Revealed: how much Australians are REALLY getting back on their tax returns as they use lockdowns to get the paperwork done early

Australians are getting back $2,490 on average in tax refunds as lockdowns see more people get their paperwork done early.

Since the start of July, 2.1million refunds have been deposited into bank accounts, new Australian Taxation Office data showed.

That means a fifth of the 10million people earning up to $126,000 a year have already received their low and middle-income tax offset of between $255 and $1,080.

When that tax offset was combined with claimed tax deductions, average refunds paid out, so far, into bank accounts stood at $2,490 with $5.3billion returned to taxpayers since the start of the financial year four weeks ago.

Australians (pictured is a woman walking during the Sydney lockdown) are getting back $2,490 back in tax on average as lockdowns see more people get their paperwork done. Since the start of July, 2.1million refunds have been deposited into bank accounts, new Australian Taxation Office data showed

Assistant Treasurer Michael Sukkar said the refunds were needed to boost the economy during the lockdowns.

'The injection of over $5.3billion into the economy is welcome news during the current Covid-19 pandemic,' he said.  

In the May Budget, Treasurer Josh Frydenberg extended low and middle-income tax offsets for 10million people earning up to $126,000 at a cost of $7.8billion.

This will see 4.6million Australians earning between $48,000 and $90,000 receive $1,080 as another 1.8million people earning $37,000 to $48,000 get back $255.

Those earning between $90,000 and $126,000 will get back a smaller amount.

Last year's October Budget provided low and middle-income tax offsets for those earning up to $126,000 and this was continued in the May 11 Budget.

Assistant Treasurer Michael Sukkar said the $5.3billion worth of tax refunds were needed to boost the economy during the lockdowns

Both sets of tax relief measures will see an Australian earning $90,000 pay $7,020 less tax over the four years from 2018 to 2022. Those earning between $60,000 and $80,000 will pay $6,480 less compared to 2017 tax settings.

Stage two tax cuts that in the 2019 Budget were earmarked for July 2022 were last year fast tracked to 2020.

High-income earners are getting big tax cuts from July 1, 2024 as the 37 per cent tax bracket is abolished and a new 30 per cent tax bracket is created for individuals earning between $45,000 and $200,000.

Labor Opposition Leader Anthony Albanese on Monday announced his party would support these Stage 3 tax cuts, despite public misgivings this year from shadow treasurer Jim Chalmers.

The number of tax brackets is also being trimmed from five to four for the first time since 1984 as part of the stage three tax cuts announced in 2019.

Australians have until October 31 to file their tax return, either online via the tax office website or through an accountant.