Why your $ 1080 tax reduction takes longer than promised in your bank account

Australians wait much longer than promised to receive their $ 1,080 tax cuts, but this may be because they make a simple mistake.

Advertisements

Earlier this month, tax commissioner Chris Jordan suggested that tax refunds would take an average of five days to arrive in bank accounts.

While many incomes receive their money within that timeframe, others still do not receive a refund two weeks after submitting a return.

The Australian tax office is now telling some taxpayers that it may take at least fourteen days for their claims to be reviewed.

Scroll down for video

Australians wait much longer than promised to receive their $ 1,080 tax cuts (pictured is a young woman paying income tax)

Australians wait much longer than promised to receive their $ 1,080 tax cuts (pictured is a young woman paying income tax)

Advertisements

& # 39; In general, it takes two weeks to process an electronic return & # 39 ;, an automated message told this Daily Mail Australia reporter Wednesday.

& # 39; However, some returns require manual processing, which takes more time.

& # 39; Your return should not take longer than 30 days to process from the time of receipt. & # 39;

Mark Chapman, communications director of tax accountant H&R Block, said that while most tax returns were processed within five days, Australians would have to contact an accountant or tax office if they had not received a refund within 10 days.

& # 39; ATO's service standard has always been 10 days, & he said to Daily Mail Australia on Wednesday.

& # 39; If you have not received it within 10 days, it usually means that something else is happening.

Earlier this month, tax commissioner Chris Jordan promised that tax refunds would take an average of five days to arrive in bank accounts. While many incomes receive their tax reductions within that period, others receive a refund two weeks after filing a tax return

Earlier this month, tax commissioner Chris Jordan promised that tax refunds would take an average of five days to arrive in bank accounts. While many incomes receive their tax reductions within that period, others receive a refund two weeks after filing a tax return

Advertisements

Earlier this month, tax commissioner Chris Jordan promised that tax refunds would take an average of five days to arrive in bank accounts. While many incomes receive their tax reductions within that period, others receive a refund two weeks after filing a tax return

& # 39; That is usually not the case that the ATO simply processes your refund, there is usually more to it than that. & # 39;

Online tax returns have already been partially completed by the government to take into account private health insurance data and bank interest, with data now more digitally linked than before.

In some cases, employers have been slow in providing wage data, while taxpayers have forgotten bank interest rates in some accounts, further delaying the processing of their tax returns.

& # 39; Much of that information goes to the ATO automatically, but it is also potentially more dangerous, you can miss things, & # 39; Chapman said.

Advertisements

& # 39; It's simpler, but it can also be a bit of a trap if you don't look closely.

& # 39; It does mean that the reimbursement you thought you might receive might turn out to be different than the one you get. & # 39;

The Australian tax office is now telling some taxpayers that it may take at least fourteen days for their claims to be assessed (photo is an automated ATO message)

The Australian tax office is now telling some taxpayers that it may take at least fourteen days for their claims to be assessed (photo is an automated ATO message)

The Australian tax office is now telling some taxpayers that it may take at least fourteen days for their claims to be assessed (photo is an automated ATO message)

HOW MANY DO YOU COME BACK?

Those who earn $ 48,000 to $ 90,000 will see their tax cuts double from $ 530 to $ 1,080.

Advertisements

Part-time employees who earn less than $ 37,000 a year will receive a smaller tax credit of $ 255, or just $ 4.90 a week.

Phase one raises the threshold for the 32.5 percent personal income tax bracket from $ 87,000 to $ 90,000 over a four-year period until 2022

Phase twoFrom July 1, 2022, the 19 percent income tax bracket will be raised from $ 41,000 to $ 45,000. It also raises the 32.5 percent personal income tax bracket from $ 90,000 to $ 120,000

Phase three sees the 37 percent tax rate being abolished from July 1, 2024, and a new 30 percent tax rate being created for all individuals earning between $ 45.001 and $ 200,000. The number of tax brackets will be reduced from five to four for the first time since 1984

H&R Block said that those who owed money to the tax office had bank interest that was not on their tax return, or who received Centrelink payments, were delayed earlier.

Advertisements

Mr. Chapman advised those involved about possible delays to contact their tax agent or to prepare for long delays while trying to contact the ATO.

& # 39; If you haven't heard from the ATO within ten days, talk to your accountant if you have an accountant – about 70 percent of people use an accountant, & # 39; he said.

& # 39; If you don't have one, it's actually pretty hard to contact the ATO because the ATO is a very large organization and they usually don't tell what's going on. & # 39;

The Senate passed the $ 158 billion package of government tax cuts until July 4 – three days after the fiscal year began.

Days later, the myGov website crashed after a stream of interest from Australians who filed their tax returns.

H&R Block said the rush to regulate tax cuts for 10 million Australian employees meant that the tax office was flooded beyond what they had expected.

The delay is even longer for those who submit a paper tax return, the ATO advising that there is a waiting period of 10 weeks.

This chart shows how tax cuts are broken down by bracket: 4.5 million taxpayers receive the full $ 1,080 reduction

This chart shows how tax cuts are broken down by bracket: 4.5 million taxpayers receive the full $ 1,080 reduction

This chart shows how tax cuts are broken down by bracket: 4.5 million taxpayers receive the full $ 1,080 reduction

After that time, taxpayers can visit the tax office website to follow the progress of their tax return.

Advertisements

More than 4.5 million Australians earning $ 48,000 to $ 90,000 annually receive the full $ 1,080 in tax reduction announced in the May budget and passed by parliament earlier this month.

It is part of an overall tax reduction package for 10 million employees who earn up to $ 126,000.

Those who earn less than $ 37,000 will receive smaller tax cuts of $ 255 or $ 4.90 per week.

Employers with more than 20 employees are no longer required to provide group certificates, which means that taxpayers must obtain them through the myGov website or through a tax accountant.

. (TagsToTranslate) Dailymail (t) news

Advertisements

- Advertisement -