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.
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.
Christie has written 799 awesome articles for us at Alan Lewis Accountants – BLOG
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{ 84 comments… read them below or add one }
Hi just wondering what exactly are our payments altogether in this tax bonus, we have 6 school aged children, and our combined income was around $70000 2007/08
Hi Juliana,
There are 5 different payments as part of the Household Stimulus Package and the eligibility for each one is a little bit different.
Back to School Bonus Payment:
This payment is $950 for EACH eligible school age child (4-18 years inclusive) who you receive family tax benefit part A at 3 Feb. With 6 qualifying kiddies, that’s a generous $5,700 in back to school payments. This payment is administered by Centrelink and expected to be paid between 11-20 March.
Single Income Family Bonus:
This is paid to families who receive some FTB-B at 3 Feb 2009. It is a total of $900 for the household regardless of the number of children you have and in addition to any other bonus payments you receive. So, if you get FTB-B, you’ll also receive the $900 single income payment. Also, due to be paid by Centrelink between 11-20 March.
Working Australians Tax Bonus:
The tax bonus is based entirely on your 2007/08 income tax assessment. It is an individual payment so both your partner and yourself will be assessed separately and you could both receive it if you each qualify. In order to get the tax bonus, you must have had an adjusted tax liability for the financial year. Take a look at your Notice of Assessment (that’s the letter the ATO send you after they process your returns). If your tax on taxable income (item A) plus Medicare (item O) minus Rebates and other credits (item G) is more than nil, you will receive the working australians tax bonus. For your income bracket, that would be a payment of $900. This payment is made by the Tax Office with payments beginning in early April.
For more information on all of these, have a check at the individual blog postings for each bonus type as I’ve provided more detailed there.
IF you qualify for all of these payment, you will receive them all. I hope that helps.
****
just rated it
Hi,
What are the “special rules” applying to taxpayers under 18 in regards to the $900 bonus payment.
In the instance of a Minor with income of $1666 (of say interest or trust distribution income) there is no tax payable.
However, suppose the income of the same minor is $1700, leaving a small tax liability.
Would they have the bonus payment made to them?
Cheers
That’s an excellent question, Matt. Thanks for posting it.
The special rules are similiar to those for the tax treatment of the income of minors.
Only minors who are either an excepted person or who have excepted assessable income will be eligible for the payment. Passive income such as interest or trust distributions to minors do not fall under excepted assessable income. If this was the only income the minor had, they will not be eligible for the Tax Bonus.
If the income was excepted – from working, for instance – the same eligibility criteria is applied as to any other taxpayer.
Your question brought up several other questions in our minds… what if the minor has a combination of both passive and excepted income? For example, if they had $2,000 interest and $5,000 from casual work. If they only had the $2,000 interest, they would pay $150 tax and not qualify for the bonus as the income is not excepted. Yet, if they had $2,000 interest and $5,000 ordinary, the tax bill would still be $150 as they are only going to be taxed on the interest income (the $5,000 being taxed at ordinary rates and under the tax-free threshold). Now, an ordinary person who had income of just $7,000 would never qualify ($11,000 being the threshold with the low income offset). In theory, this minor, HAS met the eligibility criteria by having an adjusted tax liability even though they would not otherwise qualify. Alan rang the Tax Office to ask about this just this morning and they themselves had to say it was ‘grey’ and not fully known at this stage. We’ll have to see how that one pans out….
Have just spoken further with the ATO.
This is a case where it easier to make tax law than it is to implement it. Seeing this is legislation that is barely two weeks old, the ATO are working like crazy to get a handle on it and cover the miriads of questions that are being raised.
Basically, as the legislation is written at the moment, a minor who receives interest, dividend or trust income over $1667 and also receives income from a job (excepted income) will be entitled to receive the bonus. So in the case of the minor who receives $2000 trust income and $5000 casual work income, because there is a tax liability to pay of $150 on the trust income, will be entitled to the bonus because there is an element of excepted income in their taxable income (even though the tax liability was not raised on the excepted income).
However, I wouldn’t advise any minor in that situation to go and start spending the anticipated bonus on a Playstation 3 yet. The Tax Commissioner has the discretion to make determinations on issues that are grey when applied against the legislation… and this issue is certainly a grey one!
Thus, in the case of this example of a minor with a mixture of income, the legislation looks favourable but the final determination by the ATO may not be.
sorry incorrect email address!
See response to your post above.
Hi, I lodged a tax return for 2007-2008 already, and my earnings were under $40,000. So theoretically I’m eligible for a $900 bonus. But I am currently studying full-time, and receiving Austudy, and have not worked since October last year (not by choice), yet I am registered with a number of Employment agencies. Will I qualify for both the student bonus and the worker bonus?. I have looked on the ATO website, and the only stipulations it seems to have is that I lodged a tax return last year, I earned under a certain amount, and that I’m an Australian citizen (which I am). Any help/advice would be much appreciated. Thanks
Hi Addison,
You’ll be pleased to know that your eligibility for the Tax Bonus is based solely on your 2007/08 income tax assessment and your eligibiility for the Training & Learning Bonus is based on your benefit entitlement at 3 Feb 2009.
The Tax Bonus doesn’t affect any other bonus payments at all. If you qualify for both of these payments, you will receive them both.
