Time is fast running out for people who may be eligible for the tax bonus payment to lodge their 2007–08 tax return.

More than 8.4 million tax bonus payments worth $7.3 billion have already been made by the ATO. It’s estimated that there could be another 280,000 people yet to lodge who could be eligible. Tax Commissioner Michael D’Ascenzo has reminded taxpayers that if they do not lodge their return by 30 June 2009, they will miss out on the payment.

Of the 2.2 million tax returns already lodged since the bonus was announced, 318,000 were earlier year returns (almost 2000 people lodged 9 or more years of returns). With less than 2 weeks to lodge before the bonus deadline, it is time to act now…. especially if you have multiple years to prepare. Taxpayers preparing their own return will have to rely on the paper TaxPack 2008 as E-Tax for 2008 is no longer available. You can download a copy of TaxPack from the Tax Office website at www.ato.gov.au.

If you’ll be using a tax agent to prepare your return for you, contact them asap to ensure your work can be complete before time runs out.

With around 500,000 people who may be eligible for the tax bonus payment yet to lodge their 2007-08 tax return, the Tax Office is reminding people to lodge before time runs out.

Acting Tax Commissioner David Butler said it’s important for people who think they are eligible and haven’t lodged to make arrangements now.

“If you don’t lodge your return by 30 June 2009 you will miss out on the payment, unless you already have an extension,” Mr Butler said.

“E-tax is a quick and easy way to lodge your return, but you need to act fast as it will close on 31 May 2009.

“People will still be able to lodge until 30 June 2009 through their tax agent or by post.

“You may want to consider providing your bank account details on your return to get your payment sooner.”

The payments are being made automatically based on details from 2007-08 tax returns.

Call centres are open Monday to Friday 8.00am to 6.00pm to answer any tax bonus payment questions.

How to lodge

You can lodge through e-tax until 31 May 2009 which is available from www.ato.gov.au

To lodge by paper you will need a copy of TaxPack 2008 which can be downloaded from www.ato.gov.au or you can pick up a copy from Tax Office shopfronts.

More information

Detailed information about eligibility for the tax bonus payment and how to lodge is available from www.ato.gov.au or by calling 1300 686 636.

Media release 2009/37

The Tax Office has issued 7.9 million tax bonus payments since early April. As we’ve covered extensively in posts and comments, to be eligible for the payment you had to:

- be an Australian resident for tax purposes
- have a taxable income of $100,000 or less in the 2007-08 financial year
- have lodged your 2007-08 tax return, and
- paid tax in 2007-08.

Where is my payment?
You’ve wait patiently as millions of other Aussies have cashed their $900 cheques. The initial deadline has passed and no tax bonus for you…. now what?

If you lodged your 2007-08 tax return before the end of March 2009 you should have received your payment by now. If you haven’t, make sure you are eligible and also check to see if the payment is with your tax agent or accountant.

If you’re eligible for the payment and lodged your return before the end of March 2009, but neither you nor your agent have received it, call the ATO tax bonus line on 1300 686 636 .

I’m not going to kid you… it’s not always easy to get through on this number and you might be faced with a recorded message. Unfortunately if a taxpayer contacts the ATO on any other line regarding the bonus, they will simply be directed to call the 1300 number anyway. Be persistent!

The call centres are open between 8.00am and 6.00pm Monday to Friday and 9.00am and 5.00pm Saturday and Sunday (weekend hours only apply until 24 May).

A much better option if you used a tax agent to do your return is to have them chase it up for you.

If you didn’t lodge your return by the end of March 2009 you can expect your tax bonus payment within four weeks after you receive your notice of assessment letter.

Haven’t lodged yet? DO IT NOW!
What are you waiting for? If you still haven’t lodged your 2007-08 tax return, you should do it soon, as time is running out! You could miss out on the payment if you don’t lodge your return by 30 June 2009. It’s time to get it done.

Time is running out fast for taxpayers who need to lodge a 2007/08 tax return in order to receive the $900 Working Australians Tax Bonus.

