Tax cuts are official!
With the Senate passing the Government's tax plan in full, most taxpayers can expect to see some extra cash in their tax refund this year.
If you earn between $48,000 and $90,000, you can expect to receive an extra $1,080
The extra refund reduces for incomes above $90,000, and stops at $126,000
An important catch is that you need to lodge your tax return to get the refund - it is not adjusted in the tax withholding rate on your pay.
If you plan to go on a shopping spree - wait until you actually have your refund. Your annual Family Tax benefit, Child Care or Child Support is reviewed once your return is lodged, and any tax refund can be offset against an over payment or debt on these items.
If you are like myself and had your tax return information ready on the 1st of July, we recommend waiting until your employer finalises your income statement. If the information is incorrect, you will need to lodge an amended return, and interest can apply.
The Tax Office will start processing tax returns from tomorrow, and refunds will be paid from the 16th July.
Further tax cuts are scheduled to start from 1 July 2022, and the following table highlights what you can expect to receive in the future.
| Income | Tax cut from 2018-19 | Tax cut from 2022-23 | Tax cut from 2024-25 |
| $30,000 | $255 per year | $255 per year | $255 per year |
| $60,000 | $1,080 per year | $1,080 per year | $1,455 per year |
| $90,000 | $1,215 per year | $1,215 per year | $2,340 per year |
| $120,000 | $315 per year | $2,565 per year | $4,440 per year |
| $150,000 | $135 per year | $2,565 per year | $6,540 per year |
| $180,000 | $135 per year | $2,565 per year | $8,640 per year |
Talk to our friendly team today for help on your tax return. Contact us on +61 7 3378 7399 or via email at info@gillmckerrow.com.au