Hi,
I am a full time student studying Bachelor of Multimedia, 23years old and do not work. My income last year was only $14.00 as a bank interest so I didnt lodge 2007-08 tax return. My family receives Family Tax Benefits A for my brother and myself.
Can I be eligible for the Government Tax Bonus?
Thanks
Hi Jennifer,
I have both good and bad news. The bad news is that you will not be eligible for the Working Australians Tax Bonus.
The good news is that you are a full-time student aged 21-24 years whom someone receives FTB-A for. If this was the case at 3 Feb 2009, the recipient of the Family Tax Benefit should receive a one-off Training & Learning Bonus of $950 for you. This payment is made automatically by Centrelink between 24 March and 6 April 2009.
For more information on the Training & Learning Bonus, see my post here.
Happy studying this semester!
I have just turned 18 this year, last year I only earned $5,854 and paid $486 tax, though I receieved the whole $486 back, I’m now living out of home and supporting myself, would I be eligible for the $900??
Hi Rachel,
Eligibilty for the Working Australians Tax bonus is based solely on your 2007/08 income tax assessment.
Even though your circumstances have since changed, I’m afraid that you would not qualify for this particular bonus based on your adjusted tax liability in 07/08.
Im 23 do not work now and not on centrelink as im living off my bank money from previous yrs but did post my tax which was just under 10,000. Do i receive the tax payment and since im not on centrelink do the tax office do it.
Hi Stefan,
I apologise for the delay in responding…
In order to receive the Working Australians Tax Bonus you must have had an adjusted tax liability for the 2007/08 financial year.
If your taxable income was under $11,000, you would not have had this liability (between the tax-free threshold and the low income tax offset, you would have not have been required to pay any tax for the year).
I’m afraid it sounds as if you will miss out on this particular bonus payment. If you’d like to be sure, you can contact your tax agent or the Tax Office and they will be able to tell you if you are receiving the tax bonus. Alternatively, check out the new online Tax Bonus Eligibility Calculator.
I turned 18 in July 2008. Have a casual job and last year(07/08) earnt $7326, my total tax was $441 of which I received a full refund. Will I be eligible for the bonus?
Hi Liam
In order to be eligible for the Working Australians Tax Bonus, you must have had an adjusted tax liability for the 2007/08 financial year.
As you received all of your tax back – a combination of the tax-free threshold and the low income tax offset – you actually did not pay any tax. Unfortunately, this means you will not qualify for the tax bonus.
Hey, i turned 18 last year and im not sure how much i worked but i paid $756 in taxes, i got $86 back does this mean i will be eligiable for the tax bonus???
Hi Melissa,
You haven’t given much information to work from so I can’t tell you if you are eligible with any real certainty.
I’d guess that a $670 tax liability for someone your age who earned the money themselves would give you a taxable income around $15,500. If that sounds about right, I’d assume you will qualify for the tax bonus.
Hi I know that this question has been asked already but I wasn’t quite sure on it. Between 2007/2008 I was a year 12 student with a job earning less than $7000 and I payed tax. Am I eligible for the tax bonus?
Hi Kate,
Have you put your tax in yet? If you have or when you do, you should receive all of your tax back. On the one hand, you get all your tax back… yay! Unfortunately, this also means you would not qualify for the tax bonus.
As a rough guide, a person needs to earn above $11,000 for the low income tax offset not to knock out all their tax liability.
I would like to know how I go about submitting my bank account details for the $900 tax bonus payment. Is the only method of payment for this tax bonus payment?
Please note that I have also recently moved house from 36 Woolshed Place, Currans Hill, 2567 to 33 Middleton Road, Leumeah, 2560.
Thank you,
Isobelle Anscombe
The Tax Office have set up a Hot Line you can call to update your details for the tax bonus payment. The number is 1300 686 636.
To update your bank details call 1300 686 636 anytime.
You will need:
- your bank account number and BSB
- your tax file number
- your date of birth, and
- the postcode held by the Tax Office, either residential or postal.
To update your address use the online form or phone 1300 686 636 between 8.00am and 6.00pm Monday to Friday or 9.00am and 4.00pm Saturday.
You will need:
- your tax file number
- your date of birth, and
- the postcode held by the Tax Office, either residential or postal.
Details need to be updated before March 15 so it is worth acting on now. I hope that helps.
My 15yr (still a full time student) started work on the 06.06.08. She received a group certificate from her employer stating she earnt $137.00 and paid $22 in tax for the 07/08 financial year. She has continued working for the same company since as a casual and has also earnt a steady income over the last 8 months. We didnt lodge her tax return as she didnt have her TFN as yet and it was only $22 in tax she paid. I have two questions , firstly is she eligable for the $900 bonus and is she able to lodge a tax return now that she has a TFN or is it too late.
Hi Faye,
I’m going to answer your questions in reverse order. First of all, she can and should lodge a tax return now for a couple of reasons.
1) It is required if any tax has been taken from her income (even if it’s just a dollar).
2) She will get her $22 back…. better in her pocket than the Tax Office.
It is never too late to lodge. In fact, it’s not unusual to receive demands for lodgment of a tax return due a decade ago! They eventually get around to them.
With the tax bonus fuss, the ATO have put e-tax back up (it usually goes down 31 Oct) so that more people can lodge late themselves online. If you are comfortable doing this, go ahead and do it. Be sure to fill in the under 18 adjustment so she isn’t taxed at the highest rate. If you would rather use a paper return, you can order these through the ATO or email me and I will send you a a simplified “Short Tax Return” (just a few pages) ideal for your daughter.
