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.
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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{ 6 comments… read them below or add one }
Hi Im on a invalid pension and I
work as a sole trader part time
fixing computers and laptops would I be eligible for the tax bonus
I have put in tax returns bas on a regurlar monthly basis
can you help me at all
HI Rimtech
The Working Australians Tax Bonus is based solely on an individuals 2007/08 income tax assessment. I am going to assume you are a resident for tax purposes and have lodged your 07/08 tax return.
One of the main qualifications eligibility is then determined by is 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 that year.
Being a sole trader, it’s difficult for me to guess at whether or not you would qualify as this will depend on if your business is running at a profit or loss, whether you claimed the entrepreneurs tax offset, etc…
You can check:
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. If the amount is more than nil, you will automatically receive the tax bonus payment.
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 you do this calculation and you come up with a figure (anything more than zero will suffice), you will automatically qualify for the tax bonus. If you need any help with this, just give me a yell.
Hello
I too have just recently lodged my 2008 tax return but only paid $8.00 tax with an income of $4,000, as I am currently studying and am over 18 years of age. Do I qualify for the tax bonus.
Thanks in anticipation
@Drubula Isascutinulla,
Hi Drubula
You haven’t given a lot of information to go by but I’d assume you will not be taxable with an income of $4,000 and probably receive that $8.00 tax back. In order to qualify for the Working Australians Tax Bonus, you must have what they call an adjusted tax liability. This means that after your applying any rebates, you still paid some tax for the financial year. For most people, this would mean they need to earn at least $11,000 just to account for the tax-free threshold and the low income tax offset.
When you get your Notice of Assessment take a look at the figures on there. If A+0-G is more than nil, you will automatically qualify.
I put in my tax return way beck in July08 and still have not received my payment. So much for being early off the mark for those who lodged on time
@Julie,
I feel for you, Julie. It’s got to be frustrating when you are on-the-ball and yet you’re still left waiting.
I think I mentioned elsewhere on the blog this week that we’ve actually seen a tax bonus arrive for a taxpayer who had only lodged within the last couple of months. This has me convinced that the bonus payments are not strictly being processed according to lodgement dates.