This year, many Australians can look forward to a bigger tax return from the tax office. Most Australians will also get extra money from backdated changes to tax thresholds that came into effect at the end of 2020.
Last year the Morrison Government proposed Stage 2 tax cuts in the 2020/21 budget but the legislation was not passed until October 9.
Mark Chapman from H&R Block said, “most people had already got at least 8/12ths of the tax cuts through their pay but people are still owed a refund on the tax they paid from July 1 until the tax cut showed up in their pay pockets.”
Most people would’ve gotten the extra money by November last year, depending on the frequency of their pay whether weekly, monthly or otherwise – and also how quick their employer acted upon the tax changes during that time to increase pay.
An individual on $80,000 a year has a tax cut of about $1080 a year. For anyone between the income of $43,001 and $90,000, tax cuts are worth $1080 a year and more so the more you earn up to over $120,000 getting back $2430 yearly.
Anyone earning less than $37,000 receives $255. Anyone who received JobKeeper payments is also included as someone who can look forward to a tax refund, as this money is considered income. You must lodge a tax return to get payments.