Aussies are looking forward to a nice reward after a difficult year in the form of bumper tax refunds. All up, most Aussies can expect to see about an extra $1,400 in their refund this year if they earn less than $90,000.
Nathan Kerr, CEO of www.oneclicklife.com.au said “The only thing to do now is to go and lodge your Tax Return online, then await the end of the year bonus! It only takes 10 minutes to lodge your online Tax Return with the ATO using our platform.”
Tax refunds this year will include the extended Low and Middle Income Tax Offset worth up to $1,080 and a smaller bonus of a little over $300 from back dated changes to the tax thresholds passed last October.
Low and Middle Income Tax Offset
The Low and Middle Income Tax Offset is designed to offset tax on up to $90,000 income of $1,080, then reduce by 3c in the dollar as income rises up to $126,000. The ATO table(1) for this offset is set out below.
Back dated changes to the tax thresholds
Changes to tax thresholds we announced last October with application from 1 July 2020. Most Aussies will have seen the benefits from October onwards, and the rest of the benefit will come in the way of a tax refund when they lodge their 2021 Tax Return.
So, enjoy your end of year bonus, and spend it wisely!