How you could be $1,080 better off a year as the Treasurer is set to extend the tax rebate for those earning less than $126,000 in tonight’s Budget
- Couples could be $2,160 better off in the coming year as the offset is extended
- Move expected in Tuesday’s budget helps those making up to $126,000 a year
- The lucrative tax offset worth up to $1,080 for singles and $2,160 for couples
- Available for past three income years and set to be extended for another year
- Extension set to be made in budget will cost the federal government $7billion
The tax rebate for low and middle income earners is set to be extended in Tuesday’s budget – meaning Australian couples would be $2,160 better off in the coming year.
Treasurer Josh Frydenberg is expected to extend the low and middle-income tax offset when he delivers the budget at 7.30pm.
The move would benefit Australians with a taxable income up to $126,000 and is worth up to $1,080 for singles and $2,160 for couples.
Australian couples will be $2,160 better off in the coming year as part of changes expected to be announced in Tuesday’s federal budget Pictured: Gold Coast couple Gary Yeh and Sara Godwin
The bonus, which was available for the past three income years, had originally been scheduled to run out in June.
Mr Frydenberg though is expected to extend it for another year at a cost of about $7billion.
‘The Coalition is always the party of lower taxes,’ Mr Frydenberg told reporters in Perth after news of the extension leaked to the media.
‘That’s our record and that will continue to be the message and the policies we deliver going forward.’
The offset is claimable when Australians submit their tax returns.
Workers don’t need to complete a section in their tax return to get these tax offsets as the ATO does it automatically.
Mr Frydenberg’s Tuesday announcement – which will unveil his second budget in seven months – is aimed at rebuilding the economy after the coronavirus pandemic.
A worker at a chocolate counter in Sydney. Australians with a taxable income up to $126,000 will benefit from the expected changes, with singles receiving a windfall of up to $1,080
How much do you stand to benefit from the low and middle-income tax offset? The above table shows how much Australians will get back from the government in their tax returns depending on their icnome
Single parents who want to buy a home, school leavers and retirees who want to boost their super accounts are all set to be big winners.
Mr Frydenberg has already promised more big spending next financial year, with Deloitte predicting a budget deficit of $87 billion, a figure well below this year’s estimated $167 billion shortfall.
‘We won’t be undertaking any sharp pivots towards austerity. We want more people in jobs and in better paying jobs. This is what our fiscal strategy is designed to achieve,’ he said.
The budget will contain tax cuts for average earners, huge changes to the child care system, a big boost for the aged care sector and a $110billion infrastructure drive with projects set to generate thousands of jobs.