According to the Tax Commissioner Michael D’Ascenzo, “There could be up to 800,000 people eligible for the tax bonus who have not yet lodged their 2007-08 return.”  Wow! I’m shocked. 

Many people seem to still be under the impression that if they owe the Tax Office, Centrelink or Child Support money, they won’t see the $900 anyway. This is simply NOT the case.  This money, unlike tax refunds, will not be used to offset any other ATO or third party debt. You will still receive the bonus. It is not every day that you are entitled to almost a thousand dollars for nothing….. don’t miss the opportunity.

It’s important that if you think you are eligible and haven’t lodged your return that you make arrangements now for your return to be lodged. For people who do their own tax return, e-tax is still available until 31 May 2009 (that’s only a few weeks away so get cracking).

Yesterday the tax Commissioner Michael D’Ascenzo announced the Tax Office has distributed 6.5 million tax bonus payments and is on track to distribute 7.8 million payments by 16 May 2009. The payments are being made automatically based on details from 2007-08 tax returns.

A number of contributers have asked what to do as they have yet to receive their bonus. Unfortunately, at this stage there is not much you can do until the deadline has passed.

“While we are working hard on the distribution of these payments, we aren’t able to provide information about the progress of individual payments until after 16 May,” Mr D’Ascenzo said.

The Tax Office call centres will be open on weekends from 16 May to 24 May 2009 as well as Monday to Friday to resolve any tax bonus payment issues.”

As part of the Household Stimulus Package, Centrelink is paying a one-off $950 Training and Learning Bonus payment to postgraduate scholarship holders.

Unlike the other Training & Learning bonus payments, this one must be applied for.  If you are eligible and have made a claim, the bonus payment will be paid directly into your nominated bank account from 18 May.

Eligiblity

To be eligible for the bonus payment, you must be studying full-time in a higher education degree by research program (masters or doctorate degree) in Semester 1, 2009 and:

• receiving for Semester 1, 2009;
  • - an Australian Postgraduate Award (APA), or
  • - an Australian Postgraduate Award (Industry) (APA(I)), or
  • - National Health and Medical Research Council (NHMRC) PhD Scholarship, or
  • - any other scholarship to which the value is at least $20,427 in the 2009 calendar year
• a citizen or permanent resident of Australia, and
• living in Australia at the date of claim.

Claiming

To make a claim, complete the Training and Learning Bonus for Postgraduate Scholarship Holders(A1931) claim form and return it, along with a photocopy of your scholarship details:

By Post: Training and Learning Bonus
Postgraduate Scholarship Holders Processing Centre
Locked Bag 5
Wallsend NSW 2287

Fax the claim form with evidence of your scholarship to (02) 4985 6022 or lodge it at your nearest Centrelink Customer Service Centre.

Please note that is you have already received a Training & Learning bonus payment or the Back to School Bonus payment for your studies, you will not be eligible for this payment also.

As this seems to be one of those FAQ in my inbox of late, I’ll try to respond here.

As you know, tax bonus payments are being made in stages over a six-week period (this process should be finalised by May 16). Originally, the only information released from the ATO stated these bonuses would be paid according to when a taxpayer lodged their return. Later there was talk of distribution via postcode, however this changed again before being the case once more (you can see why people are confused).

From the start we have seen bonus payments go through our office where one partner has received the payment already and the other has not, despite them lodging together and residing at the same address. Readers and contributers to this blog have had similiar experiences.

Based on this, yesterday I comment that there probably was no reasonable explanation…. the bonus is going out to 7.2 million people after all. It’s a big job! Today I have to take that back after (finally) learning that the selection process ensures all postcode payments are evenly distributed (though some might argue this is hardly reasonable if they’re still waiting. ).

What his means for you is that an even number of payments must be made to each of the randomly selected postcodes for any day.  In practice, this method of distribution allows for the possibility that one partner will receive the tax bonus while the other will miss out… at least until that postcode randomly generates itself  again.  

