$950 Tax Bonus for Australians
The Australian Government has announced a A$42 billion ($27 billion) stimulus package to help the economy avoid recession due to the global financial crisis. The package will be split in two where A$29 billion will go to construction and infrastructure spending, while the remaining A$12.7 billion will go to Australians with low to middle income. Over 10 million Australians are expected to receive at least one of the cash payments.
Who is eligible?
The Australian Tax Office (ATO) will use your Australian tax return for the previous year to determine if you are eligible for the tax bonus. To qualify for the payments you must:
- lodge your 2007/2008 tax return before June 30th
- your taxable income must not exceed $100 000
- your adjusted tax liability for 2007/08 is not zero – here is a simple formula to check this: tax on taxable income + medicare levy – tax offsets and other credits > 0 !
- you must be an Australian resident for tax purposes (or were one sometime in the 2007-2008 tax year)
How much will you be paid?
The ATO will use the details from your 2007/2008 financial year to determine the amount you will receive. If you earned up to $80,000 in the tax year you will receive a one-off $950 payment. People with incomes between $80,000 and $90,000 will receive $650 while those who earned between $90,000 and $100,000 will be paid $300. People earning over $100,000 are not eligible.
Single parent families and families with only one working parent will receive an additional $950 bonus. Such bonuses are also foreseen for farmers who don’t have sufficient taxable income to benefit from the tax bonus for workers, as well as apprentices and students receiving social security payments.
All payments are not tax deductable, but you must not forget to file your australian tax return before June 30th!
UPDATE: As noted from one of our readers there have been some changes to the size of the tax bonus. You can read more about the change here
If you still have questions about the stimulus payment or if you want to find about getting yours, I’d like to direct you to contact our Australian tax team on Australia@taxback.com or talk with our staff live online at www.taxback.com/chat to find out how taxback.com can help with your stimulus payment.
According to this page…
http://www.treasurer.gov.au/DisplayDocs.aspx?doc=factsheets/2009/004.htm&pageID=011&min=wms&Year=&DocType=3
The package has now only included a up to $900 Tax Bonus, not the FULL $950. And at the bottom, they mention that they had to make some ammendments.
Thank you for noticing the change in the plan.
do people that are working part time and casual get this amount too?
Hello Jenna,
The tax bonus is distributed per taxable income, regardless of what hours you work. You can find the income thresholds in the updated post here http://blog.taxback.com/50-removed-from-australian-tax-refunds
how can i apply it by myself??? please help~~
Hi there, if you are working on a sponsorship visa are you eligible for a cash bonus?
Thanks, Paul.
Hi Paul,
You need to be a resident for tax purposes to avail of this bonus. This generally means that you need to have worked in one place for at least 183 days. If you qualify, you should be able to claim this bonus like any Australian would.
John,
You don’t need to actually apply for the bonus, the tax office will pay it to you if you qualify. However you do need to file your tax return.
when does this payment actually take place – is it done when we file this financial years tax return or some other way?
cheers
Alex,
Payments start from April, and will be made after the individual tax return is assessed. Those who file their tax return earlier should also be receiving their bonus earlier.
Hi, If I completed my tax return online and gave bank account details, will the $950 be simply deposited into the same bank account into which my original tax return was deposited_
Hi Rob,
Yes, if you are eligible for the tax bonus, you will receive the payment the same way you receive your tax refund.
if i am a full time uni student, and a low income earner, do i receive two payments?
If my tax return was directly deposited into a bank account which is now closed, how will I receive the payment?
if i started working (first job) last year in november does that mean i wont be eligible for the bonus because i havent worked long enough?
If you spent 2007 as a full-time sole carer on Centrelink Newstart with exemptions from work search, are you still able to receive the bonus?
gud day,
im a full time worker but i am not a permanent resident and holding a 457 visa and work in one employer for more than 3 years. Is it posible that im eligible to get a tax bonus..?
thank you..
