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ATO puts $2,500 in 2.1 million Aussie bank accounts

·2-min read
Yellow envelope with Australian $50 notes, pedestrians walking in Sydney.
Millions of Australians have already received their tax refunds. (Images: Getty).

The Australian Tax Office (ATO) has paid out more than $5.3 billion in tax refunds less than a month after the new financial year kicked in.

More than 2.1 million taxpayers have received their refunds, with an average refund of $2,490.

“The injection of over $5.3 billion into the economy is welcome news during the current COVID-19 pandemic,” Assistant Treasurer Michael Sukkar said.

He said the returns had been boosted by the low- and middle-income tax offset (LMITO), which delivered offsets of up to $1,080 to around 10 million taxpayers.

The LMITO was extended in the May Federal Budget, which means taxpayers will receive another offset after lodging their tax returns in July 2022, in addition to this year’s offset.

Taxpayers looking for help with their tax returns should consider reaching out to the ATO’s Tax Help program, Sukkar added.

This service is available to anyone with simple tax affairs who is earning less than $60,000.

“Australians should be confident in the Government’s plan for economic recovery and support for individuals and families across the country,” Sukkar said.

The ATO’s figures come as Australia looks down the barrel of its second recession in as many years, with the September quarter almost certain to record negative GDP growth.

Coupled with a potential slide backwards in either the March or December quarter, Australia would technically have entered recessionary territory.

The Sydney lockdown is estimated to have already cost $1 billion a week, according to CommBank analysis. That increases to a $2 billion weekly loss without the construction industry operating.

This lockdown isn’t set to end until the end of August at the earliest, reducing Australia’s most populous city to a standstill. The four week extension is tipped to cost the Federal Government $2 billion in income support alone.

The Federal Government on Wednesday responded to calls to increase the support payments to workers forced to stay at home, bringing the weekly payments to $750 from $600.

Additionally, support was extended to include Centrelink recipients who also work, with those workers to receive an additional $200 a week on top of their regular income support.

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Image: Yahoo Finance
Image: Yahoo Finance
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