2021 tax return: Australians have two weeks left to get refund or face hefty ...

2021 tax return: Australians have two weeks left to get refund or face hefty ...
2021 tax return: Australians have two weeks left to get refund or face hefty ...

Australians have only two weeks to submit their tax return to get a typical refund of $2,160 and avoid a hefty fine that increases the longer the delay.

Low and middle-income tax offsets and last year's fast forwarding of tax bracket changes means most workers will receive something good this year.

Those doing their return online themselves have until October 31 to submit their claims via the myGov website.

Halloween is also the deadline to register with an accountant or tax agent to avoid a $222 fine and get an extension to May 15 next year.

The Australian Taxation Office's 'failure to lodge' on time penalty increases by $222 for every 28 days it is late, rising to a maximum of $1,110 over five months. 

Australians have until October 31 to submit their tax return to get a typical refund of $2,160 and avoid a hefty fine that increases the longer the delay (pictured is a stock image)

Australians have until October 31 to submit their tax return to get a typical refund of $2,160 and avoid a hefty fine that increases the longer the delay (pictured is a stock image)

Australia's three stages of tax cuts

Tax cuts of $255 for those earning between $18,200 and $37,000 were legislated in July 2019

Those earning $48,000 to $90,000 saw their tax cuts double from $530 to $1,080

The government's tax cuts package, announced in the April 2019 pre-election Budget, had three stages

Stage one increased the threshold for the 32.5 per cent personal income tax bracket from $87,000 to $90,000, over four years until 2022

Stage two increases the 19 per cent personal income tax bracket from $37,000 to $45,000. It also raises the 32.5 per cent personal income tax bracket from $90,000 to $120,000

Stage three would see the 37 per cent tax bracket abolished from July 1, 2024 and a new 30 per cent tax bracket created for all individuals earning between $45,001 and $200,000. The number of tax brackets would be slashed from five to four for the first time since 1984

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H&R Block director of tax communications Mark Chapman said low and middle-income tax offsets of up to $1,080 and a fast-forwarding of tax bracket changes, adding another $1,080 in relief, would benefit Australians on median and average full-time salaries.

'The combination of the changes in tax thresholds announced in last year's Budget and the extension of the low- and middle-income tax offset means that if you earn between $48,000 and $90,000, you are probably $2,160 better off this year,' he told Daily Mail Australia. 

'You only receive the low- and middle-income tax offset when you lodge this year return. 

'Quite an incentive to get your tax return done and lodged.'

Low and middle income tax offset 

More than 10million Australian workers earning up to $126,000 are receiving up to $1,080 from the low and middle-income tax offset.

As part of this package for 2020-21 tax returns, 4.6million Australians earning between $48,000 and $90,000 will receive $1,080 as another 1.8million workers earning $37,000 to $48,000 get back $255.

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