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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