Australians will soon celebrate the one thing the entire world dreads, paying taxes. And all this due to the new announcement by the federal government that the tax paying citizens of the country will receive between $255 and $1,080 in tax cuts for the 2018-19 financial year.
This has created a cheer among people. 90, 000 Australians called the ATO to know about the details since this was announced. However, the refund of the decided amount will appear in their accounts not before August. So, the ATO (Australian Taxation Office) has asked people to not file early in order to avoid unnecessary arrears. The tax refund will also automatically make an appearance without any specific procedure to be followed. They will not be expected to do anything out of the ordinary in order to benefit from this new rule.
For those who owe debt to the ATO, the refund amount will be deducted to cover any dues and then credited into their amount depending largely on the size of their debts.
The Federal Government’s tax plan includes changes to the Low and Middle Income Tax Offset (LMITO). This will substantially reduce the amount of tax low and middle income earners need to pay. The Federal Government estimates that 4.5 million Australian taxpayers will be eligible for the full LMITO of $1,080, while another 5.6 million will receive a partial LMITO. The Government has increased the base and maximum amount of the LMITO to $255 (up from $200) and $1080 (up from $530). People earning less than $37,000 get $255 and the ones whose income is between $37,000 and $48,000 get $255, plus 7.5 cents per dollar for every dollar between $37,000 and $48,000. For those on between $48,000 and $90,000 get a total maximum of $1,080. An income of $90,000 to $126,000, the offset will phase out at a rate of three cents in the dollar.