We are often asked by clients why they don’t get a larger tax refund at the end of the year when we lodge their return. Some reasons why your tax refund may not be as high as previous years, or in the future:
1. You didn’t work during the year, or you worked far less which means you didn’t actually pay any tax or very minimal of which to receive a refund
2. You have a HELP (formerly HECS) debt and you income is now above the threshold meaning you are required to make contributions to repay the debt
3. Your income from investments such as bank interest or net rental property income has increased
4. You have less expenses to claim as a tax deduction to reduce your taxable income
5. You have started a second job and indicated on your Tax File Number Declaration that you wish to claim the Tax Free Threshold, meaning you have claimed this twice now
6. You don’t have adequate Private Health Insurance cover and are now liable for Medicare Levy Surcharge
These are just a few of the common reasons we see individual tax refunds changing from year to year. If you are ever concerned you should seek advice from your Tax Professional.
