, a Melbourne woman, also expected a tax return, but instead owes a whopping $6322 to the ATO.
“Someone’s looking forward to it,” she captioned her TikTok video.
Bunnings associate Tash Griffin urged the government to reinstate the tax deduction after receiving a measly refund of $191.72, a fraction of the $3,000 she got back last year.
Aussies are now finding out the hard way how much they relied heavily on the LMITO
The temporary LMITO was introduced in the 2018-2019 budget by then-treasurer Josh Frydenberg.
It was extended during the pandemic and then increased by the Morrison administration during its March 2022 pre-election budget for one year.
That increase meant that Australians earning $126,000 a year or less would receive a tax cut of up to $1,500 for the 2021-2022 financial year, depending on how much they earned.
The biggest benefit was reserved for those who earned between $48,000 and $90,000.
The LMITO – also known as the “lamington” – ended July 1 when Treasurer Jim Chalmers chose not to extend the measure any further.
Bunnings employee Tash Griffin is upset about her meager tax return after receiving $3,000 last year