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.
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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{ 11 comments… read them below or add one }
My wife and I had all types of theories until I read you’re post. First we thought it was in surname order (us starting with V) meant we had to wait until my workmate with a V surname got his last week
So no news for me just yet but have another 2 weeks to go.
@Ian,
LOL. I relate to that. First we were informed it was based on lodging date. Then one of the very first bonus payments to come through the office was for a taxpayer who had lodged as recently as a month before while hundreds more who lodged July 2008 were still waiting.
Then we thought it must be alphabetical as bonuses appeared for the first few days to be for surnames early in the alphabet. This quickly proved incorrect.
Then we were told the ATO were using a postcode distribution. Given that we were seeing no obvious postcode distribution amongst payments, I was convinced this could not be right.
It has been one big guessing-game from the start… at last, there is some kind of explanation that fits.
I am a low income earner, have always paid tax,and lodged my 07/08 tax return, of course i have been expecting to receive the stimulus package. I have just heard along the grapevine that because my refund for my tax return was for the full amount of tax i paid, that technically i havnt paid tax for the last financial year even though a return was lodged.
Has anyone else heard anything along these lines?
@Kelly,
Hi Kelly,
You’ve heard correctly.
In order to be eligible for the Working Australians Tax Bonus, a taxpayer must have generate an adjusted tax liability for the 07/08 year. 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.
You’ll find plenty more information and discussion on this in the comments section of this post and, more recently, this post.
Hi kelly,
Yes this has happened to me also, im a single mum, but also work part time, as i claimed back all my tax in expenses, i to miss out, not fair really is it?Mt fried who also works part time, and isa single mum, got her $900, coz she didnt claim all her tax back. So theres people out the who have earn $80.000 and they still get $650 how is that fair?
Hi, I am in the same boat. I lodged my 2007/08 tax return and have been eagerly checking my bank account every day. I understand that I am a low income earner and that I got all my tax back, but how is this fair? I worked just as hard at my job as any other person who earned more. I have a HECS debt, I am unable to find a job relating to my degree due to the economic times and I am living on bare minimum. $900…even $650 would have helped to pay bills. I understand the whole point of this tax bonus – to help the economy…but shouldn’t we help ourselves first??? The rich get richer and the poorer get poorer.
Hi there i was wanting to ask a question. My tax bonus was issued on the 4th of May to my tax agent. It has been sitting in there trust ever since, Each day thet tell me it will be transferred each night but to no avail. Is this a normal process or is something going on??
Hi Warren
I would not say it is normal or ideal, but if your tax agents office is receiving hundreds of bonus payments each week, they may be struggling to process them all in a timely manner.
I’m less sympathetic with their position given they have been putting you off with promises of a transfer that day which is yet to happen. If it isn’t going to happen that day, I feel they should be honest about it so as you are not relying upon it to come through.
Keep in mind that if the transfer is between different banks, it may take 2-3 days from the time they initiate the funds transfer from the trust to actually show up in your account.
If they have not actually done this for you by Monday, I would be inclined to ring them and say you are coming in to pick up a cheque (you might like to suggest they have it ready). A trust cheque will take 3 days to clear but this seems preferable to having to chase up your agent on a daily basis, not knowing when you’ll actualy see your bonus.
If you’ve still gotten nowhere by next week post again and I’ll tell you how to escalate things. Good luck!
As a side note: The ATO really dropped on the ball on this one. At the last moment, agents were given the option to have all bonus payments sent directly to clients. Our office, among a multitude of others, opted for this method to ensure clients got their bonus faster and we were not inundated. It made no difference. All EFT and cheque bonuses have still come through tax agents offices unless a taxpayer has specifically contacted the ATO themselves to change this.
Your tax agent could have been unprepared and under-staffed to handle the huge job of tax bonus processing. And from many agents perspective, it’s costing them money (not making them any) so perhaps it is just not a priority?
This is a shame because it is a wonderful opportunity to make contact with clients they wouldn’t normally hear from throughout the year and show off some great service in the lead up to tax season.
Hi there, Still havent recieved it. I go through http://www.extax.com.au and i sent them another email and they havent replied at all (inwhich they usually reply the same day). They are also charging everyone 13.60 to get the bonus. I think they were prepared as they sent out emails to everyone when the announcement was first made to make sure everyones details were updated. So on to tomorrow to wait and see if it has been done!!
http://www.etax.com.au – sorry i spelt the first one wrong.
Hi again Warren,
You must be a pretty patient person – most people I know people would be going ballistic by now if the tax agent hadn’t sent on their $900 right away.
I’m familiar with the site. I guess this makes it difficult for you to turn up at the office and request a cheque on the spot. I’m not sure you’re feeling the “CPA on call 24 hours a day, 7 days a week” experience right now (sorry… spotted that on the site and couldn’t resist).
Okay, this is where you need to be persistent and firm. With all due respect to your accountants, it has now been a week and a half since the ATO issued your bonus. For an agent to still have your money after this length of time would usually be unacceptable. The Tax Bonus, however, has posed a real challenge and had agents run off their feet with additional administrative tasks. It’s placed an enormous burden on a lot of practices. That said, as you’ve been contacting them regularly and they’ve promised to transfer it each day, well, I find that difficult to sympathise with.
The tax bonus money paid into tax agents trust accounts is considered trust monies and certain rules apply. After an agent has received the tax bonus payment, identified who it belongs to and dealt with any other required admin, that trust money must be withdrawn within two working days (para 20 of APS 10). CPA Australia has acknowledged it is accepted that where an agent has a number of bonus payments to work through on behalf of a range of clients there will inevitably be some delays in processing… still, you shouldn’t have to constantly chase this up. If it was going to be 2 weeks, you should have been told it would be 2 weeks. That would save both sides a lot of fuss. What you need is a clear, honest answer that is followed through.
My suggestion to you would be to try and catch one of the staff online. I notice they have Live Help available on the site. Explain your experience and ask for a straighforward response. If necessary, you could remind them of their obligation with regard to trust money. This might be the extra motivation they need to process your bonus ASAP if they feel you’re willing to take it further.
If your patience does run out and you feel further action is required (though I would strongly urge you to give the agent every opportunity to do the right thing first) you can email me at christie@lewistaxation.com.au and I’ll point you in the right direction.
Good luck!