Taxpayers confused by Scott Morrison’s $1,080 tax refund

The excitement over the tax sweetener is quickly turning to confusion, as many Aussies wait for a handout that will never arrive.

 

 

The refund is actually a tax offset, which is calculated when you lodge your income tax return

The tax offset reduces your overall tax bill, so you might end up having to pay less if you receive a tax bill.

The low and middle income tax offset is a non-refundable offset, which means any unused offset amount itself cannot be refunded or reduce the Medicare Levy.

Taxpayers with a taxable income that does not exceed $37,000 will receive a low and middle income tax offset up to $255.  People with a taxable income that exceeds $37,000, but is not more than $48,000 will receive $255, plus an amount equal to 7.5% to the maximum offset of $1,080.

Quick Guide

                                       Taxable Income                          Rebate

                                              0 to $37,000                              255

                                       37,000 to 48,000                   255 + 7.5%

                                       48,000 to 90,000                             1,080

                                     90,000 to 126,000                   1,080 – 3%

                                              126,000 plus                                   0

 

 

AcctWeb






Secure File Transfer

Accounting News

Financial Planning News

Taxation rulings and documentation search

eWombat is a targeted search engine that only searches websites relevant to financial planners and accountants. A great resource to search for tax rulings, human services documents, etc.

Look up stock prices

Enter one or multiple ASX codes (separated by spaces) to get real-time trading information direct from the ASX website