Australians receive an average of $2,490 in their tax refunds in July as 2.1 million returns have been processed
Revealed: How much Australians REALLY get back on their tax returns as they use lockdowns to get paperwork done early
- Australians have recovered an average of $2,490 since early July 2021
- That includes up to $1,080 in low- and middle-income tax compensation for $10 million
- Australian Taxation Office processed 2.1 million bank account refunds
- That means a fifth of the 10 million employees have received tax relief from the budget
Australians get an average of $2,490 in tax refunds as more people get their paperwork done early due to lockdowns.
Since early July, 2.1 million refunds have been deposited into bank accounts, new data from the Australian tax office shows.
That means one-fifth of the 10 million people who earn up to $126,000 a year have already received their low and middle income taxes of between $255 and $1,080.
When that tax credit was combined with claimed tax deductions, average repayments to date in bank accounts were $2,490, returning $5.3 billion to taxpayers since the start of the fiscal year four weeks ago.
Australians (pictured shows a woman walking during the lockdown in Sydney) get an average of $2,490 in tax refunds as lockdowns help more people get their paperwork done. Since early July, 2.1 million refunds have been deposited into bank accounts, new data from the Australian tax office shows
Assistant Treasurer Michael Sukkar said the repayments were needed to boost the economy during the lockdowns.
“The injection of more than $5.3 billion into the economy is welcome news during the current Covid-19 pandemic,” he said.
In the May Budget, Treasurer Josh Frydenberg expanded low- and middle-income tax offsets for 10 million people who earned up to $126,000 at a cost of $7.8 billion.
As a result, 4.6 million Australians earning between $48,000 and $90,000 will receive $1,080, while an additional 1.8 million people earning $37,000 to $48,000 will receive $255 back.
Those who make between $90,000 and $126,000 get a smaller amount back.
Last year’s October budget provided low and middle income tax offsets for those earning up to $126,000 and this continued in the May 11 budget.
Assistant Treasurer Michael Sukkar (pictured) said the $5.3 billion in tax refunds were needed to boost the economy during the lockdowns
Both sets of tax credits mean that an Australian earning $90,000 pays $7,020 less in tax over the four years from 2018 to 2022. Those earning between $60,000 and $80,000 pay $6,480 less compared to the 2017 tax authorities.
Phase two tax cuts planned for July 2022 in the 2019 budget were accelerated last year to 2020.
High income earners will receive major tax cuts from July 1, 2024, as the 37 percent tax bracket is abolished and a new 30 percent tax bracket is created for individuals earning between $45,000 and $200,000.
Opposition leader Anthony Albanese announced Monday that his party would support these Phase 3 tax cuts, despite public misgivings this year from shadow treasurer Jim Chalmers.
The number of tax brackets will also be reduced from five to four for the first time since 1984 as part of phase three tax cuts announced in 2019.
Australians have until October 31 to file their tax returns, either online through the tax office’s website or through an accountant.