I know I have previously suggested postcodes do not appear to be connected to the selection process based on what we have witnessed. Now I know differently, though it still doesn’t mean much unless you happen to fall into the certain number of people in that postcode at that time.

Confused yet? Me too.

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.

I can’t tell you how many late-lodging clients have asked this question over the past week! Finally, I have some kind of answer.

As mentioned in earlier posts, the Tax Office will begin paying the Working Australians Tax Bonus from early next month for taxpayers who had already lodged their tax returns. These will be paid in phases with the first batch going to those who lodged on time.  

What about all the people who are only now motivated to lodge a tax return for 07/08?  Well, the ATO have today said that taxpayers lodging their return this month, providing they qualify, can expect to have their tax bonus issued from May 2009.

After spending the last couple of weeks answering literally hundreds of posts, calls and emails regarding the tax bonus, I have to admit that I am happy to see the ATO have finally made an online Tax Bonus Eligibilty Calculator available to the public.

Don’t get me wrong, I love responding to queries (it sure beats calculating all day). Why I am pleased is that clearly people are still confused by the many different payment criteria and government terminology recently thrown at us all. 

The tax bonus calculator will help you to determine your eligibilty for this particular bonus payment and let you know how much you can expect to receive.

In order to use the online calculator you will need to have your notice of assessment for the 2007-08 income tax year handy. This is the letter the Tax Office sent you after they had finished processing your tax return.

You can access the Tax Office Tax Bonus Calculator by clicking the link. I haven’t tested it out yet…. would love to hear your feedback on it.

Having determined that you’re expecting a cash bonus, the next big question becomes “when?”

Single Income Family Bonus $900 paid by Centrelink to recipients of Family Tax Benefit Part B between 11 and 20 March 2009.

Back to School Bonus $950 per eligible child to be paid by Centrelink between 11 and 20 March 2009.

Farmer’s Hardship Payment $950 paid by Centrelink  to recipients of Exceptional Circumstances Relief Payment, Transitional Income Support and Farm Help Income Support between 24 March and 6 April.

Training & Learning Bonus $950 paid by Centrelink between 24 March and 6 April 2009.

Working Australians Tax Bonus $900 maximum to be paid by the Tax Office in stages, starting early April.

Edit to add: Thanks to our contributor, Irene, for letting us know that, according to the latest Centrelink website update, bonus payments will be paid on your normal payment day.

For more details or information on eligibility for each of these one-off bonus payments, please refer to their individual posts.

The ATO have announced that the working australians tax bonus will start to be paid from early April 2009.

Payments are being made in stages with priority given depending on when your 2007/08 tax return was finalised.  

If you haven’t lodged your return yet and you think you will qualify for the bonus, GET IT IN NOW! Your 2007-08 income tax return must be lodged by 30 June 2009 in order to be eligible for the payment.

I’ve had a few emails from people asking about what happens with their tax bonus payment if they have an outstanding tax bill… Do they still get the money?

The ATO have stated that the working australians tax bonus will not be used to offset any other liability. This means that even if you have a current tax debt, provided you are eligible (assuming you haven’t made an alternative agreement), you will still receive the tax bonus as a cash payment made to yourself.

A few small changes to the original proposed payment rates have occurred.  As it stands, the rates for the various bonus payments administered by Centrelink will be as follows:

Spend or save… what will you do with your tax bonus? Join the discussion here.

The Working Australians Tax Bonus is now a $900 tax bonus. The following rates now apply (reduced by $50) and not the previously proposed full bonus of $950.

What’s different?

A $900 bonus will be paid to taxpayers with taxable income up to and including $80,000.

A $600 bonus will be paid to taxpayers with income exceeding $80,000 to $90,000.

A $250 bonus will be paid to taxpayers with income exceeding $90,000 to and including $100,000.

See the full blog post on the tax bonus payment here.

