More than half of Aussies don’t think they will get a bigger tax refund this year compared to last year, according to a survey, yet tax cuts mean they could score a big amount of money.
Last year in 2020, a third of Aussies received between $1000 and $4999, according to the survey, while 27 per cent scored less than $1000.
Just 7% of charged were lucky enough to get a return between $5000 and $9999, while 3% made a huge $10,000 to $49,999 from their tax return.
But with tax cuts announced last year as the pandemic erupted, more than 10 million Aussies are likely to receive a $1080 bonus.
“Australians will get a super tax return this year in 2021 due to the lowest- and middle-income tax balance and also the changeover in tax thresholds from 1 July 2020,” said Ricky Dheri CPA, director of Rick & Mon Accountants & Business Consultants.
“For all those Aussies who be thinking to pay tax this year, this might come as a lovely wonder as the effect of both events could mean they are actually due a refund, or at the least a reduction in their tax burden.”
The lower- and middle-income tax balance is accessible to all taxpayers with income up to $126,000. The amount accessible varies varying on your income.
“Basically, if your pay is less than $37,000, you will get $255. If your income is among $37,001 and $48,000, the tax offset will rise gradually to $1080,” clarified Ricky Dheri.
“Amount Between $48,000 and $90,000, you will obtain the highest of $1080. Earn more than $90,000, and the balance gradually stages out, fading after $126,000. You must lodge your tax return in request to get the offset.”
However, you don’t require to completed anything in your tax return 2021 in order to get it; simply lodging it is ample. Tax Return 2021 FAQs
Another tax change
The other portion of the tax cuts occurs from the difference in tax thresholds where people have got a tax cut varying on how much they earn.
For those on the smaller end of the salary level, they were given some tax relief when the 19% tax policy was raised from $37,000 to $45,000, indicating the 32.5% tax set only affects to those receiving between $45,001 and $120,000.
The lower limit for the 37% tax range has been moved to salaries beyond $120,001 as part of the adjustments.
These tax investments will also be provided through your tax returns and even though some of the cuts have previously been adopted on through your salary, the change was only presented in October last year meaning there’s yet some hard cash to score.
The total cost of the tax cuts varies on your salary but considers like this:
- $21,886 – $45,000: up to $1080
- $45,001 – $90,000: $1080
- $90,001 – $120,000: up to $2430
- $120,000+: $2430
However, you’ve now had about seven months of the cuts went on through your pay package.
The survey found 44 per cent of Aussies will be putting their tax refund back into their savings account, while a additional 25% will look to pay off debt.
If you have any queries or questions regarding tax return, ask our Melbourne Tax Accountants