Okay, now the bit that isn’t such good news. With a taxable income of just $137 for the financial year, your daughter will not qualify for the tax bonus. The reason for this is that there will be no tax liability. Anyone earning under $11,000 is going to get all their tax back and so hasn’t paid any tax…. hence no tax bonus.
I hope that answered your questions.
Hi,
I just recently graduated from university in my bachelor degree around July 2008. Up until 2008 I never worked before so never paid tax ever, but was receiving youth allowance up till the beginning of 2008. From the period February 2008 to July 2008 inclusive I was on new start payments as I only had to complete another 2 subjects to graduate so was considered a part time student. From about mid July onwards I got into a full time job and as of now am still working for the same company.
Do I miss out on this $900 bonus? For not having lodged a tax return EVER, and also stopped receiving youth allowance from about February 2008 and switched onto new start, which was paid out to me till July 2008 inclusive.
If I do miss out, this will be quite unfair on myself and all the other students who graduated in 2008 and having also not worked before.
Sang
Hi Sang,
In order to receive the Working Australians Tax Bonus you must have lodged your 2007/08 income tax return and had an adjusted tax liability for the 2007/08 financial year (ie. you had to have paid tax to get the tax bonus). Unfortunately, it sounds like you will miss out on this bonus.
You could, of course, lodge a tax return now to cover the period 1 July 2007 – 30 June 2008. Do you have your Centrelink Payment Summary? E-tax is available from the ATO website if you need it. Both Youth Allowance (for over 16 years olds) and Newstart are considered taxable income. If these payments totalled more than $11,000 you could actually still qualify. Hopefully, if it does total more than $11,000, you would have had some tax taken out already. If under $11,000, any tax that has been deducted will be refunded to you.
Hi,
I’ve been working since the start of september last year so I missed out on the financial year but I am working this financial year. Basically, I haven’t lodged a tax return because of this. Will I still be eligible to receive the tax bonus?
Regards, Robert
Hi Robert,
The Working Australians Tax Bonus is based solely on an individual’s 2007/08 income tax assessment.
Unfortunately, even if you are working this financial year, the fact that you didn’t need to lodge or have a tax liaility for 07/08 would disqualify you for the tax bonus.
I wish I had better news for you.
hi,
My younger brother started working in March 2008 but he didn’t lodge his tax return because he only got taxed a bit (I think it was under $20).
Is it too late for him to lodge his 2007-2008 tax return? And will he be eligible to get the $900 bonus payment?
Also, my cousin lodged his tax return last year, but he is non an Australian Citizen or Permanent resident. Is he eligible t o get the $900 bonus payment?
Thank you.
Hi Ina
It is not too late for your younger brother to lodge his tax return. He should do so for a couple of reasons:
1) It is required if any tax has been taken from his income (even if it’s just a dollar).
2) Depending on his income, he’ll probably get all his tax back…. better in his pocket than the Tax Office.
It is never too late to lodge. With the tax bonus fuss, the ATO have put e-tax back up (it usually goes down 31 Oct) so that more people can lodge late themselves online. If he’s comfortable doing this, go ahead and do it.
Okay, now the bit that probably isn’t such good news. Having such a small amount of tax pulled out suggests to me that your brother’s taxable income was not very high at all. If this is the case (say, if it were under $11,000), he will not qualify for the tax bonus. The reason for this is that there will be no tax liability. Anyone earning under $11,000 is going to get all their tax back and so hasn’t paid any tax…. hence no tax bonus.
Your cousin does not need to be an Australian citizen or resident, but he does need to be what the Tax Office call an Australian resident for tax purposes in order to qualify for the working Australian tax bonus.
The ATO use several tests to satisfy the ‘resident for tax purposes’ criteria. The first of these is the resides test. If this test is satisfied, there is no need to apply any others. Secondary tests include the domicile test, the 183 day rule and the superannuation test.
The ATO have an online Determination of Residency questionaire you could use to help work out residency status for tax purposes.
As your cousin has lodged a 2007/08 tax return I expect they will be guided by whether or not your cousin indicated his/her status as being a resident for tax purposes on the tax return. Assuming that your cousin is a resident for tax puposes, eligiblity will then be the same as for any other taxpayer; there must have been an adjusted tax liability.
Hi,
I have noticed that the figure of $11,000 keeps getting mentioned, both here and elsewhere. I had a taxable income of $14,138, but got all my tax back.
I assume this means I won’t be eligible, but it is above the $11,000. So my question is where does the $11,000 figure come from?
Thanks
Hi Ben,
A person who earned under $11,000 could not qualify for the bonus. A person who earned above this amount may or may not qualify, depending on what tax offsets they were entitled to claim.
The reason for the $11,000 figure is a combination of the tax-free threshold and the low income tax offset rate for 2007/08…. both of which are automatic and need not be included on a tax return.
Let’s say I had a taxable income of $10,500 in 07/08. I would not pay any tax on the first $6,000 as this is the tax-free threshold. This leaves me with a tax liability of $675 (15c in the dollar above the $6,000). Tax offsets directly reduce tax liabilities. With this income I would qualify for the full low income offset of $750. This would wipe all tax liability and without even considering anything else, I’d be disqualified for the bonus.
