Aussies rage at low tax returns, owing money to the ATO

Furious Aussies are claiming they have been “robbed”, with many left horrified after lodging their tax returns this year.

If you have been scrolling on social media this week, you have probably come across at least one person complaining about their tax return.

Aussies across the country are fired up, with thousands discovering their return is a lot lower than expected or even having the unpleasant realisation that they actually owe the ATO money.

The low-and-middle income tax offset (LMITO) has been scrapped this year, with a lot of people now confronted with the reality of what this actually means.

Introduced as a temporary measure in the 2018/19 federal budget, the offset meant those earning between $37,000 and $126,000 were eligible for a tax cut of up $1500.

Now that it has expired, many Aussies are realising just how much they relied on that extra boost come tax time – and they aren’t happy.

Furious Aussies have taken to social media to vent their frustrations, with many posting screenshots of their refunds – or what they owe – after completing their tax return.

Melbourne woman, who goes by Josephine Sunshine on TikTok, was one of the many Aussies who were shocked to discover they owe the ATO money.

@mssunshiinee

This angle not flattering but listen to my beef #ato#australiantaxationoffice whats up?

♬ original sound - Josephine Sunshine

In a video expressing her frustration, the young woman said she was “fully convinced that the ATO has a problem with people who work full time”.

“Because I don’t understand how you tax me so much and then you are telling me that I still owe you money,” she said.

“But then people who are on fricking Centrelink or barely working, who got taxed the minimum, get back all their money.”

Josephine claimed what “should be happening” is everyone who worked to help pay for Australia’s welfare system through their taxes should get a “thank you” come tax time.

“We should get half our money back. OK, half is a bit of a drag, but we should get at least $3000 to $2000, not fricking $500, $200, $300, what is that?” she said.

“As a thank you we should get our money back for providing for the fricking country.”

The Melbourne woman claimed getting your tax return used to be “exciting” but now she doesn’t “want to look at it or even complete it”.

Aussies have taken to social media to share what they owe to the ATO. Picture: Courtney Mahon /TikTok

One woman revealed she owed more than $6000 after doing her tax return. Picture: Renya Odisho/TikTok

Josephine is far from the only person feeling this way, with Canberra woman Courtney Mahon revealing her shock at owing the ATO $975.75 after completing her tax return.

“Anyone else getting robbed this year?” she asked her TikTok followers.

Melbourne woman Renya Odisho was also horrified after being told she owed a whopping $6322 to the ATO, writing: “Somebody make it make sense”.

Clare Vertannes is another Aussie who was “revved up” by the realisation that she owed money after completing her tax return.

“Does it government hate us? Does Australia hate us? I just want to know, asking for a friend,” she said in a recent TikTok video.

She asked her followers if anyone else had logged in to complete their return this year thinking they would be getting “a little something something” back, only to be “slapped in the f**king face”.

“I think I am just at my tether. I just moved to Sydney, I cannot believe the rental crisis going, not only here, but around the country right now,” she said.

“I am a very middle class lady, lets just say that. All these middle class, low income earners like myself are now being slapped with all this extra tax.”

Sydney woman Clare was horrified after realising she owed money to the ATO. Picture: Clare Vertannes/TikTok

She noted there would be thousands of Aussies in the same boat as her. Picture: Clare Vertannes/TikTok

Clare claimed she had already paid $20,000 in tax throughout the financial year but was now being told she owed more.

“I have got nothing else to give. Do you want my kidney next?” she said. “I am sure thousands of other people are in the same situation as me.”

The rising cost of livings means many Aussies are increasingly relying on their tax returns to make ends meet.

A recent Finder survey of more than 1000 Aussies saw one in three people reveal this year’s tax refund is very important or critical to their financial health.

The research found 15 per cent of Australians will be using their refund to pay for household bills, five per cent will be putting it towards their mortgage, and 4 per cent will use it to pay off existing credit card debt.

Alison Banney, money expert at Finder, said the current economic situation meant the reliance on tax returns has never been higher.

“Whether it’s to pay back debt, boost their savings, or help with everyday expenses, millions of Australians are relying on a refund,” she said.

“However, with the removal of the Low and Middle-Income Tax Offset (LMITO) this year, lots of Australians will likely get less money back in their tax return this year compared to the last two years.”

Ms Banney urged workers to make sure they are claiming for all eligible deductions, noting many will be able to claim working from home expenses.

“The ATO has introduced a revised fixed rate method of 67 cents per hour that you worked from home – for example, I’ve worked from home full time this past year. After removing weekends and 9 public holidays, I’ve spent 251 days working from home,” she said.

“At 8 hours a day, that’s 2,008 hours. I can claim 67 cents for each of these hours, which works out to be a deduction of $1345.36.”

Originally published as Aussies rage at low tax returns, owing money to the ATO