Good and Bad news, Get up to $1,500 extra on your tax return

The Federal Budget 2022 has introduced a new tax offset.

Money will begin hitting Australian bank account within days but this short-term gain from the Federal Budget will have a long-term pain.

Millions of Australians will receive a one-off $1,500 tax cut where it consists of $1,080 from Low Income Middle Tax Offset ("LMITO") and $420 from a One-off Tax Offset ("OTO").

Below is the income range that LMITO entitles, if you earned:

• $37,000 or less - You will receive $675

• $37,001 to $48,000 - You will receive between $675 and $1,500

• $48,001 to $90,000 - You will receive $1,500

• $90,001 to $126,000 - You will receive $1,500 less 3 cents for every dollar

• more than $126,001 - You will not be entitled to LMITO (Nil)

Next year in 2023 financial year, however, the LMITO will be abolished by the Federal Government. As such, you will be having lesser tax refund by $1,500 than what you are currently receiving in 2022 financial year (assuming that you have the same taxable income and tax withheld).

Be prepared with your finances for the 2023 financial year.

It will not be an easy year but we hope you have a meaningful year ahead.

Happy 2023 financial year!