Why is my tax refund so small?

HomeInsights

Why is my tax refund so small?


The tax refund many Australians expect has dramatically reduced. We show you why.


There is a psychology to tax refunds that successive Governments have been reticent to tamper with. As a nation, Australia relies heavily on personal and corporate income tax, with personal income tax including taxes on capital gains representing 40% of revenue compared to the OECD average of 24%. And, for the amount we pay, we expect a reward.


As part of the previous Government’s efforts to flatten out the progressive individual income tax system, a time-limited low and middle income tax offset was introduced. The lifespan of the offset was extended twice, partly as a stimulus measure in response to COVID-19. The offset delivered up to $1,080 from 2018-19 to 2020-21, and up to $1,500 in 2021-22 for those earning up to $126,000. This was a significant boost for many people each tax time and bolstered the tax returns of millions of Australians.




For many, the end of this offset has meant that their
tax refund has reduced dramatically compared to
previous years.




Let's Talk.

We want our people to be the best they can be.


CONTACT US CONTACT US



2026 EXPRESSIONS OF INTEREST - Skybots: RPA & A.I - 2-Days Training Course

After overwhelming demand and sold-out sessions in Perth, Brisbane, Sydney, Melbourne and Mornington in 2025, we’re inviting expressions of interest for 2026. If you missed out earlier or are ready to dive into hands-on automation training, we’re considering additional sessions in various locations across Australia in 2026.


UNDER THE HOOD: Accessibility and Inclusion with MP Shire Business

Excellence in Inclusivity and Accessibility recognises businesses for their leadership in creating welcoming, inclusive spaces and ensuring accessibility for all. In this episode, the award-winnings share how inclusion isn’t just the right thing to do - it’s a smart business move. 


UNDER THE HOOD: Connected Communities - The Small Business Advantage

The Local Community Connection Award recognises businesses with a commitment to strengthening the Mornington Peninsula community through networks, partnerships and social contributions. This episode features the award-winners as they share practical strategies, proven approaches, and inspiring stories that show how community connection isn’t just good for people - it’s sound business practice. 


SKYBOTS: RPA & AI Training Course - Melbourne CBD

LIVE 2-DAY COURSE - MELBOURNE CBD
15 & 16 December 2025

Join SkyBots’ 2-day Workshop with automation expert Daryl Aw to revolutionise your workflow using Power Automate, UiPath, VBA, and cutting-edge AI tools like Copilot and ChatGPT. Tailored for accounting and finance professionals, bookkeepers and small business owners, this hands-on training will teach you to automate repetitive tasks, generate and optimise VBA scripts, and deploy robust automation solutions independently.


SKYBOTS: RPA & AI Training Course - Sydney CBD

LIVE 2-DAY COURSE - SYDNEY
11 & 12 December 2025

Join SkyBots’ 2-day Workshop with automation expert Daryl Aw to revolutionise your workflow using Power Automate, UiPath, VBA, and cutting-edge AI tools like Copilot and ChatGPT. Tailored for accounting and finance professionals, bookkeepers and small business owners, this hands-on training will teach you to automate repetitive tasks, generate and optimise VBA scripts, and deploy robust automation solutions independently.


Living Longer: How to future-proof your retirement income

With more Australians living well into their 80s and beyond, managing your longevity risk is more important than ever. Learn how income products like annuities can support your lifestyle for the long haul – no matter how long your retirement lasts.

Related News

Yesterday

UNDER THE HOOD: Accessibility and Inclusion with MP Shire Business

Excellence in Inclusivity and Accessibility recognises businesses for their leadership in creating welcoming, inclusive spaces and ensuring accessibility for all. In this episode, the award-winnings share how inclusion isn’t just the right thing to do - it’s a smart business move. 


READ MORE READ MORE
Yesterday

UNDER THE HOOD: Connected Communities - The Small Business Advantage

The Local Community Connection Award recognises businesses with a commitment to strengthening the Mornington Peninsula community through networks, partnerships and social contributions. This episode features the award-winners as they share practical strategies, proven approaches, and inspiring stories that show how community connection isn’t just good for people - it’s sound business practice. 


READ MORE READ MORE
10 Dec

SMART Life - Issue 23 - Summer 2026

Understanding the 3 stages of retirement and what they mean for your money, and how to future proof your retirement income.


READ MORE READ MORE