2019 Tax Return: The $1080 Tax Cut

Will You Be Receiving the $1080 Boost in Your 2019 Tax Return?

July 8, 2019

You can expect an extra boost in your tax refund this year, as the Senate has passed the three-stage tax cut package earlier this month. The package will see $158 billion worth of personal income tax cuts passed on to taxpayers, with the goal to provide a much-needed short-term rise in economic growth and consumer spending. Depending on your income bracket, you could see as much as $1080 extra in your 2019 tax return.

 Do You Qualify?2019 tax return

The tax cut amount that you may receive will depend on your income bracket. Close to 4.5 million Australians workers are set to receive the $1080 payment, while more than 10 million will receive some sort of other tax offset.

– Those earning up to $37,000 will receive up to $255.

– Workers earning between $37,000 and $47,999 could save anywhere between $255 up to the full $1080.

– Those earning between $48,000 and $90,000 will be entitled to the full lump $1080 lump sum.

– Those earning between $90,001 and $126,000 would also save up to $1080 when they file their tax return.

 

The payment will be applied when you lodge your 2019 tax return. The Australian Tax Office have stated that it will automatically apply the tax cut to those who have already lodged their tax return for this year.

 

How It Works:

The tax cut package will be rolled out in three phases.

The first stage of the plan will deliver up to $1080 to low and middle-income earners when they lodge their tax returns in coming months.

The second stage will top up a low-income tax offset, which means more people – earning up to $45,000 instead of $41,000 – will get a 19 per cent tax rate.

The third stage is flattening the tax rate from 32.5 per cent to 30 per cent for people earning between $45,000 and $200,000 from mid-2024.

 

For more information or to schedule an appointment, please contact our Chelsea office on 03 9773 3660

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