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Taxpayers confused by Scott Morrison’s $1,080 tax refund

The excitement over the tax sweetener is quickly turning to confusion, as many Aussies wait for a handout that will never arrive.

 

 

The refund is actually a tax offset, which is calculated when you lodge your income tax return

The tax offset reduces your overall tax bill, so you might end up having to pay less if you receive a tax bill.

The low and middle income tax offset is a non-refundable offset, which means any unused offset amount itself cannot be refunded or reduce the Medicare Levy.

Taxpayers with a taxable income that does not exceed $37,000 will receive a low and middle income tax offset up to $255.  People with a taxable income that exceeds $37,000, but is not more than $48,000 will receive $255, plus an amount equal to 7.5% to the maximum offset of $1,080.

Quick Guide

                                       Taxable Income                          Rebate

                                              0 to $37,000                              255

                                       37,000 to 48,000                   255 + 7.5%

                                       48,000 to 90,000                             1,080

                                     90,000 to 126,000                   1,080 – 3%

                                              126,000 plus                                   0

 

 

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Political shenanigan in an election year will ensure no enonomic recovery in the US until 2013 | Europe will unwillingly accept its economic reality, Eurozone will face structural change as peripheral countries finally default leaving bond markets in chaos | China will move to slow its economy to avert economic meltdown as export-led recovery fails to materialize. This will impact the resources boom in Australia, lead to higher unemployment and potential recession spurred by weak manufacturing and retail