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:
More interesting to read: Tips for claiming tax back in Australia
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.