Tax bonus: Up to $1080 in bonus refunds confirmed

I paid attention during the recent federal election campaign, I swear. But somehow, in between the chaotic and confusing messages about negative gearing and childcare and first homebuyers and climate change, I missed the part where Scott Morrison promised us all a bunch of tax cuts.

What rock have I been living under?!

Now that the election behind us, the government has confirmed it will be following through with their promised tax cuts.


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These amount to up to $1,080 for over 10 million Australians – and they’ll be available in about six weeks, once we lodge our 2019 tax returns!

“A little speed hump is that only the original offset of $530 will be ready to go by 30th June,” says accountant Sam Robinson.

“But never fear – the ATO have said that as soon as the second part of the offset, which is worth up to $550, is passed through parliament, amended assessments will be issued automatically and refunds given to eligible Australians that have lodged their tax returns.”

For those, like me, who may have missed the news about this tidy financial windfall, this is what it’s all about in a nutshell.

Over the next five years, the Coalition’s long-term tax plan will see tax rates change in three phases: now, in 2022, and in 2024.

By 2024 the 37 per cent tax bracket will be removed entirely, so that all taxpayers earning between $45,000 and $200,000 will pay a flat 30 per cent tax rate. Those earning over $200,000 will pay 45% of any earnings above this amount.

From this July, when you lodge your tax return, you are eligible for the following tax refund:

• Those earning below $37,000 will receive up to $255.
• Those earning between $37,001 and $47,999 will receive between $255 and $1080.
• Those earning between $48,000 and $90,000 receive the full $1080 tax cut.
• Those earning $90,001 to $126,000 receive a portion of the above tax cuts.
• Those earning more than $126,000 receive no further tax breaks.

I suspect the ATO’s online tax lodgement platform is going to get smashed with activity from July 1. After all, if this isn’t an added incentive to get your 2019 tax return lodged as early as possible, then I don’t know what is!

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Taz
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Taz

What if you’ve already lodged your 2018 – 2019 return?

Fer
Guest

it just gets added automatically

Cecilia
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Cecilia

You don’t get paid 1080 anyway.. I just got mine back …1080 is an offset….so u get approx 400 back

Lauren Fisher
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Lauren Fisher

Why are people earning less than $48K NOT getting the full $1,000? How is this calculated?

Veronica
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Veronica

Why would someone who pays less taxes from a lesser income get paid more of a bonus? It’s not a charity. It makes sense that people earning more, therefore paying more tax, get a higher bonus… it isn’t rocket science.

Ollie
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Ollie

It’s calculated as $255 flat (if you pay at least that much tax) + 7.5% of any tax paid beyond the 37k threshold. In the long term though, they’re also raising the tax free threshold (so many more low-income people will no longer have to pay income tax at all).

Lauren
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Lauren

I was simply asking how it was calculated. If you listen to the news stories the headlines all said “Low Income Earners” would receive $1,000 cash back. Obviously NOT! Thanks you to Ollie who answered the question. Veronica I hope You don’t ever have to try and survive on less than $41K.

Jason
Guest
Jason

exactly i study work and raise 3 children, excuse me for not earning more.

John
Guest
John

And no doubt you already receive welfare for the kids, lack of work and probably state paid study. Why do people with kids feel though they are entitled? Your choice to have kids. Millennials and the gimme gimme mentality

Tyler
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Tyler

What if you already received your tax return will
You still get the bonus?

KEN ROUGHLEY
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KEN ROUGHLEY

GOT MY TAX RETURN BUT NOT THE OFFSET I EARN BETWEEN THE REQUIRED DOLLARS BUT HAVE NOT SEEN THE OFFSET GO IN WHY

Bricks
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Bricks

Same here maybe someone can help us.

Kylie Derooy
Guest

Its all a load of shit.😯
Last year i got back appreciate $3000 .
And with the same earnings and tax deductions as last year , I owe money. Not happy😠

Manu
Guest
Manu

Do i get this under a bridging visa de facto?

brian
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brian

does the tax offset go in after you lodge your return as a separate payment or is it apart of your return ?