The Government’s recently passed tax package paves the way for an individual tax cut ranging between $255 and $1,080, depending on how much a taxpayer earns.
The Government’s low and middle income tax offset, which was lifted from $530 to $1,080, covers about 70% of taxpayers earning up to $126,000 a year. The offset is calculated on individual income not household income.
Individual taxpayers earning below $37,000 will get up to $255 in tax relief. Those earning between $37,001 and $47,999 will get back $255 plus 7.5% above $37,000 (so that’s relief between $255 and $1,080).
Taxpayers earning between $48,000 and $90,000 will receive the maximum tax relief of $1,080. Taxpayers earning between $90,001 and $126,000 will get relief of $1,080, but minus 3% above $90,001 (so between $1,080 and zero).
People earning more than $126,000 will not receive any tax relief
Because it’s a tax offset, this means you have to lodge a tax return for 2018/19 in order to receive the money.
If you have already lodged a tax return, the Australian Taxation Office will automatically process the refund for you
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