How Covid-19 has battered the economy, isn’t hidden from all of us. All are well-acquainted with this hard-hitting situation that has introduced us with a depressing recession time. Therefore, the Australian government is striving hard to help people with lots of initiatives, and Tax Offset is one of them.
Owing to claim Tax Offset, which is around $1080 per annum for singles & $2160 for couples, people are rushing to file tax before time as more and more people are anticipating claiming tax refunds.
However, the government is initiating such steps to bring monetary flow into the Australian economy again. In this way, workers will get some amount to spend, and that incurred expense will turn into someone’s income.
Such steps may help Australia come out from the recession by introducing a significant boost to the Australian economy through supporting jobs.
Around ten million Australians will get the benefit of it and approx. Half of those workers will get at least $1080. But only if they have lodged tax returns this year.
According to treasurer Josh Frydenberg, “ it will give a big boost to people’s budget as they can keep more out of their earning.”
Since the government has introduced low class and middle-class offset ( $1080 for singles and $2160 for couples), millions of Australians are standing in the queue to benefit from this opportunity.
Nearly 991,000 people have visited ATO for lodgment, which is 11% more than the previous year. But only workers who earn less than $126,000 in a year are eligible for the claim. This limit also varies because workers can also secure $255 if their taxable income is up to $37000.
Any worker who earns between $48,000 to $90,000 is eligible for maximum offset- $1080. While workers who earn more than $90,000 but less than $126,000 are also eligible for offset, but they’ll get a refund in the minimum amount.
Mr. Frydenberg mentions that this cut in tax is one of the best options in the wake of Coronavirus, which is likely to create possibilities for people to purchase things easily. It’ll boost spending, which is essential for the Australian economy.
Now you are well-acquainted with the tax offset, which income group is eligible for this tax refund policy. No wonder, the Australian government is following the best approaches to boost consumption, aggregate demand, and money flow in the market through such steps.