New Australian government rebates and offsets.
How do I claim the government Rebates?
Do I need to do anything extra?
How much will I receive of this government offset?
The new government rebate has confused many of my clients and most Australians, here you will understand how the rebate and offset will work.
The new fairer system was set up for those who earn under $126,000 per financial year in Australia.
Please be aware this is not an automatic refund.
Earning a wage or salary in the 2019 financial year, yes that’s correct, the more you earned the more of the offset and rebate you receive.
The rebate and offset was designed for the low and middle class.
Your maximum refund you can obtain by this offset is $1,080.
Australians think they automatically are entitled to the rebate and offset because you had a job.
But all my friends are receiving it? correct your friends may have received it because they paid more tax than you and may have earned more money than you it’s as simple as that.
If you had earned less than $37,000 the maximum you can receive as a refund in your tax return which is calculated by the Australian tax office is $255 for the financial year.
The maximum you can receive for the 2019 financial year is $1,080 for incomes up to $126,000
How do I receive the government rebate or government offset for the 2019 financial year?
You don’t need to do nothing, when you lodge your tax return this year, we suggest do it as quick as possible, you will automatically receive the refund and government offset.
Be mindful that this government offset for those who earn less than $126,000 does not mean that this is a refund. The government offset will either reduce your tax debt or you will receive a larger refund, that are the only two outcomes, if you have paid no tax then you will not receive anything in your tax return.
If you are running a small business for all those sole traders out there, you are also entitled to another $1,000 government offset for your business, so this can coincide with the above government grant.
Typically the maximum time you will see your refund in your nominated bank account will be two weeks, however our clients are seeing their tax refunds within 7 days.
In a nutshell
If your taxable income:
- Does not exceed $37,000, you will be entitled to an offset amount of $255 on your tax payable.
- exceeds $37,000 but is not more than $48,000, you will be entitled to an offset amount of $255, plus 7.5% of the excess above $37,000 to a maximum offset of $1,080 on your tax payable.
- Exceeds $48,000 but is not more than $90,000, you will be entitled to the maximum offset amount of $1,080 on your tax payable.
- Exceeds $90,000 but is not more than $126,000, you will be entitled to an offset amount $1,080 less 3% of your taxable income above $90,000.
If you need assistance in working out your income offset and or rebate due to the new government rebates please contact us here Contact Us