Revealed: When YOUR $ 1,080 Tax Break hits your bank account
- Up to $ 1,080 in tax cuts are expected to hit bank accounts starting July 16
- Low and middle income tax compensation extended by one year for 10 million Australians
- Mark Chapman at H&R Block said it took five business days to process returns
More than 10 million Australians should receive tax cuts of up to $ 1,080 in the next few days.
In the budget, Treasurer Josh Frydenberg expanded low and middle income tax breaks for those earning up to $ 126,000.
This will result in 4.6 million Australians making between $ 48,000 and $ 90,000 getting $ 1,080, while another 1.8 million people making $ 37,000 to $ 48,000 will get $ 255 back .
More than 10 million Australians should receive tax cuts of up to $ 1,080 in the next few days. A Melbourne café employee is pictured
The new fiscal year started on July 1st, which means the tax cuts should start next week.
Mark Chapman, director of tax communications for tax advisor H&R Block, said the Australian tax office is likely to begin paying refunds on July 16.
“The ATO says it won’t process 2020-21 tax returns until July 7, 2021 and is not expected to start paying refunds until July 16, 2021 – so if you’re an early tenant you may have to wait,” he told Daily Mail Australia.
“Typically the ATO says that most electronically filed tax returns should be processed within 12 business days, but by and large most tax returns are processed much faster – often within 5 days.”
In the budget, Treasurer Josh Frydenberg expanded low and middle income tax breaks for those earning up to $ 126,000
A spokeswoman for the Australian Tax Service said most online declarations were processed within two weeks.
“Those who deposit through our online myTax service can generally expect their refund to be processed in less than two weeks,” she told Daily Mail Australia.
“It is important to note that the amount of a refund will be different for everyone, depending on individual circumstances and the amount of taxes paid.”
The low- and middle-income tax breaks were extended for another year in the May budget at a cost of $ 7 billion, bringing relief between $ 255 and $ 1,080.
“People don’t have to do anything else to claim the offset. We will clarify that when you submit your tax return, “said the spokeswoman for the tax office.
Last year’s October budget included low- and middle-income tax breaks for those earning up to $ 126,000.
The second tier tax cuts, scheduled for July 2022 in the 2019 budget, have been accelerated to 2020.