Lightning McQueen wrote:I hear all this hoo haa about everyone that earns under $90K pa will get an extra $1080 in their tax return, this doesn't seem to be the case though.
Does anyone know of any other breakdowns that see's only $540 be credited?
If you earn between 55 and 80k you will get about $550 more this tax return. The ATO has already applied the changes so what you see yesterday or today is all you will get. (If you lodged last week you will get the diference creditted)
This explains it in a bit more detail:
Am I better off?
Yes. But by $500, not $1,000.
Remember – a similar tax cut was already due to come in for the 2018-19 financial year, before the government passed this bill. The bill that just passed is increasing them, not inventing them.
In June 2018, the government passed tax cuts of up to $530.
So if the bill hadn’t passed, you still would have received:
$200 back – if you earned below $37,000
$200 back, plus 3% of everything over $37,000 – if you were between $37,000 and $48,000
$530 back (flat) – if you earned between $48,000 and $90,000
$530 back, minus 1.5% of everything over $90,000 – if you earn over $90,000
So the government has boosted the $200 offset to $255, boosted the percentage you get back from 3% to 7.5% for people between $37,000 and $48,000, and doubled that $530 to $1,080 for everyone else.
It has also doubled the percentage that is deducted (from 3% to 1.5%) for those earning over $90,000.
So, back to the examples from before:
Someone earning $35,000 is $55 better off (from $200 to $255)
$45,000 equals $425 better off (from $440 to $855)
$55,000 and $80,000 equals $550 better off (from $530 to $1,080)
$100,000 equals $400 better off (from $380 to $780)
$120,000 equals $80 better off (from $100 to $180)
Will it be around forever?
No. You’ll get this tax cut for four years (including the tax return you’re about to file).
But then it will be gone. It is an explicitly temporary measure.
So it will apply to the tax return you’re about to file (2018-19), next year’s (2019-20) and the next two years after that (2020-21 and 2021-22).
After 1 July 2022, it will disappear.
Posted: Tue Jul 09, 2019 8:53 am