If I earned anything above $11,000 the combination of the tax-free threshold and the low income offset would not wipe my tax liability entirely. However, other rebates/offsets could still reduce my tax liability to nil if I had them. This could be anything from a dependent spouse, pensioner offset, zone rebate, mature age worker, franking credits, baby bonus, medical expenses, entrepreneurs offset, etc…
There is no upper limit to tax offsets you can claim per se so a worker could have quite a reasonable income and still end up with no tax liability. We use the $11,000 as a starting point…. if it’s under that, there was definately no tax liability in 07/08.
I hope that helps answer your question.
Hi,
I’m turning 18 at the end of this year.
In 07-08 I earnt close to $4000 from working.
I lodged my tax return and I recieved $75 back.
Why did I have to pay tax if i earnt less than $6000 ?
Isn’t $4000 under the tax free threshold ?
Am i eligible to receive the tax bonus ?
thanks
Hi Emma,
You don’t mention how much tax you had witheld from your work income???
If you had $75 witheld and you received $75 back, you did not pay any tax (technically).
Now, if you did not receive all of your tax witheld back and your only source of income was from working, I assume prepared your own tax and did not fill in the under-18 adjustment.
Unless this area is filled in, the income is assumed to be non-excepted and taxed at the top marginal rate. If this is the case, I would suggest you do an amendment to your return in order to recoup any tax the ATO kept hold of.
Whether you amend your return or not, I’m afraid you will not qualify for the bonus. 1) You must have had an adjusted tax liability (ie. paid some tax). If your return is corrected (assuming what I have assumed above is correct), you will have received all your tax back.
2) If you do not fix it, the ATO has this income recorded as ‘non-excepted’. In order to qualify for the bonus, minors must have some ‘excepted’ income.
What’s the difference? Excepted income is income you actively earned through working and taxed at your normal rate. If an under-18 adjustment was not made on your return, the income is assumed to be passive, non-excepted income from trust distributions, interest, etc. and taxed at the top marginal rate.
Please let me know if this doesn’t answer your question.
hi i am retired but get pensions from overseas and part pension from centrelink i paid tax last year will i be entitled to the bonus
Hi Shirley
The make-up of your income does not matter for the tax bous. The same eligibility criteria will apply. Basically, you need to have had an adjusted tax liability for 07/08.
Take a look at your Notice of Assessment (that’s the letter the ATO send you after they process your returns). If your tax on taxable income (item A) plus Medicare (item O) minus Rebates and other credits (item G) is more than nil, you should automatically receive the working australians tax bonus.
Hi,
I have read your replies above re under 18 , and not earning enough income and getting all of their deducted Tax back, not being eligible for the Tax Bonus payment.
I am still unsure as on the ATO web site the following info is posted.
“Eligibility
Do all eligible Australian residents who had to pay tax in 2008 receive this bonus, even if they had a credit assessment or is it only for taxpayers who had a debit assessment?
The entitlement to the tax bonus is not based on a credit or debit assessment.
My client was aged under 18 as at 30 June 2008, are they eligible for the tax bonus payment?
If your client was under 18 years of age at 30 June 2008 and they met all of the other eligibility criteria, they will be eligible for the tax bonus payment if they were either an excepted person or if they received excepted assessable income.”
Nowhere doe it mention tax had to be paid , only that you have “excepted Income” in definition = employment income.
Hi Robert,
I disagree that there is no mention of tax having to be paid. The fact that “they met all of the other eligibility criteria” means they would have to have lodged their tax, been a resident for tax purposes and, most importantly, had an adjusted tax liability in 07/08. Otherwise, they would not meet all the “other” eligibility criteria and not qualify for the tax bonus.
Tax agents have had lists of their eligible tax bonus clients for some time and I can say with some confidence that under 18′s who did not have an adjusted tax liabilibity (resulting only from excepted income) in 2007/08 will not be receiving the bonus.
If you are still in doubt, I suggest you give the ATO a call. Each situation is unique and factors such as some portion of non-except income can make a significant difference when it comes to minors.
Hi , in answer to your comment on how you will be paid the bonus , if you used a tax agent , ITP have confirmed with my account it will be going directly in as did my refund last year.
Hi,
i was just wondering if i will receive any tax bonus of any sort.
during the 07/08 tax period i was in year 12 and received all of my fax back. at the begining of 2009 i moved out of home and to a new city to commence uni. i do not receive any centerlink payments.
will i be able to receive a low income or training bonus, or will my parents receive a back to school bonus for me?
thanks
Hi Phillip
The Working Australians Tax Bonus is based solely on an individuals 2007/08 income tax assessment. One of the main qualifications eligibility is determined by is that there must have been an adjusted tax liability for the financial year. In ordinary terms, this simply means that after tax rebates you still paid some income tax for the financial year.
In reality, for this to happen taxable income would need to have been above $11,000. This figure takes into account the tax-free threshold and the low income tax offset in 2007/08. Basically, anyone who received all of their tax back, would not have had an adjusted tax liability and would not qualify for the tax bonus.
I’m afraid the news I have for you is not going to get much better. The Centrelink-administered bonus payments (such as the Training & Learning bonus, etc) depend upon you having an entitlement to certain Centrelink benefits at 3 Feb 2009. Without knowing what, if anything, your parents were claiming for you at this date, I’m unable to offer much else. I’d suggest you give centrelink a call and just see where you stand. They will be better able to advise you than I when it comes to Centrelink entitlements.
