Ten million Australian will get an extra $1,080 in their bank accounts starting TODAY when their tax return comes in
More than 10 million Australians will start getting get an extra $1,080 in their bank accounts from today after filing their tax returns.
The low and middle income tax offset is available to taxpayers who earned between $48,000 and $126,000 during the 2021-22 financial year.
Singles will see an extra $1,080 after lodging their returns, and couples will get an additional $2,160.
The payments take 10 business days to process so Australians who filed on July 1 will receive their refunds with the additional payment today.
Australians who earn between $48,000 and $126,000 during the 2021-22 financial year will see the tax breaks (stock image)
Treasurer Josh Frydenberg said the extra payment was a way to inject much-needed cash into the economy, which took a hit when millions of businesses closed due to the Covid-19 pandemic.
'This is more money to spend in local businesses, giving them the confidence to take on an extra worker, offer an extra shift or buy a new piece of equipment,' he said.
'It will flow through the economy just as our tax relief has done during the crisis to fuel record growth in household spending.'
Another 1.8 million people earning $37,000 to $48,000 get back $255.
Not only will the lump sum be in place for this year's tax return, it will also remain for the 2021-22 financial year - before even more tax breaks take effect in 2024.
Treasurer Josh Frydenberg said the government handout is a way to inject much-needed cash into the economy
But H&R Block tax communications director Mark Chapman said the handout was not a tax cut - describing it instead as a 'deferral of a tax rise'.
He said the extension of the LMITO or 'the Lamington' ensures low and middle-income Australians do not see tax hikes of up to $1,080 next year.
'Let's call this what it is and ignore the government spin – this isn't a tax cut, its simply the deferral of a tax rise,' he said.
'Nobody should be counting the extra dollars in next year's pay packets because there aren't any.
'The tax burden for low and middle income individuals next year is exactly the same as it was this year.'