Further details are available on the ATO website: http://ato.gov.au/corporate/content.asp?doc=/content/00178930.htm&page=1&H1
I did not work in the last tax year but have a small business with my husband, our tax is currently being asessed by our accountant, do we still qualify?
My wife and I were both low income earners in 2007/8 and neither of us had a tax liability. I am over 65 so I had rebates etc. therefore didn’t pay tax.
WIll either of us receive the bonus?
Thank you.
hi some friends of mine are confused .they heard that if you earn under 80.000 you can get up to four payments is this true? i told them that i havent heard that one and told them that it was highly unlikely
Even though I have been paying tax all my working life, I was overseas for the year 2007/08. Do I qualify for the bonus or am I discriminated against because I didn’t work in Australia for this time frame?
I started work in december 2008 am i eligible for the 900 dollars from the government
Hi, in the year of 07-08 I was in year 12 and worked part-time.
I paid tax however I received it all back. I also deferred from university this year so I am not currently studying.
Am I eligible for the cash bonus?
If you still have questions about the stimulus payment or if you want to find about getting yours, I’d like to direct you to contact our Australian tax team on Australia@taxback.com or talk with our staff live online at http://www.taxback.com/chat to find out how taxback.com can help with your stimulus payment.
Hi, i am a full time student, i paid tax and i have received it back, will i still be eligible for the Govt tax bonus ?
Hi, i would like to know how i will be receiving my tax bonus (only)? Will you automatically send it to me or do i need to go and fill in any forms?
Hi Mya and Lui – our Australian tax experts can help you find out if you’re owed this refund. Chat live with taxback.com staff at http://www.taxback.com/chat or email our Australian team on australia@taxback.com.
i was just wondering, i was unemployed at the time of the last financial year, so i did not lodge a tax return. i am now employed and have been since october of last year. Am i eligible for the payment and if so, will i be notified in any way?
Just wanting to know if theres a way to find out if i would be eligible to receive the cash bonus, if so how would i go about doing so my self???
Hi Colleen and Adrianna,
You can both find out whether you are due the stimulus payment by contacting the taxback.com Australian tax team through our live chat at http://www.taxback.com/chat or email on australia@taxback.com.
They will be able to advise you on whether you can claim this back or not.
Why can’t people who earn over $100,000 get the money? We pay high taxes, high Medicare levies and should receive something too. A family might have two incomes of $60,000 and still get it. My husband earns over $100,000 but i don’t work. Not fair at all.
Just wanted to add that my husband works very long hours for his money and it has meant a great deal of time away from home. That hs made it extremely difficult for me to work too. I need to take care of the children and have no parents to help out.
Just wanted to know, when the money is distributed from the 6th of April is it done by alphabetical order or just randomly??
im unemployed and centrelink takes tax from my payments
will i recieve the bonus
hi just wanted to know if there was any way i could get the bonus myself without having to go through taxback.com?
Hi Tracey,
If you have already lodged your tax return for the 2007-2008 tax year, and are eligible for the payment, it will automatically get sent to you to the address or bank account you nominated in that tax return – you don’t need to do anything. If you haven’t filed your tax return for that year however you need to do this before June 30th or you’ll miss out.
If you did use a tax agent such as taxback.com for your tax refund from 07-08 they will automatically receive the payment on your behalf – as they did with your tax refund – and you so need to contact your tax agent to organise a transfer.
@ Patricia Walters – Patricia, we understand your frustration but you must also understand that we are a tax agent and as such we don’t make the rules.
@Tee – The payments are processed the same way your tax returns
Hello,
i am currently a full time uni student with no part time job. i was a full time yr 12 student last year and had part time work where i paid tax but i got it all back. My mother told me that i would get $1800 because i was a full time student while havin a part time job last financial year. i would like to know whether i am eligable for any payments at all? Please reply!!!
Hello,
I am wondering if I am still eligible for a stimulus package if I received a redundancy payout in the financial year 2007/2008.
The amount received combined with work that was done after the payout will amount to over $100,000.
