Here are two words everybody likes to hear: tax cuts. Paying less tax is usually a reason to celebrate, and therefore the low and middle tax offset can assist you do exactly that.
When was this tax cut 1st implemented?
This offset was created by the Australian government many years ago and has recently been extended to use to the year complete 30 June 2021.
Who is eligible for this tax cut?
There are two tax offsets to discuss here. The low income tax offset and the low and middle income tax offset. Some taxpayers within the lower income tax brackets may be eligible for both. The amount of tax offset received will depend on your taxable income in the 2021 financial year.
But it is important to note that the low income tax offset as well as the low and middle income tax offset will only allow you to get a tax refund up to what tax you paid from all sources of income. In other words you cannot receive more in tax refunds/tax offsets than what you paid in tax in the 2021 financial year.
The low income tax offset will allow you to claim up to $700 in tax offsets but if your income is in excess of $66,667 the tax offset drops to nil. Income between $37,500 and $66,667 will receive a part of the tax offset but will not receive the full offset.
The low and middle income tax offset will provide you with up to $1,080 on tax offsets. If your income is between $37,001 and $126,000, you will get some or all of the low and middle income tax offset. This is in addition to the low income tax offset discussed above.
So how do I get this extra tax refund?
It is easy! Just lodge a tax return and our expert tax consultants will make sure you get every dollar you are entitled to claim.
Deadline to lodge your taxes is October 31st if you do it yourself and later if you work with a tax agent – and, the sooner you get it done, the sooner you will get your refund!
It is also worth remembering that missing the deadline can result in a Failure to Lodge penalty from the ATO, which increases with time. So, get it done as soon as possible and you will enjoy both an increased tax refund and no unwelcome fines.
Once you have your (increased) tax refund, there are so many smart ways to use it including:
· Paying off outstanding credit card, bank loans or bills
· Starting or adding to an emergency fund
· Boosting your super
· Setting up a mortgage offset account
· Investing in shares
· Donating to a good cause
· Investing in yourself (through a course or activity)
Feel free to contact us for any assistance you may require. At Instant Tax Refunds, we strive to provide high-quality service that constantly meets and sometimes exceeds our customers' expectations.