If you’re among one of the more than 1 million Australians who have already lodged a tax return, you could have woken up to a bonus this morning.
The Australian Taxation Office has said that the Coalition’s $158 billion tax cuts, which passed into legislation last Thursday, will start arriving into taxpayers’ bank accounts from today (Friday 12 July).
Ten million Aussies will get some form of tax relief, with those earning up to $37,000 a year to get up to $255.
Taxpayers who earn between $37,000 to $47,999 will receive between $255 and $1,080, with higher earners to get more back.
And if you earn between $48,000 and $90,000, you’re in the sweet spot: you – and about 4.5 million other Aussies – will see $1,080.
But the amount you’ll get back tapers off if you’re a higher earner: those who take home $90,001 to $126,000, you’ll get somewhere between $1,080 and $0.
Related story: Coalition’s income tax cuts: What’s coming up next?
I haven’t received my tax cut yet. What do I do?
Your tax sweetener should land in your bank account along with your regular tax return, so you don’t need to do anything special in order to get it – just lodge your tax return, like normal.
Taxpayers are clearly showing they’re keen for the extra cash splash, with the ATO yesterday having received more than 1.1 million lodged tax returns, which is half a million more than the same time last year.
However, the ATO has warned against lodging too early, with the best time to lodge being mid-August onwards.
#TaxTip: If you’re lodging your own #TaxReturn, wait until mid-August if you can! More of your info will be pre-filled – meaning there’s less work for you to do before you lodge 😎 Info @ https://t.co/kSc9gzN87S pic.twitter.com/ZA455u2nG4— ato.gov.au (@ato_gov_au) July 10, 2019
How you spend the money is up to you, but Treasurer Josh Frydenberg has said he’s confident Australians will spend it, with the tax cuts hoped to boost the economy, along with the RBA’s two interest rate cuts.
(Or you could fly to these 18 international destinations instead.)
Related story: What can I claim on my tax return?
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