Revealed: when YOUR $1,080 in tax relief should start arriving in your bank account
- Up to $1,080 in tax cuts are set to start arriving in bank accounts from July 16
- Low and middle-income tax offset extended for a year for 10million Australians
- H&R Block’s Mark Chapman said it took five working days to process returns
More than 10million Australians should start receiving tax cuts of up to $1,080 during the next few days.
In the Budget, Treasurer Josh Frydenberg extended low and middle-income tax offsets for those earning up to $126,000.
This will see 4.6million Australians earning between $48,000 and $90,000 receive $1,080 as another 1.8million people earning $37,000 to $48,000 get back $255.
More than 10million Australians should start receiving tax cuts of up to $1,080 during the next few days. Pictured is a Melbourne cafe worker
The new financial year started on July 1 which means tax cuts should start arriving next week.
Tax agent H&R Block’s director of tax communications Mark Chapman said the Australian Taxation Office was likely to start paying out refunds on July 16.
‘The ATO says that it won’t start processing 2020–21 tax returns until 7 July 2021 and doesn’t expect to start paying refunds until 16 July 2021 – so if you’re an early lodger, you might have to wait a bit,’ he told Daily Mail Australia.
‘Ordinarily, the ATO says that it aims to process the majority of electronically lodged tax returns within 12 business days but by and large most returns are processed quite a bit faster than that – often within 5 days.’
The low and middle-income tax offsets were extended for another year in the May Budget at a cost of $7billion.
Last year’s October Budget provided low and middle-income tax offsets for those earning up to $126,000.
Stage two tax cuts that in the 2019 Budget were earmarked for July 2022 were fast tracked to 2020.
In the Budget, Treasurer Josh Frydenberg extended low and middle-income tax offsets for those earning up to $126,000