Hi,
Can you please explain exactly what i need to receive the tax bonus.
I turned 18 last October, work casual, earned around $6000 last yr and received $30 tax back. Ive been working in the same place since 2005 so im not new to it etc. I’m confused as to what i need to be eligible as i get money from my parents etc. Im not sure if the $30 back was the full amount, is there any way to find these things out ourselves over the internet?
thanks.
Hi Happy,
If you still have your Notice of Assessment letter from the tax Office, you can easily check this yourself. The NOA is what the Tax Office send you after they have processed your tax return… if you opted for a cheque refund, the cheque would have been attached to the bottom of this letter.
There are assessment codes down the right-hand side of the letter corresponding with various figures. The calculation is 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 (it’s unlikely you would have a label O, for instance, so jyou would ust use A-G if you do not have O).
If the result of this calculation is more than nil, you will automatically receive the tax bonus payment. You can also check this online using the Tax Office’s Online Tax Bonus Calculator located at http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=ESB.xr4&go=ok.
Now, if you no longer have your Notice of Assessment, you can simply give your tax agent or the ATO a ring (13 28 61) and they will be able to tell you if you are receiving the bonus.
I hope it’s good news for you!
hi////i am under 18 yrs of age and earnt 11700 in 07/08 and paid 800 in tax…im pretty sure i didnt get all of it back…do i get the tax bonus?
Hi Joshua,
Please see my response to HappyPerson directly above. I just typed it when I noticed it will also apply to yourself.
Being under 18, there is an additional condition to be met for the tax bonus on top of the usual eligibility criteria. That is that some of your $11,700 income must be what is called ‘excepted’. This simply means that it was not all passive income from trust distributions or interest but that you earned some of it yourself. Assuming this is the case, simply follow the directions given to Happy.
Hi,
im a 16 year old from NSW,
i worked under a traineeship at my local bowling club for around 8 mounths.
i lodged a tax return and recived tax back i am wondering do i get the tax bonus?
Hi Henry,
Did you receive all of your tax back?
One of the main qualifications eligibility is determined by is that there must have been an adjusted tax liability. This simply means that after tax rebates you were still out of pocket some tax for the financial year.
In reality, for this to happen taxable income would need to have been above $11,000. This figure takes into account the tax-free threshold and the low income tax offset in 2007/08. Basically, anyone who received all of their tax back, would not have had an adjusted tax liability and would not qualify for the tax bonus.
I hope that helps.
hi its me joshua again…i ran the tax office…they said i was ineliglible,,,,cause they gave me all my tax back…but i made ova 11000 last year…wat can i do about this??
Hi again, Joshua.
If you received all of your tax back, you had no adjusted tax liability and therefore, you are not eligible for the tax bonus.
Let me clarify a bit more. We use the $11,000 as a starting point because we know that almost anyone with a taxable income under this amount could not qualify as they would not have earned enough to generate a tax liability.
Now, for people earning above $11,000 some taxpayers will qualify for the tax bonus and some will not. This will depend upon what deductions they had (as these reduce their taxable income which tax payable is first based upon) and, more importantly, which tax rebates they claimed (as offsets directly reduce any tax liability).
If a taxpayer had a taxable income above $11, 000 for the 2007/08 financial year and only received the full Low Income Tax Offset of $750 at label G on their Notice of Assessment, they could still scrape in for the bonus. If, however, they claimed other rebates also such as medical or entrepreneur’s, or they had franking credits, etc… this would likely reduce a low-income earner’s tax liability to zero and they would miss out on the bonus as they ultimately would not have paid any tax.
You should be able to see what tipped it over the edge for you from your Notice of Assessment letter.
I hope that makes some sense. In it’s simplest form, if you did not pay tax, the ATO are correct that you will not be receiving the tax bonus. I’m afraid that there is not much else that you can do.
I wish I had better news for you.
okay…but i didnt have any deductions??
Hi Joshua,
Your notice of assessment will tell you what your taxable income and tax offsets (label G) actually were. If I had to take a guess, I’d say that perhaps some of your income included Youth Allowance or another commonwealth payment and you so you also probably received an amount of beneficiary tax offset aswell as the usual low income tax offset. Does this sound like a possibility?
Without knowing what your label A and G are for 07/08, I can only really guess at why you haven’t qualified.
i just want to say, last year was a bad year for me and i earnt under $11000 so i cant get the $900, so now i am stuck paying off that debt as a tax payer this year, i feel like it is yet another kick in the teeth .this is not fare at all. if i have to pay it off i should get it. what do u say about that?
@Andrew, Hi Andrew,
I am not sure that I understand where your tax debt has come in? Perhaps if you could clarify that for me?
If you do have an outstanding tax debt – provided you are otherwise eligible for the tax bonus – it will not be used to offset your previous tax liability. However, as you were a low income earner in 2007/08, I’m surprised you say you have a debt. If it is a result of a tax liability related to the 07/08 year (not a HELP repayment or Centrelink overpayment, etc), you should still receive the tax bonus.
yeah i earned like 10800 or sumfin but i was on centerlink youth allowance until 22nd june last year so like other centerlink ppl got it y not me i been on it ages. yeah i work ft now.
