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Tax Time! Be Ready To Claim Income Offset

Tax offset, by the federal government in the previous year, created lots of confusion for Aussies, and this year too, in the wake of coronavirus, lots of questions are bursting out in people’s minds.

Coronavirus crisis has shaken up the Australian economy; hence millions of workers are becoming victims of this hard time. That’s why things that could provide them relief from tax have become essential to introduce.

And keeping the current situation in mind, ATO has also decided to help people with income offset claims.

Let’s put light on a few things you must know-

The Offset

As per ATO guidelines, on their official website, a person with income less than $126,000 can get low or middle-income Offset. Bear in mind; the minimum Offset is approx. $255 per annum while the maximum is $1080 per year.

However, the Offset amount is influenced by various contexts, like income level and tax paid by you throughout the year. Also, you can’t expect any offset if your earnings are high.

You can’t anticipate a $1080 direct cheque by the government. Indeed it’s a tax offset that may trim down your tension over the overall tax bill.  However, it’s a bit complex thing, but you can outline it as a massive refund.

According to H&R Block’s director of tax communications, Mark Chapman, since people’s household budget has stretched than ever before. Hence most people are looking ahead for a refund.  As a result, many Australians are standing in the queue to file tax before time with the anticipation of getting income offset.

On the other hand, many employees who lost their job after the hard-hitting of coronavirus are in the lurch. They are facing-off with financial stress, and such a scenario of expecting a refund is a usual thing, and that’s why these people can expect a high refund.

How to claim Offset?

You might be assuming it a head-scratching process. Indeed, it’s much easier to understand. According to ATO’s official website, ATO will automatically include the claim entitled to you in your tax return, and you don’t have any need to care about income offset.

To discover the Offset entitled to you, check out (non-refundable tax offsets) section that you can find in your notice of assessment.

Tax Deadline for $850

If you want to take particular advantage of “Concessional Extended Deadlines,” then you must hire an agent as they are able to introduce you with a loophole. October 31 is the final deadline for tax return lodging. But hiring an agent raises an opportunity to lodge form up to May 15 without any penalty.

People are confused with the ongoing events; they are still unaware of the due date of lodging, filing last year’s tax return, and paying business activity statements”.

Further delays are coming because of unforeseen workload on agents that have triggered after the global pandemic outbreak. Hence, both personal and professional pressure are the leading reasons why meeting the deadlines most of the time becomes difficult for them.

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