Love him or hate him, Scott Morrison and his government certainly weren’t lying when it came to their promised tax breaks at the last election with the breaks pushed through parliament last night in record time.
The cuts passed with the support of the Labour party, but they reserve the right to repeal stage 3 of the package, which won’t come into effect until 2024-25 anyway.
So how much will you get back?
10 million Aussies will receive some form of tax relief starting immediately, with the 4.5 million earning between $48,000 and $90,000 right in the sweet spot, set to receive a $1,080 refund after they submit their tax return. Those who have already lodged should receive the bonus from next week.
The chart below shows a rough breakdown of the cuts at different salary brackets – with high-income earners the big winners in stage 2 and 3 of the plan.
N.B: Those earning more than $87,000 per year have benefited by up to $135 over the past financial year from the increase of the threshold for the 37 per cent tax rate from $87,000 to $90,000 a year.
How do you get the money back?
Just file your tax return. Simple as that. Got questions? Don’t bother calling up the ATO, the ABC reports they got 90,000 calls yesterday so expect to wait days for an answer.
As for where to spend this unexpected bonus…well that’s up to you, but here are a few tips below.