TAX BONUSES – STIMULUS PACKAGE

The Government will be providing five one-off payments in March and April 2009 for low and middle income households and individuals as part of its $42 billion ‘Nation Building and Jobs Plan’.

The payments will not be taxable and will not be counted as income for social security purposes.

1. Tax Bonus for Working Australians

This bonus payment will be available to Australian resident taxpayers who paid tax in the 2007/08 financial year (after taking into account available tax offsets and credits).

The payment is subject to an income threshold test which determines that a:

• $900 bonus will be paid to eligible taxpayers with a 2008 taxable income of up to $80,000;

• $600 bonus will be paid to eligible taxpayers with a taxable income exceeding $80,000 and up to $90,000; and

• $250 bonus will be paid to eligible taxpayers with incomes exceeding $90,000 up to and including $100,000.

Taxpayers will not need to apply for the payment: the ATO will automatically make the payment after determining eligibility. However, the tax bonus will only be paid to those who have their 2007/08 return in by 30 June 2009.

Editor: The ATO has advised people to contact them on 1300 686 636 by the middle of March if they need to change address or bank details, so as to ensure the money goes into the right bank account or the cheque is delivered to the correct address in early April 2009 (e.g., if our address or bank account is recorded on your 2008 tax return).

2. Single Income Family Bonus

This one-off bonus payment of $900 is for families with children that have one main income earner (i.e., families who, on February 2009, were eligible to receive Family Tax Benefit (FTB) Part B).

The payment will be made automatically by Centrelink from 11 March 2009.

3. Farmer’s Hardship Bonus

The Government will provide a one-off payment of $950 to farmers and rural-dependent small business owners who, on 3 February 2009, are receiving certain income support and exceptional circumstances relief payments.

The payments will be made in the fortnight commencing 24 March 2009.

4. Back to School Bonus

This payment of $950 is for families eligible for (FTB) Part A on 3 February 2009 for each eligible child of school age (aged 4 to 18 on 3 February 2009).

5. Training and Learning Bonus

This $950 payment consists of two categories, the first being for eligible students, and the second being an additional incentive for social security recipients to return to education and training.