Tax time is upon us again, and with the 2023/24 financial year coming to a close, East Gippslanders are ready to file their returns.
While the core process remains similar, there are a few key things to keep in mind this year to ensure a smooth and potentially rewarding tax return experience.
The biggest change from last year is the absence of the Low and Middle Income Tax Offset (LMITO), which ended in June 2022. This offset previously provided a significant tax benefit for many Australians. Its removal can result in a smaller tax refund or even a tax bill for some individuals.
However, there’s a silver lining. The stage three tax cuts continue to be implemented, bringing some relief. Taxpayers earning between $18,201 and $45,000 will see a reduced tax rate of 16 per cent. Additionally, the threshold for the 32.5 per cent tax bracket has increased to $135,000. These changes can offset the absence of the LMITO for some taxpayers.
For those continuing to work remotely, the revised fixed rate method for claiming work-from-home expenses remains in place. This allows you to claim 67 cents per hour worked from home, simplifying the deduction process.
As always, good record keeping is crucial. Gather receipts, invoices, and group certificates throughout the year to streamline the filing process. If navigating the changes or maximising deductions seems daunting, consider consulting a registered tax agent for personalised advice.
By staying informed about the key changes and utilising available resources, Australians can approach this tax return season with confidence and potentially see a positive outcome.
IMAGE: Have your receipts ready for tax time. (PS)