As I am swamped with bonus payment questions, it may take me a day or so to get more detailed information up (I’m afraid the blog is usually left for coffee breaks and evenings… I still have to do some ‘real work’ here). In the meantime, the following table is provided by centrelink.gov.au.

Eligibility at a glance

 Please Note: Eligibility for all bonus payments is based on your
entitlement on 3 February 2009*.

* Adminstrative Scheme

Some people will be paid a $950 bonus under a special administrative scheme.
You may be paid under this scheme if you:

• start full-time study after 3 February 2009 and receive:
  • Youth Allowance (students and Australian Apprentices)
  • Austudy, or
  • ABSTUDY Living Allowance (if aged 16 and over or independent)
• were eligible for Family Tax Benefit Part A on 3 February 2009, for a
  full-time student who was aged 19-20 years (inclusive) on 3 Febuary 2009.

More detail about the administrative scheme will be added to this website
soon.

The Back to School Bonus is expected to assist 2.8 million children aged 4 to 18 in just over 1.5 million families across Australia receiving Family Tax Benefit Part A (FTB-A).

Who will receive the Back to School Bonus?

• Families with children of school age eligible for FTB-A on 3 February 2009 (or who are subsequently determined to be entitled to receive FTB-A on 3 February 2009) will receive the Back to School Bonus for each eligible school aged child (aged 4 to 18 on 3 February 2009).
• Families with dependents in receipt of Youth Allowance (students and apprentices), Austudy or ABSTUDY will receive the Training and Learning Bonus (see Training and Learning Bonus Fact Sheet).
• Families with a dependent full-time student aged 21 to 24 years that are eligible to receive FTB-A on the date of announcement (or who were subsequently determined to be entitled to receive FTB-A on the date of announcement) will be eligible for the Training and Learning Bonus.
• Qualifying full-time students aged 19 or 20 will not receive the Back to School Bonus or the Training and Learning Bonus, but will be eligible to receive a $950 payment through an administrative scheme.

How much is the payment?

• The Back to School Bonus is a one-off lump sum payment of $950 per eligible child.

When and how will it be paid?

• For those eligible beneficiaries receiving FTB-A as a fortnightly payment, Centrelink will pay the $950 bonus from the fortnight commencing 11 March 2009.
• A small number of eligible families receive FTB-A as a lump sum. For these families, the Back to School Bonus will be paid in 2009-10 or 2010-11, after their 2008-09 tax returns have been processed by the Australian Taxation Office.

What if I don’t claim FTB-A fortnightly?

• Most families receive their FTB-A fortnightly; these recipients will receive their one-off payment from the fortnight beginning 11 March 2009.
• If you elect to receive FTB-A as a lump sum, your payment will coincide with the processing of your tax assessment, so the bonus will be paid once your 2008-09 tax returns are lodged and assessed — payment will therefore be in the 2009-10 financial year.

What if I have more than one child of school age?

• You will receive the payment for each child eligible for the payment. For example a family with two children of school age, eligible for FTB-A on 3 February 2009 will receive $1900.

The Government’s $511.2 million Training and Learning Bonus provides a one-off bonus to eligible student social security recipients to assist with the costs for the 2009 academic year.

This will cover students undertaking approved courses that generally include secondary education courses, undergraduate courses, associate diplomas and some other diplomas, TAFE courses and some postgraduate courses.

The Training and Learning Bonus consists of two categories:

Category 1

• The one-off $950 bonus (for 2009 only) for recipients at 3 February 2009 of: Youth Allowance (student and apprentices); Austudy; ABSTUDY and other student and related payments (Sickness Allowance and Special Benefit (under age pension age)).
• If a student attracts the Government’s Back to School Bonus they are not eligible for the one-off $950 Learning and Training Bonus.

Category 2 (Applies from 1 January 2009 to 30 June 2010)

• A temporary supplement to the Education Entry Payment (EdEP) of $950. This is in addition to the existing EdEP payment of $208. EdEP is currently paid to a range of social security recipients who are commencing study, including Newstart Allowance and Parenting Payment Partnered recipients.
• A temporary extension of EdEP to Youth Allowance (other) recipients and relaxation of eligibility to a one month qualifying period for all eligible recipients.

