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Household Stimulus Package

To kick-start the economy the government has announced the ‘Household Stimulus Package' which will see a series of one-off payments being paid to the majority of Australian taxpayers. It is expected that around 80% of Australians (around 8.8 million) will receive a payment under this scheme.

The majority of Australians will be receiving the ‘Tax Bonus for Working Australians', which will provide financial assistance to low to medium income earners. Eligible taxpayers will receive up to $900 depending on income thresholds.

Will you be eligible?

The tax office will determine if you are eligible from the information lodged on your 2007/2008 taxation return. Your tax return MUST be lodged by 30 June 2009 otherwise you will not be eligible to receive the payment. To be eligible for the payment you must have had a net tax expense on your 2007/2008 notice of assessment. Specifically, your tax expense must be greater than your tax offsets and credits. Also, your 2007/2008 taxable income can not exceed $100,000. The payment thresholds are as follows;

• 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 top and including $100,000

You can check your taxable income by looking at your Notice of Assessment from the tax office. This would have been sent to you after the lodgement of your 2007/2008 tax return.

When & how will the payments be made?

The first round of payments will commence from April 2009. The people who have already had their returns lodged and assessed will be the first to receive payment. If the return is lodged after this time, the payment will be made once the return is finalised. However, if it is not lodged by 30 June 2009, you will become ineligible to receive payment.

If you prepared your own return, the Tax office will determine from your 2007/2008 tax return the account in which to transfer the payment to. However, if a tax agent (such as KeyPlay Taxation Services) prepared your tax return for you, it is unlikely that the tax office will have your bank account details. To update your details with the tax office to ensure the payment is deposited directly into your bank account make sure you contact the automated phone service on 1300 686 636 by mid March. Make sure you have your tax file number handy, and they will also ask for your date of birth for proof of identification purposes.

What other payments are being made?

In addition to the tax bonus for Working Australians, the government has also announced payments to further financially assist people who need it most. The household stimulus package also includes;

• The Farmer's Hardship Bonus - which will be paid to farmers and others receiving Exceptional Circumstances related income support - $950

• A Single Income family bonus - to provide additional assistance for families that have one main income earner. Family must be eligible to receive Family Tax Benefit Part B - $900 per eligible family

• A Training and Learning Bonus - to assist students, those returning to study or training - $950

• A Back to School bonus - to assist low and middle income families eligible for Family Tax Benefit A with school-age children - $950 per eligible child

Centrelink will be administering the above payments and will also be determining eligibility.