This stimulus package is a load of rubbish, i am a student and i work part-time and i don’t get anything. What are people like me meant to do? i just missed out on money from the taxation office and i don’t qualify for any money from center link and i get no money off my parents, how can i afford books for school or a laptop or any of these important things?
@Bree,
Hi Bree,
Our office feels sorry for uni students such as yourself above all others when it comes to this particular package. If you are not on Centrelink becuase you do a bit of part-time work (or your parents earn too much), you miss out. That does not make a lot of sense to me as you’re one of the few students not costing the Government additional money in Youth Allowance payments.
We’ve all been there…. studying, working, no support, struggling to pay for overpriced texts you’ll only use for a single semester. It’s hard. I imagine it is even harder when you feel others around you are being rewarded with bonus payments you miss out on. Hang in there, Bree. There is tremendous sense of pride in knowing that when it is all over, you accomplished something in trying circumstances and you did it all on your own.
Hello. Just trying to check my eligibility for the tax bonus. I’m unable to use the rate calculator as I’ve misplaced my notice of assessment. I have 2 jobs (1 salary, 1 sole trader) and filed my tax return for both combined with a total income earner of approx $22,000. The tax withheld from my salary job for the year was $1778, I only received $300 of this back following my tax return. The added income from my work as a sole trader (roughly $5000 for the year) brought my returned tax down considerably. Am i still eligible for the stimulus bonus?
@jp123,
Hi jp123
I’m essentially going to be guessing here depending on which offsets you actually claimed, though it seems clear you did pay tax for the financial year and should qualify.
As your business income wasn’t huge, even with the entrepreneurs tax offset (around $187 on $5,000), you should still have had an adjusted tax liability. This, along with the low income tax offset, sounds as if it is all you might have claimed which would result in a liability of approximately $1463, giving you a tax refund of around $315. If that sounds about right from what you can recall, you will be eligible for the tax bonus.
I hope that helps.
Hi
I am just trying to figure out where I stand on this bouns payout. I am an Australian resident and was notified by the immigration department of my residency status on 28th Sept. 2008. Prior to that (aprox 18 months) I was on a bridging VISA with permission to work in Australia and held a valid tax ID number. I filed my first tax return this last year (07-08 finacial year) My taxable income for that time was only about 15000 (unsure of exact amount as I have misplaced my tax paperwork) Due to my lack of knowedge with the Australia taxation procedures I used a tax agent to file for me. My tax return was aprox 1000.00 and paid to me via a check from the agents account and not directly from the ATO. Based on this information can you shed some light on all of this bonus stuff for me??
Thanks Heaps
Kim
@kaycee,
Hi Kim,
The great thing about having used the services of a tax agent is that they will be able to tell you if you are receiving the bonus and how it will be paid.
Your eligibilty is going to depend somewhat on how you were taxed… were you a resident for tax purposes when you lodged the return, etc. It sounds as if you were, but as your eligiblty is also going to hinge on whether or not you had an adjusted tax liability (depending on which tax rebates you were able to claim), I suggest you give your agent a ring and get a clear answer.
With regards to bonus payments where clients have used fee-from-refund and their tax return went into the accountants bank account, it is possible that your tax bonus might also go to your agents trust account and they will issue you a cheque themselves. Agents had an option to direct these payments elsewhere but may not have had personal bank details or current addresses of all their clients in order to do so.
Best of luck with it… I hope you have an extra $900 coming your way!
My accountant seems to think that I do not qualify for the bonus as I did not pay a medicare levy. On my tax assesment I have an A amount and a G (as well as E&L) but no O amount.
The A amount is around 16K and the G amount is only the 750 Low income tax offset.
Is my accountant correct?
@grant,
Hi Grant,
I think you may be mixing up label A. Item A should refer to the ‘Tax on Taxable Income’ (ie. how much tax you should pay before offsets and credits). A $16K tax liability equates to a taxable income of around $72,000. As you received the full low income tax offset, I have to assume that’s not right and, possibly, your taxable income was $16,000. If so, tax on this (item A) would be about $1,500.
Now, from what I can tell (assuming your taxable income was $16,000 and label A around $1,500), you should still be eligible for the bonus. Whether or not a taxpayer generates a medicare liability, in itself, is of no consequence. The main thing is that you had an adjusted tax liabilty. Even without the medicare levy, if the low income offset was all you had at item G, you should still have a tax liability and automatically receive the tax bonus.
As you still have your Notice of Assessment letter, check the online tax bonus calculator at the ATO website. I’ll be interested to know how you get on with it.
As a side note, if your accountant did your tax return for you, they should be able to tell you with certainty whether or not you are going to receive the bonus (all registered tax agents should have received a list of their eligible clients from the Tax Office prior to April).
I called ATO this morning to ask about the bonus. I have a similar case to yours, where A = 289, G = 289. The ATO agent said that I do not qualify for the bonus since I got all my tax back for 2007-2008 (because I was/am low income earner).
And because I am exempt from the Medicare Levy (being single, low income earner), I was not liable for any of that.
I find this ridiculous because if I am at the lower end of the scale and do not qualify for the bonus, then who is this bonus for exactly? I was under the impression that it is for the people who need it the most (like myself).
Sadly, I can not get any assistance from Centrelink because my scholarship is above the maximum threshold for Austudy, but below the threshold required (20,427) for the Training and Learning Bonus for Postgraduate Scholarship Holders.