Who will receive the Training and Learning Bonus?

Category 1

• A one-off $950 lump sum will be provided to eligible recipients at 3 Febuary 2009 of:
  • Youth Allowance (student and apprentices);
  • Austudy;
  • ABSTUDY;
  • Payments under the Veterans’ Children Education Scheme (VCES);
  • Payments under the Military Rehabilitation and Compensation Act Education and Training Scheme (MRCAETS); or
  • Families entitled to Family Tax Benefit Part A (FTB-A) for each eligible dependent full-time student aged 21 to 24 years, (on the date of announcement) or who were subsequently determined to be entitled to receive FTB-A on the date of announcement.
• The one-off bonus will also be available to recipients of Sickness Allowance and Special Benefit (under Age Pension age).

Category 2

• From 1 January 2009 until 30 June 2010 recipients of the EdEP will receive an additional $950 payment on top of the $208 they would have received, eligibility to EdEP will be extended to Youth Allowance (other) recipients and the qualifying period for all eligible recipients will be reduced from 12 to 1 month.

The Government also announced a one-off payment of $950 to assist farmers experiencing hardship due to drought conditions and others receiving Exceptional Circumstances related income support.

The Bonus will provide immediate financial support to farmers who are most in need and who may not have sufficient taxable income to benefit from the Tax Bonus.

Who is eligible?

• Eligible recipients will be those who on 3 February 2009 are in receipt of:
  • Exceptional Circumstances Relief Payment for Farmers;
  • Interim Income Support for Farmers;
  • Exceptional Circumstances Relief Payment for Small Business;
  • Interim Income Support for Small Business;
  • Transitional Income Support; and
  • Farm Help Income Support.

How much is the bonus?

• The payment is $950 for each recipient. A single bonus of $950 will be paid to eligible households, irrespective of whether the eligible payment they receive is paid at a single or couple rate.
• It will not be taxable or counted as income for income support purposes.

When and how will it be paid?

• The payment will be made automatically by Centrelink in the fortnight commencing 24 March 2009.
• Eligible recipients do not need to contact Centrelink to receive a payment. Payment will be automatic.

The single income family bonus will be a one-off payment of $950 per family to every family entitled to Family Tax Benefit Part B (FTB-B) on 3 February 2009.

When and how will it be paid?

• The one-off Bonus will be automatically paid by Centrelink in the fortnight commencing 11 March 2009 for families who receive their family assistance as fortnightly instalments, or as soon as practicable thereafter.
• For families who receive their family payments as a lump sum at the end of the financial year, the one-off payment will be made with the rest of their FTB-B payment. The timing of these payments will depend on when families claim.

Will separated parents who are not the primary carer of a child receive the payment?

• Family Tax Benefit is paid to the parent who is the primary carer of a child. This payment will go to that parent. Normal rules that apply to the sharing of Family Tax Benefit will apply to this payment, that is, where there is shared care, and a parent has at least 35 per cent of care, the payment will be shared according to the percentage of care.

What is the family income cut off for FTB-B?

• FTB-B is limited to families (single parent or couple) where the primary earner has an adjusted taxable income of $150,000 per year or less.
• Single parents automatically receive the maximum amount of FTB-B if they have an income of $150,000 per year or less.
• For two-parent families where the highest income earner has an income of $150,000 per year or less, it is the income of the lower earner that affects how much FTB-B the family will receive.
• Eligible two-parent families can still receive some FTB-B if:
  • their youngest child is aged under five years and the lower earner has income less than $22,995 per annum; or
  • their youngest child is aged between five and 18 years and the lower earner has income less than $17,904 per annum.

Can the payment be income managed?

• The legislation enabling the one-off payment will also ensure that where a person’s government payments are income managed, the one-off payment will be managed.