Why Is My Tax Refund So Low?

A low tax refund can be disappointing, but there are many reasons it might happen. Common causes include not paying enough tax on side income, incorrect withholding from multiple jobs, losing eligibility for certain tax credits, or having debts that the ATO uses your refund to cover. Even small mistakes on your tax return or missing deductions can reduce your refund.

To improve your outcome next time, start by reviewing your tax return for errors and ensuring all income and deductions are included. Adjust your tax withholding if your income or job situation changes, and make sure you're claiming all available deductions and credits.

If you're self-employed, keep good records and talk to your accountant about PAYG instalments and eligible deductions like home office costs, vehicle use, or marketing.

At HelloLedger, we help individuals and business owners understand their tax situation and take the right steps to boost their refund. Staying on top of your finances year-round, lodging your return early, and making smart choices with your income can lead to better results. Not sure where to start? We’re here to help. Read more