What the!?
Hi Eddie,
In all of the Tax Bonus hype what the media failed to report is that the lowest income earners would be excluded (for instance, if taxable income was under $11,000 that person could not qualify).
Who is this bonus for? The Government target this bonus specifically to taxpayers. No tax liability = no tax bonus. The thinking behind this was that people who missed the tax bonus would have already benefit from one of the other Centrelink bonus payments. Unfortunately, as you’ve discovered, this is not always the case.
As with any mass-scale measure it has definate shortfalls in targeting and delivery. A double-income family with three school aged children could potentially receive $5,550 under the Household Stimulus Package while someone in a more challenging financial position, yourself for instance, has no entitlement. I have to agree that this does seem ridiculous.
I’ve been trying to figure out for weeks whether I would get the stimulus money – and couldnt really get any straight answers, found the ato website info really confusing.
Finally understand after reading this page – pity i guess i wont get it – worked part time with school then uni in 07/08 and earnt around 9000, but didnt pay any out of pocket tax, damn it
@ash,
Sorry you’ll miss out on the bonus, Ash, but I’m very glad to hear we’re less confusing than the ATO website.
this is the biggest load of shit. students study there arse off whilst working to pay for food fuel etc and bums who are on centrelink and studying(not working) are getting paid 900 plus there recieving money still from centrelink. i thought we lived in an equal society by which those who work hard get rewarded. these words cant convey how angry i am.
Hi Dylan,
I probably wouldn’t get away with putting it quite as colourfully as that, but I certainly share the sentiment. I had a bit of a rant not too long ago about the same thing in another thread. I won’t get myself all worked up again… I’ll just paste some of the key points I wanted to make. What are you studying, by the way (I”m a sticky-beak, aren’t I?).
As you can probably tell, I agree that students who try to earn a bit of income to help fund themselves (as mature and responsible citizens) are often left worse off. Clearly, there is something horribly wrong with that.
hi i was wondering if i will be able to get a tax bonus too provided that i already got a learning bonus from centrelink? i was a full time student but i also worked during that time and did pay tax although i am not sure how much i paid tax…
will i get the 900 dollars bonus too?
thanks
@lola,
Hi Lola,
The Working Australians Tax Bonus is based solely on each individuals 2007/08 income tax assessment. The Centrelink-administered bonus payments are separate altogether and your entitlement to one of these will not in itself affect eligibility for the tax bonus. If you qualify for the tax bonus, it will not matter how many other bonus payments you have already received.
In order to be eligible for the Tax Bonus you must have lodged your 07/08 tax return (or do so before June 30), be an Australian resident for tax purposes, earned under $100,000 and had an adjusted tax liability. This simply means you were out-of-pocket some tax for the financial year after rebates.
In reality, for this to happen taxable income would need to have been above $11,000. This figure takes into account the tax-free threshold and the low income tax offset in 2007/08. Basically, anyone who received all of their tax back, would not have had an adjusted tax liability and would not qualify for the tax bonus.
In order to check your eligiblty, you would need to find your Notice of Assessment for 2007/08 (or give your tax agent a ring if you used one). This is the letter that the Tax Office sends to you when they have processed your tax return. There are assessment codes down the right-hand side of the letter corresponding with various figures. The calculation is 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 the calculation results in an amount greater than zero, you will automatically qualify for the tax bonus. So provided tax on taxable income and medicare together are bigger than your rebates/offsets (ie. at the end of the day, you still paid some tax) you will receive the bonus.
Unfortunately, most students will miss out on the tax bonus due to their low income status leaving them without an adjusted tax liabiliy.
hi i just want to know WHY the tax agent who i went through last year has deducted $28 from MY tax bonus . is that allowed ?
Hi Angela,
Your tax agent should not have done this without your specific written consent. I would contact their office, remind them of this fact and suggest they refund your $28 (which I am assuming is a processing fee?).
If this gets you nowhere, ask which professional body they are associated with if you do not already know (NIA, CPA, CA, etc). Your next step would be to contact the professional body and report your concerns. Let me know if you need contact details for any of these.
The National Institute of Accountants (NIA) specifically contacted its members to say that fee-charging for processing tax bonus payments would be considered an ethical violation. CPA Australia has stated that there is no rule or regulaltion to prevent its members from doing this, but reminded them of APES 305. Basically, section 4 of APES 305 Terms of engagement indicates that the basis on which fees will be charged should be agreed with the client in a document and with enough notice to allow the client to make alternate arrangements if they did not wish to incur this new fee.
I’d be interested to know how you get on asking for a return of your $28.
I wasn’t 18 before june 30 2008. But I am 18 now and I paid all the right amount of tax.. Do I get the bonus?
Hi Jeremiah,
As you were under 18 during the 07/08 year, there is an additional condition to be met for the tax bonus on top of the usual eligibility criteria. That is that some of your income must be what is called ‘excepted’. This simply means that it was not all passive income but that you earned some of it yourself. Assuming this is the case, the same eliigibility criteria will apply to you as to any other taxpayer.
You must have lodged your 07/08 tax return (or do so before June 30), be an Australian resident for tax purposes, earned under $100,00 and had an adjusted tax liability. The tax liability is a key thing here which means you were out-of-pocket some tax for the financial year after rebates. Basically, if you got all of your tax back, you would not qualify.
