The Coalition's $158 billion tax cuts passed the Senate on Thursday night, meaning millions of Australians will find an extra $1,080 in their back pocket.
The tax cut package passed through the Senate with bipartisan support, however Labor has said it reserves the right to repeal the third stage of the huge package, which it warns will be too expensive and disproportionately benefit high income earners.
But that stage won’t come into effect until 2024-25.
This is what you need to know today.
How much tax will I get back?
Around 10 million Australians will receive some tax relief.
Income up to $37,000: Around 2.3 million Australians will receive a lump sum of up to $255, with workers at the highest end of the income spectrum getting the most.
$37,000 - $47,999: Here, 1.7 million workers will receive between $255 and $1,080, with higher-income earners again getting a fatter sum.
$48,000 - $90,000: You’re in the sweet spot. You’ll get $1,080. Around 4.5 million Australians are in this group.
$90,001 - $126,000: Here, the tax relief tapers off from $1,080 to $0. This group is around 1.6 million strong.
Related story: Coalition’s income tax cuts: What’s coming up next?
Related story: What the Coalition win REALLY means for your taxes
When do I get the tax relief?
As treasurer Josh Frydenberg said earlier this week, for those who have already lodged their tax returns, the extra money back will start landing in bank accounts from next week.
If you haven’t lodged your return, you can expect payments to come in the next few months.
“If the legislation passes this week… the ATO (Australian Tax Office) staff are all ready to move it through the system and people will get it next week,” Frydenberg told Sky News on Tuesday.
“Once they put in their tax returns, if they put in their tax returns next week, they'll get it just days after.”
What do I need to do to get the tax relief?
You will need to lodge a tax return. Once that’s done, the money should just show up automatically in your account, in addition to whatever money you were able to reclaim on tax.
So, what happens next?
The government hopes this will boost an economy struggling with stagnating wage growth and low GDP growth.
“These tax relief measures will create a flatter and better tax system that will improve incentives for hard-working Australians and ensure that 94 per cent of Australians will face a marginal tax rate no higher than 30 cents in the dollar in 2024-25. Once our plan is fully implemented, around 13.3 million taxpayers will pay lower taxes,” Prime Minister Scott Morrison said on Thursday.
“Lower taxes are part of our plan for a stronger economy.”
The $158 billion tax plan, of which the $1,080 tax relief packages are one part, has another two stages.
Stage two will see the 19 per cent tax rate expanded up to include those earning up to $45,000 from $41,000. This will happen in 2022-23, and will also see the low income tax offset increased from $445 to $645.
Stage three - the most contentious stage of the package - will see the 32.5 per cent tax bracket increased to include those earning from $120,000 to $200,000. That means the 37 per cent tax bracket will be removed.
This stage will also see the top tax bracket of 45 per cent increase from $180,001 to $200,001.
That means by this stage, everyone earning between $45,000 and $200,001 will be taxed at the same rate. The 32.5 per cent tax rate will then fall to 30 per cent.
Make your money work with Yahoo Finance’s daily newsletter. Sign up here and stay on top of the latest money, news and tech news.