Do You Qualify For The Government's $1080 Lump Sum Payment?
Here's what you need to know
It's more looking ever more likely that the federal government's controversial tax cut package will pass, which means that about 10 million working Australians will feel some level of tax relief.
Under the proposal, all low and middle income earners who earn less than $126,000 a year will qualify, with 4.5 million workers receiving a full lump sum of $1080.
And the money could be in your pocket soon; anyone who has already lodged a tax return will score the offset in their payment from next week.
So who gets what, and when does it arrive? Here's the info you need to know.
WHAT WILL YOU GET FROM THE TAX PACKAGE?
* A tax offset for people earning low and middle incomes will be doubled for the 2018/19 and 2019/20 financial years.
* The change means singles will get up to $1080, while dual-income families could score up to $2160 each year.
- Those earning up to $37,000 will receive up to $255;
- Those earning between $37,000 and $47,999 will receive payments increasing incrementally up to $1080;
- Those earning between $48,000 and $90,000 will get the full lump sump of $1080;
- Those earning between $90,001 and $126,00 will receive payments decreasing incrementally to $0.
* These payments will arrive in end-of-year tax returns.
* From 2022/23, the government will lift the upper threshold for the 19 per cent tax bracket from $41,000 to $45,000.
* At the same time, the low income offset will be increased from $645 to $700.
* From July 1, 2024, the 32.5 per cent tax rate will drop to 30 per cent.
* That means all Australians earning between $45,000 and $200,000 will be on the 30 per cent rate.
THE LONG-TERM BENEFIT:
* Over a decade, the government says its plan means someone with an average taxable income of about $60,000 would be more than $15,000 better off.
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