Take a look at your Notice of Assessment for 2007/08. This is the letter that the Tax Office sent to you when they had processed your tax return….if you opted for a cheque refund, the cheque would have been attached to the bottom of this letter. There are assessment codes down the right-hand side of the letter corresponding with various figures. The calculation is 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 the calculation results in an amount greater than zero, you qualify for the tax bonus. So provided tax on taxable income and medicare together are bigger than your rebates/offsets (ie. at the end of the day, you still paid some tax) you will automatically receive the tax bonus.
I hope that helps.
Hi, My twin daughters were under 18 on 30th June 2008 last year but did earn 11147 and 11,265 taxabel income. After doing the calulations on the web page and looking at their assessment they did pay tax (barely) however we have all received our bonus in our house and it seemed to go by postcode and with one week left they have not. This is really unfair if they dont. They dont get youth allowance, we cant support them at uni because we have lost our jobs, and they are busting themselves working. And we get nothing for FTB. The income was all from working with 95 interest
Hi Christine,
Don’t panic yet. It is not uncommon for members in the same household to receive their bonus payments at different times (here’s why).
Now, if they did have an adjusted tax liability and it looks like the bonus is not coming, the first thing that springs to my mind is that the under-18 adjustment might not have been filled in correctly on their tax returns.
Let me explain how that can make a difference here.
In order to be eleigible for the tax bonus, under 18′s have an additional criteria to be met. That is, some of their taxable income must include what is called ‘excepted’ or they must be an ‘excepted’ person. For most youngsters this would mean that they earned the money themselves and it wasn’t all passive income (such as interest or trust distribution, etc). It sounds as if your girls qualify for the bonus from what you’ve said. If they used a tax agent, the agent will be able to you if they are receiving the bonus and when to expect it. If not, would you have a copy of their tax returns on hand to check that Item A1 has been filled in properly?
I know that as time ticks down it is hard not to become stressed. If it helps, there are still over 1.3 million tax bonus payments to be distributed. It’s very possible that your daughter’s bonuses will still arrive before the May 16 deadline.
On the chance that they do not, please do post again and I will tell you how to proceed. Also, if the adjustment has not been filled in properly, this will need to be fixed up ASAP (before June 30) so post again or contact their tax agent (if they used one) right away.
I’m so sorry to hear you have lost your jobs, Christine. Best of luck in your job junting efforts.
Hey there:)
im only 16yrs old and this tax bonus is doing my head in
i just wanted to know if i am eligable for it?
i lodged my tax for 07/08 and received most of it back ?
ive read through the ATO site but it tells me i have to be an expected person what does this mean?
Cheers,
Hopefully you can help me:)
Hi Tasha,
As you’ve discovered, under 18′s, along with the usual eligibilty criteria, must have had excepted assessable income or be an excepted person. Excepted income is money you earned yourself such as wages. This differs from non-excepted income like a trust distribution or interest payments (which, technically you didn’t earn by your own efforts).
An excepted person usually either works full time or is on some kind of disabililty support pension. There are other categories but these would be the most common.
Basically, if you worked for some of your taxable income, that money is considered excepted for income tax purposes and is taxed at the usual marginal rates. Let me know if I just made your head spin more and I’ll try to explain things better (I’m afraid that my own brain is almost asleep at the moment).
Hi,
Well done for this blog. It looks like it has been providing answers and most importantly, certainty, for quite a number of people who are misled by the ATO’s stimulus bonus representations. I now realise I will not get anything under the stimulus package.
Like many others, I was a full time student last year receiving youth allowance. I graduated at the end of the year, and have since commenced full time work on a low salary (the GFC didn’t help). My taxable income for last year was roughly $7000. Therefore, the assistance provided by the low income tax offset had saved me a nominal amount.
I have been penalised for getting out of the welfare system and have lost confidence in the Government’s ability to draft legislation effectively. This stimulus package failed many of us (graduates of 2008) and I think the Government should recognise and acknowledge this. Understandably, the Federal budget has been their prime focus in the last few months, but that doesn’t excuse them at all from their past mistakes.
To make it worse, I have seen deceased estates being issued the bonus! Dead people are getting assisted by this package, if not their beneficiaries, who could literally be anyone they appoint in their Will. I find this ridiculous.
It’s a flawed system, and the Government needs to fess up about it. I can only hope the media doesn’t forget about it, and really follow up on the issue.
Thanks for providing me with a place to vent.
Hi
Last year I earned $20k salary and wages, but due to high university fee deductions I received all of my tax back. I understand the ATO does not look kindly on those seeking to minimise their tax, but is there anything to stop me from amending my tax return to reduce my deductions enough so that i qualify for the workers bonus?
Thanks
Hi Ben,
There is nothing to stop you from trying but I wouldn’t like to predict the ultimate result of it.
You have to understand that the ATO have been bombarded with amendments since the Tax Bonus annoucement from people seeking to do the same thing. I’m keenly awaiting the outcome as penalties and interest charges could be applied (we have a bit of a bet at the office over whether they will be). Certainly taxpayers could be drawing unwanted attention to themselves and risking an audit (after all, you made a deduction claim and now you’re effectively having to ‘take it back’).
Amendments are rarely processed in a timely manner (usually 12 weeks at the best of time) so you could be waiting a while for a decision.
Personally, I wouldn’t do it. It’s a gamble.
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