Australians on an average income are set to get a big cash bonus – but they’ll need to put in a return.
Workers earning $90,000 were already set to receive $1,080 in tax cuts.
But they will also receive another $400 because the Budget was last year delayed by six months, until October 6, as a result of the Covid lockdowns – taking their total rebate close to $1,500.
H&R Block director of tax communications Mark Chapman said the relief didn’t become law until December 2020, which meant average-income Australians missed out on five months of tax offsets, worth $20 a week.
‘Australians will get a bumper tax return this year,’ he told Daily Mail Australia.
‘You missed out on five months of tax cuts which will now come through to you via your tax return.’
Australians earning $90,000 a year are set to get back $1,500 when they put in their tax return. Pictured is a women in a Sydney cafe in October last year ahead of the delayed Budget
The Budget for 2021-22, unveiled last week, continued the low and middle-income tax offsets for another year at a cost of $7.8billion, covering 10million Australians earning up to $126,000.
Like last year, 4.6million people earning $48,000 to $90,000 will get back $1,080 from the tax offsets program. Australia’s average, full-time salary is $89,000.
The 1.8million part-time and casual workers earning less than $37,000 a year, a level below the $39,200 full-time minimum wage, will receive $255.
Last year’s October Covid Budget back dated to July 2020 the second stage of tax cuts there were meant to come into effect in July 2022.
An accompanying adjustment in tax brackets saw the upper threshold for the 19 per cent rate increased to $45,000 from $37,000.
Australians earning between $45,000 and $120,000 were placed into the 32.5 per cent tax bracket, as part of changes unveiled in the April 2019 Budget ahead of the election.
Low and middle-income earners are typically receiving $1,080 in tax cuts. But they will also receive another $400 because the Budget was last year delayed by six months, until October 6, as a result of the Covid lockdowns. Pictured is Treasurer Josh Frydenberg on May 12, 2021
Those earning more than $120,000 were placed into the 37 per cent tax bracket.
The Australian Taxation Office is also cracking down on professional making excessive claims on their work-from-home expenses, after discovering an $8.7billion gap between what individuals declared on tax and what they actually paid.
Work-related expenses for 8.5million people added up to almost $19.4 billion 2020 tax returns.
Australian Taxation Office assistant commissioner Tim Loh said there would be crackdown on laundry, car travel and small expenses under $300 where a workers don’t have to provide receipts.
‘We know many people started working from home during COVID-19, so a jump in these claims is expected,’ Mr Loh said.
H&R Block director of tax communications Mark Chapman said the fact the relief didn’t become law until December 2020, which meant average-income Australians missed out on five months of tax offsets, worth $20 a week. Pictured is a Sydney cafe
‘But, if you are working at home, we would not expect to see claims for travelling between worksites, laundering uniforms or business trips.’
The ATO’s data analytics will be on the lookout for unusually high claims, particularly where someone’s deductions are much higher than others with a similar job and income.
‘We will also look closely at anyone with significant working from home expenses, that maintains or increases their claims for things like car, travel or clothing expenses,’ Mr Loh said.
‘You can’t simply copy and paste the previous year’s claims without evidence.’
Mr Chapman said taxpayers needed to keep receipts for every claim, especially when submitting details about home office costs like internet connection.
‘The focus on home office, mobile phone and home internet costs is likely to be particularly pronounced with so many people working from home due to Covid-19,’ he said.