Following the High Court’s decision (if you are interested you can find the transcript for this case at austlii), the Tax Office yesterday said 7.4 million people who have already lodged their 2007-08 tax return will begin receiving their tax bonus payments from next week.
Tax Commissioner Michael D’Ascenzo said if people have lodged their 2007-08 tax return and meet the eligibility criteria they don’t need to do anything else to receive the payment.
“We will be progressively sending payments to the address or bank account people nominated as their preference in their 2007-08 tax return – unless they updated those details since then,” Mr D’Ascenzo.
“Eligible people who have received their 2007-08 notice of assessment before 27 March 2009 can expect to receive their payment between next week and 16 May 2009.
“Those who received their notice of assessment after 27 March 2009 can expect their tax bonus payment around four weeks after they received their notice of assessment.
“Please be patient if you don’t receive the payment immediately.
“We are working closely with Australia Post and the Reserve Bank to distribute around 7.4 million payments over the next six weeks.
“Due to the large number of payments we ask that people don’t call us about the progress of individual payments while we are still distributing them.
“However our call centres will be open seven days a week from the 16 May 2009 to resolve any tax bonus payment issues.”
It is not too late for people whose returns are still outstanding, but they must lodge by 30 June 2009 to be eligible unless they’ve already have an extension.
The Tax Office have extended the availability of e-tax until 31 May 2009 for those who want to do their own return online, or people should contact their tax agent as soon as possible.
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
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{ 15 comments… read them below or add one }
Hi, I’m hoping someone can help me please?
I am a full time student, working casually and recieved $900 with my Austudy payment a couple of weeks ago.
Last year I put in a tax return with a taxable income of $11630. I’m not sure whether I’m entitled to both payments. I realise that I am over the $11000 mark and therefore I should get it… but looking at last years notice of assessment, I can’t work out how much tax I actually paid… if any. It’s all very confusing (tax offsets, withholding credits etc etc!??) Which figure is the amount of tax I paid?
Thankyou in advance!:-)
Hi LauraKate,
The figures you need from the Notice of Assessment are simply A + O – G.
Tax on Taxable Income (A) + Medicare Levy (O) – Rebates and Other Credits (G): if any of these items are missing, you can ignore them for this calculation.
If your calculation results in an amount more than zero, you will automatically receive the tax bonus. As Cassie has pointed out below, there is also an online calculator to work this out for you at the ATO website. The link for that is http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=ESB.xr4&go=ok (have your NOA handy).
this is the calculater to see if your eligable you will need to look at last years notic off assesment and enter the right figure to the correspondiong letters it asks for and it will tell u if u get it or not. hope it helps.
has anyone received their 900 dollar tax bonus yet.
@sallly, Hi Sally
A few of our clients received their bonus payments two days ago. I checked the Tax Agent portal and see that mine is going in on the 14th. They are definately being processed…
wheres the tax agent portal …i would like to just see when mine goes in..if…i even get it!
@abii, Hi abii,
The Tax Agent Portal is only available to registered tax agents who have a digital certificate. If you used an agent to lodge your tax return, they should be able to tell you if your payment is arriving within the next few days or not (processing dates are typically only available if the payment is happening within a week or so).
Your eligibilty for the tax bonus is based solely on your 2007/08 income tax assessment. A key thing is that you had an adjusted tax liability.
The surest way to calculate your eligibility for the Tax Bonus is to look at your 2007/08 Notice of Assessment from the Tax Office (that’s the letter they send you after they have processed your tax refund). Do the following calculation with the figures on the right hand side: A + O – G. No other labels matter for this calculation.
A (Tax on Taxable Income) + O (Medicare Levy) – G (Tax Offsets and Other Credits)
If this comes to an amount more than nil, you had a tax liability and will automaticlaly receive the bonus.
Christie,
is there anyway we can PM you our details so you can check when we will get our bonuses? I am desperate for it, have to buy presents for my kids b’day but hve no money and am over the waiting game. Don’t want them to have a bad b’day.
@Billie,
Hi Billie
I’m afraid that agents are only able to access portal service details for their own clients whom they are the properly authorised registered tax agent for. This is strictly enforced to ensure the privacy and security of taxpayers personal details.
If you used a tax agent, they should be able to help you out if a processing date is available. When you actually receive the tax bonus will depend a bit on when you lodged your tax return. We have had a lot of our clients who lodged within time last year, receive their tax bonus already (especially today). Hopefully, yours will not be far away and you can get those birthday presents in time.
Hi,
I received baby bonus last year (around $4300), will that consider as tax offset? I am confused that maybe the baby bonus will be calculated as label G as well.
According to our NOA (A+O-G) we definitely paid tax. Until today my husband and I have not received the bonus yet,we both should be eligible for it and lodged our tax return around July 2008 which is pretty on time.
We used Tax agent last year, but changed our details in early March so we can get the direct deposit to our bank account instead. Will that confuse ATO where they should send the money to?
Your answer will be really really helpful. Thank you.
@Vivi,
Hi Vivi
The baby bonus is a refundable tax offset that is already included in your label G on the Notice of Assessment. The calculation is the same (A+O-G).
In our experience so far, the Tax Office have been very good with redirecting deposits into clients personal bank accounts when they have updated their bank details. The wait is horrible when you know it is coming, but the ATO have said that May 16 is the date most bonus payments should be paid by…. it’s not time to panic yet.
If I were you, I would make the most of the fact that you used a tax agent and give them a call. If your bonus has a processing date, your agent will be able to tell you exactly when you can expect to see it in your bank account. It’s worth noting that not all taxpayers have processing dates yet but a great deal of them do and it might help put your mind at ease to have a definate date to watch for.
Billy
Sorry im a bit confused dont now where to start to get this stimulus money please help
@billy,
Hi Billy,
If you are entitled to the tax bonus, the good news is that you don’t have to do anything except lodge your tax return. So, a good place to start is “Have you lodged your 2007/08 tax return?”
If you have, then the ATO would have sent you a letter after they processed it. This would have Notice of Assessment written on it. On this Notice of Assessment there are codes and figures. Do the following calculation with the figures on the right hand side: A + O – G.
A (Tax on Taxable Income) + O (Medicare Levy) – G (Tax Offsets and Other Credits)
If this comes to an amount more than nil, you had an adjusted tax liability and will automatically receive the bonus. It will be paid into the bank account or to the address you nominated to receive your tax refund.
Does that help or have I just confused you more? Give me a yell if I did.
I just realized i claimed baby bonus in June 08 but received it sometime in July 08, therefore its probably why it was not in our NOA for last financial year but should be there this year instead.
You have been giving us a great information and advice, thank you very much.
@Vivi,
Vivi, I must apologise. It just occurred to me that you are referring to the Centrelink Baby Bonus and not the ATO Baby Bonus (why they had to call them the same thing I’ll never know!).
The Tax Office Baby Bonus (now referred to as the First Child Tax Offset) is only used for people who had a baby between July 2001 and June 2004. These people claim their baby bonus through the Tax Office each year for a period of five years (it’s a maximum claim of $500 each year). This ‘baby bonus’ is included in label G of their Notice of Assessment and does count towards tax bonus calculations.
If you have only just claimed your baby bonus last year, I have to assume this was through Centrelink (previously known as the Maternity Payment). You need not consider that at all for tax bonus purposes. This is an exempt social security payment and completely tax-free.
I’m sorry if I confused your original question, Vivi. When people say “baby bonus” and “tax” together my mind goes right to the First Child Tax Offset – which they still call “Baby Bonus” on the NOA!