Last chance for Aussies to claim the $1500 tax break
This might be your last chance to get $1500 back on your tax.
Over 10 million Aussies will have to act quickly if they haven’t already done so. The $1500 tax offset will be available for the last time for low to middle income earners - this includes those who earn between $48,000 to $90,000.
If you fall into this category simply submit your tax return before October 31 to receive the refund.
“You only receive the low and middle income tax offset when you lodge this year’s return,” H&R Block’s Mark Chapman said.
“Quite an incentive to get your tax return done and lodged!”
The offset scheme, which has been extended twice during the pandemic, has been increased by $420 to the maximum of $1500 for those in the magic $48,000 to $90,000 bracket for the 2021-22 financial year.
“For those who earn less than $37,000, the offset is $675,” Chapman said.
“If you earn between $37,000 and $48,000 the offset will increase up to a maximum of $1500.”
But for those who earn over $90,000, the offset is gradually phased out. If your earnings go over $126,000 you won’t get any offset on your tax at all.
However, the Australian Taxation Office has emphasised that the offset - also known as the LMITO - is not a cash refund.
“The offset can only reduce the amount of tax you need to pay to $0, and if there is any offset remaining you will not receive that amount as a cash refund.” If you want to read more about it, head to the ATO website.
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