Tax cuts to give 11million Australians more money in their pockets this month

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Tax cuts to give 11million Australians more money in their pockets this month – so when will YOU get the cash?

  • Average income earner on an $80,000 salary will get around $2160 cash back
  • those who make $60,000 will get around $2415 extra for this financial year
  • A portion of the tax cut will start to be seen from as early as this week

About 11million Australians will see extra cash in their bank accounts as early as this month under tax cuts revealed in last week’s Federal Budget.   

The average income earner with an $80,000 salary will get around $2160 cash back for this financial year, while those who make $60,000 will get around $2415 extra. 

‘Australians will have more of their own money to spend on what matters to them, generating billions of dollars of economic activity and creating 50,000 new jobs,’ Treasurer Josh Frydenberg said in his Budget speech.

The average income earner with an $80,000 salary will get around $2160 cash back for this financial year, while those who make $60,000 will get around $2415 extra

The average income earner with an $80,000 salary will get around $2160 cash back for this financial year, while those who make $60,000 will get around $2415 extra

Australians who get paid weekly, fortnightly or monthly could see their money as early as this week depending on their employer

Australians who get paid weekly, fortnightly or monthly could see their money as early as this week depending on their employer

Australians who get paid weekly, fortnightly or monthly could see their money as early as this week depending on their employer

H&R Block’s director of tax communications Mark Chapman said a portion of the tax cut will start coming into Australians’ pay packets from as early as this week.

Workers don’t need to do anything to see this part of their tax cut.

Mr Chapman said Aussie workers won’t see the other half until mid-next year, depending on when they file their 2021 tax return. 

‘It will be made up as a mix of payments into your salary and another payment as a lump sum in your tax return next year,’ he told news.com.au

Australians who get paid weekly, fortnightly or monthly could see their money as early as this week depending on their employer.  

Mr Chapman said people will see the benefits in their pay packet ‘pretty soon,’ but warned it comes down to when employers start applying the cuts to salary payments.

Employers will see the payments paid directly into their salary as less tax paid for each pay cycle until the end of the financial year.  

‘It could be four or five months of payments lumped into your tax return next year, so it might not be an exact 50-50 split,’ Mr Chapman said. 

Employers will see the payments paid directly into their salary as less tax paid for each pay cycle until the end of the financial year

Employers will see the payments paid directly into their salary as less tax paid for each pay cycle until the end of the financial year

Employers will see the payments paid directly into their salary as less tax paid for each pay cycle until the end of the financial year

‘We’re in the middle of October, already a third of a way through the tax year. Because we’ve all been paying tax for those few months at the old rate, the ATO won’t be able to catch up and factor in those payments this year, so that bit will come in as a lump sum next year.’

Mr Chapman said the lump sum won’t come until workers file their tax return next year. 

Workers can expect to see about $20 a week extra, depending on their income. 



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