The Rudd government signed off on a $42 billion dollar stimulus package in February 2009 with hopes of reviving and encouraging long term economic growth in Australia.
In the wake of a global recession, Australian tax payers will be getting a tax bonus payment from the government to help struggling low to middle income earners as well as encourage spending to get the economy flowing again. It is no surprise that everyone has decreased if not stopped spending with massive retrenchments happening globally and nationwide. Job uncertainty is definitely in the fore front of our minds.
New businesses are slow to come by and even managers have strict budgets to follow and are reluctant on committing to long term spending. This downward spiral is expected to continue throughout 2009 and many fear the worst is yet to come.
The details of the tax bonus payment are:
- You will need to have lodged your 07/08 tax return to receive payment directly into your bank account or a cheque sent to your address if you are eligible. Make sure your details are up to date. You can update your details by visiting the ATO website (you have till 15th of March to do so).
- You are eligible if you:
- Earned under $100,000 (taxable income) in 07/08
- Paid tax (greater than $0) in 07/08
- Your 07/08 tax return is lodged before 30 June 2009
- Full eligibility details can be found on the ATO website
The tax bonus payment brackets are:
- If your 07/08 taxable income is under $80,000, you will receive $900
- If your 07/08 taxable income is between $80,001 and $90,000, you will receive $600
- If your 07/08 taxable income is between $90,001 and $100,000, you will receive $250
- If your 07/08 taxable income is over $100,000, you will receive $0 and a pat on the back for your tax contribution
You can expect these payments to be progressively handed out starting from early April 2009.