Thank you.
Hi there, if i didnt get a refund, but had to pay back tax (it was about $450), do i still get the bonus?
Just wanted to know, when the money is distributed from the 6th of April is it done by alphabetical order or just randomly??
If you are not working at the moment but have put in your tax within last year do you still receive the tax bonus benifit
@ Carmel Gregurke – To receive the bonus your TAXABLE income must be below $100,000. Since some, or even all, of your redundancy payment may be tax-free, you may still be eligible for the bonus. It is best to consult a tax professional such as taxback.com
@Cam – The Tax Office will NOT offset your tax bonus against this debt, so YES you will receive a bonus if your taxable income is under $100,000
@ visarl – if you have worked at any time during the last financial year and your taxable income is below $100,000 you are eligible for the bonus
i have been told that if earned less than 40/000 dollars i will not be eligble for the tax bonus so can someone reasure me if i am eligble thanks
hi there
i was unemployed, paid tax on centrelink payments, owed a small debt and still received a refund.
Do i get the tax bonus
is it true that loophole indicates that a part time worker/student gets the extra entitlement totaling to $1850?. how do you know if you get that amount. i am a partime worker/student!
i have applied for permanent residency but i am working here from 3 years. Please tell me dat if i am eligible to get tax bonus.
Wonderful… I was worrying cause I have a habit of not doing my tax for the year before until it is actually due for the current year. Now knowing that I have till June the 30th… and on my salary I am still eligible for it… fewf… i’ll go lodge it next week! Thanks Janine! Just the information I was looking for.
Ok so im 18.
I worked all last year and I was on centrelink last year as well till about april but they didn’t tax me and I got all my tax back from my job. I’ve heard that if you were on centrelink you get it but if you got your all your tax back you don’t.
Im confused.
Do I get it??
I have been told if you receive a tax refund last year that you do not receive the tax bonus is this true. I received about $320.00 last year.
im a casual worker and earnt $9257 for the 2007/2008 finacial tax year and lodged my tax return for that year, am i entitled to the bonus payment ?
If I paid tax back last year (approx 250 dollars) how would i receive the payment? I did ring up before the mid March deadline to give my banking details
Hi everyone,
Just another reminder that if you’ve got questions about your specific case and whether you’re owed the refund, please contact taxback.com’s Australian tax team as they can help you find out all you need to know. australia@taxback.com.
Cheers
hey guys,
for those not sure if you’ll get the $900 – basically if you did not receive all your tax refund back in full you will get $900 (assuming your taxable income is less than $80k)
For example, your taxable income was $10k, you had tax withheld of $1k, and had tax payable of $500, and thus you received $500 refund – you will still receive $900. Basically if you paid tax last year whether it was $1 or $1000, and still received a refund – you will still be eligible for tax bonus. As long as you PAID tax!
If you had taxable income of $6k, had tax withheld of $1k and had $0 tax payable – you will not be entitled to tax bonus.
(The figures I’m using are just for examples nothing factual about them.)
Being a full-timer, casual or part-timer has nothing to do with whether you receive the tax bonus – it’s how much you earnt in the last financial yr and how much tax you paid basically.
If you paid tax, but still received a tax refund and earnt less than $80k = tax bonus entitlement
Just because you received a tax refund last year does not mean you didn’t pay tax. It just means that your employer withheld enough money from your pay so you don’t have such a big liability when it comes to tax year. (This is required under law.)
And there have been to types of govt payouts this year – one from centrelink and one from ATO. The centrelink payments have already been paid out – these payments relate to those people receiving payments and allowances from centrelink. If you received a centrelink bonus payment you CAN still be entitled to the $900 ATO’s giving out. They’re are separate payments.
For example if you receive youth allowance and was studying you would have received $950 from centrelink. And while you were studying you had a part time job, earnt $13k and had to pay tax last financial year. This would mean you are eligible for both the centrelink payment of $950 and the $900 ATO bonus payment. Giving a total bonus payment at the end of all the payouts of $1850.
