Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Earn

$5.3bn in tax returns tipped to support economic recovery

  • July 29 2021
  • Share

Earn

$5.3bn in tax returns tipped to support economic recovery

By Fergus Halliday
July 29 2021

Less than 30 days into the new financial year, the ATO has revealed that over 2 million tax refunds have been processed.

$5.3bn in tax returns tipped to support economic recovery

$5.3bn in tax returns tipped to support economic recovery

author image
  • July 29 2021
  • Share

Less than 30 days into the new financial year, the ATO has revealed that over 2 million tax refunds have been processed.

$5.3bn in tax returns tipped to support economic recovery

The Australian Taxation Office (ATO) has been hard at work since the financial year ended last month.

The ATO has announced that it has already processed 2.1 million tax refunds. This looks to be an increase on the number of refunds processed in the first month of the previous financial year.

As of 14 July 2020, the ATO revealed it had received 1.7 million tax refunds and paid out around $1 billion to taxpayer bank accounts. While today’s number covers a longer period of time, the sum total of money changing hands is significantly bigger this time around.

Advertisement
Advertisement

With an average refund amount of $2,490, the ATO estimates that a total of $5.3 billion has already arrived in the bank accounts of Australian taxpayers.

Assistant Treasurer Michael Sukkar said that this injection into the economy “is welcome news during the current COVID-19 pandemic. Australians should be confident in the government’s plan for economic recovery and support for individuals and families across the country”.

Mr Sukkar said that many of these returns include the Morrison government’s low and middle income tax offset.

This measure was introduced in 2019, giving eligible Australians a tax benefit of up to $1,080 when they lodge their returns on time.

For those who have yet to file, the ATO offers a number of free services. For those who earn around $60,000 or less in salary or wages, the Tax Help program can assist you to get your affairs in order.

If you’re not eligible for Tax Help but remain unable to afford professional advice and representation when it comes to your tax affairs, the National Tax Clinic is another option.

“Many people are expecting larger than average tax refunds this year,” Elinor Kasapidis, senior manager tax policy at CPA Australia, told nestegg.

“After nearly 18 months of COVID doom and gloom, it’d be understandable if they felt the urge to splurge. Seeing a financial adviser can help you be more strategic and set yourself up for long-term financial security,” she said.

$5.3bn in tax returns tipped to support economic recovery
$5.3bn in tax returns tipped to support economic recovery
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article

About the author

author image

Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times. 

About the author

author image
Fergus Halliday

Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times. 

more on this topic

more on this topic

More articles

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.