The Coalitions $158 billion-dollar tax cut package has just passed through the Senate this week which means you can expect to receive immediate tax relief from the ATO in the coming weeks.
The bill passed the Senate shortly after 7 pm on Thursday the 4th of July but will take effect as of the 2019 financial year passed and as promised by the ATO, those who have already lodged their tax return will automatically receive a further tax offset via an amended notice of assessment.
So what do these tax cuts mean for you? For the 2019 financial year the added tax benefit for individuals are as followed:
If you earned:
- Less than $37,000: You will receive an extra $255 back.
- Between $37,000 and $48,000: You will receive $255 back plus 7.5% of what is over $37,000 (between $255 and $1,080).
- Between $48,000 and $90,000: $1,080 fixed.
- Between $90,000 and $126,000:You will receive $1,080 minus 3% of what is over $90,000 (so between $1,080 and $0).
- If you earn more than $126,000: There is no extra tax cut receivable.
So when will the tax cuts arrive and how do I get it?
It’s expected the cuts will be implemented as early as the end of the week. This means the tax offset will be applied to the tax return for the 2018-19 financial year. If you’ve been super proactive and already lodged your return, the ATO will automatically amend your refund, or reduce your payable amount.
It helps to know what you can claim so that you can maximise your tax return. Having a registered tax agent like Ezytaxback.com will also ensure you get the best return. If you’re short on time, contact our friendly Customer Care Team, and we can assist you in getting the most out of your return.