I’m a tax student btw…
I am a low-income earner whose adjusted tax liability was 0 so I don’t get the ATO bonus payment and I’m not registered with Centrelink so I didn’t get any of those payments either. It doesn’t seem quite fair that a few of us are eligible for two payments whilst others don’t get anything … there must be many people like me who didn’t actually earn enough last year to pay tax. Why are we being excluded? Wouldn’t it have been fairer to give it to everyone who filed a return whose income was under the required limits?
I put the last 3yrs of tax in on december 2008 do’s that mean i have to wait longer for the $900
if i got all of the tax back i paid in the 07-08 year, does this mean i get the benefit?
I was wondering if i get two payments? I payed and claimed my tax back last year, and have become a student this year. I have been payed already through centrelink, the $950 with my youth allowance, but i have just heard about the two-payment rumor. Any help appreciated, cheers
Still waiting..
Just want to know if the bonus is paid out alphabetically, by state, by suburb, banks, or randomly etc.. ?
What if I have already received a bonus payment $900 from Centrelink as a full-time student.Also worked last year ,lodged a tax return and I fulfil the above criteria .Can I get $950 from ATO ?
hi,
i messed up my tax return last year (i put my status as non-resident for tax purposes when i actually am – i think there was a miscomm between myself and my boss…) i did eventually appeal to the tax office for last year’s tax return… am i eligible for this?
Pam,
You need to be resident for tax purposes to qualify for the bonus; If the ATO amend your tax return resident status, you may qualify (provided you also meed all other criteria).
Just follow up on your appeal and check your tax return status.
Hi ,admin
how about my question,thx
You can recieve as many payments as you are eligiable for, so for example a full time student working part time would recieve the student payment and the tax bonus
Hi,
I earnt just over $10,000 and had tax taken from interest earned. my tax refund was greater then the tax taken from my income not including the interst earned. When i used the calculator on the ato website it siad i dont get the payment because i got back more tax then was in section A (tax on income) of the notice of assesment. this section A amount didnt include the tax taken from interest eanred as it lists this in section E. If this is right i miss out on the bonus because i got $5 more tax then was taken from my income. Does the ATO take into consideration tax taken from interest?
@Lacey
thanks
Hi
Just wandering do i eligible for the tax bonus i earned tax income $ 9241 but i dont have any medicare or levy so do i eligible for this tax bonus thanks
if when i did my tax return i received all my money back as i did not pay enough will i still get the $900
if when i did my tax return i received all tax money that i paid back as i did not *earn enough will i still get the $900
hi i just wanna know one thing.i have paid the tax $850 and i refunded it all.am i eligible for tax bonus?
cheers
Hi
I lodged my tax last year, and received my tax refund through my bank account as i did it online. But a couple of months later i lost my card therefore i had to cancel the card and get a new accout. Am i still entitled to the tax bonus?
Please Help
I am full time student and worked part-time. I lodged my tax return pretty early last year but I still haven’t received anything. My roommate who was a working holiday got the $900 a month earlier and left the country forever just 2 days after when he got the bonus!
What is going on here?
if i received all my tax back, will i still get the $900.. if not, Y?
I only earned $3500.00 in 2007 / 08 and was deem ineligible for the tax bonus…. what a kick in the guts… the $900 would have went a long way for a guy like me
hi – if i only started receiving youth allowance this month will i still be eligible for the student tax refund of $950?
Hi,
I had filed a ONLINE TAX RETURN for the year 2007-2008 after July 2008 as the online application was available on the 1st of July 2008.
I had filed a ammendment for this TAX RETURN as i qualified for the medicare exemption.
I have received a refund for this amendment last month i.e july 2009.
I stayed in australia from 17th July 2007 till 10th July 2008 so i was Australian resident for TAX purposes also my income is below $AUD 100,000
Will i qualify for the $950 TAX BONUS if yes what is the procedure to get it ?
Kindly reply
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