19th March 2009 : The $900 bonus to taxpayers could be in question

The Federal Government's $900 bonus to taxpayers could be in question after the High Court agreed to hear a challenge to the legality of the payment.
The case is set down to be heard for two days from March 30.

The Australian Taxation Office has told the High Court that if it is to stop printing cheques it needs to be told by the close of business on April 2.

• abc.net.au

Since the global finance crisis the Australian Government has announced two Financial Stimulus Packages, the latest one being on 3rd February 2009

NOTE: This plan passed Government Legislation on Friday 13th 2009

The February Plan Details

The more important aspects of this latest package, for most individuals, are as follows:

• $900 to all taxpayers earning under $80,000 pa,
  or
  $600 for those earning between $80,000 and $90,000
  or
  $250 for those earning between $90,000 and $100,000.
  
  

  Who is eligible for the above Payments

  Anyone who is classed as Resident for Australian Tax purposes, and has paid some tax in the 2007/2008 tax year, and has a Taxable income of under $100,000, is in the current list of those to be paid. This includes Citizens, Permanent Residents and people on Temporary Visa's.
  
  
  You are eligible to receive the payment if:
  
  • you have lodged or will lodge your 2007-08 income tax return before 30 June 2009 or if you have been granted a deferred date by the Tax Office before Wednesday 18 February 2009 and you lodge your return by the deferred date
    
  • your 2007-08 taxable income does not exceed $100,000
    
  • your adjusted tax liability for 2007-08 is greater than nil, and
    
  • you are an Australian resident for tax purposes for the 2007-08 financial year.
    
  Source:
  ato.gov.au/corporate/content/00178930.htm
  
  Note: If you did not pay any Tax, after all rebates and refunds are taken into account, then you are not a "Taxpayer", and do not qualify.
  Further eligibility criteria for this may be available shortly, following any changes to the legislation .
  


Plus:
• $900 for recipients of Family Tax Benefit part B, who are eligible as at Feb 3rd 2009


Plus
• $950 per child aged between 4 to 18 (on Feb 3rd 2009), where the parents are also eligible for Family Tax Benefit part A, as at Feb 3rd 2009.

There are various other components to this package, but the above are the main ones.

From the above it does seem possible that a person who is eligible for the FTB part B, will get the $900 Single Income Family Bonus, using that criteria, PLUS another $900, as the secondary lower income earner paying tax.

Payment Dates

Centrelink payments

The Centrelink payments are currently scheduled to be made during 11th to 20th March for people who receive FTB fortnightly, or after they have lodged the FTB and Tax Return forms after June 30 2009, if they receive their FTB payment annually.

Tax Office Payments

The Tax Office payments are scheduled to commence on 6th April 2009, and will continue until after June, depending on when people have lodged their tax returns.

Additional Rebates

• The Solar Hot Water Rebate will be increased from $1000 to $1600 from 3rd February 2009. This rebate is not means-tested. :
  Source: Energy Efficient Homes Package.
  Application Forms and Guidelines will be available from the 26 February 2009. payments will be made from July 1st 2009
• The Low Emissions Plan for Renters rebate will increase from $500 to $1000
• The Government will install free ceiling insulation, up to $1,600 in value, in around 2.7 million Australian homes, from 1 July 2009.
  As an interim arrangement, from today and until 30 June 2009, eligible owner-occupiers who install ceiling insulation in their homes will be able to seek reimbursement (up to $1,600) after the program commences.
  Source: Media Release

People will have to choose between receiving the free insulation OR the solar rebate, they cannot have both.

One of the conditions for the Insulation plan is: "You are an Australian citizen or permanent resident aged 18 years or over"

• www.environment.gov.au

Fact Sheets

For more information refer to the following fact sheets:

• Household Stimulus Package
• $900 / $950 Tax Bonus for Working Australians
• Single-Income Family Bonus
• Farmer's Hardship Bonus
• Assistance with Education - Back to School Bonus
• Training and Learning Bonus
• Pensioners
• Building the Education Revolution
• Small Business and General Business Tax Break
• The Energy Efficient Homes Program
• $6.4 Billion Public and Community Housing
• Additional Defence Housing Construction Program
• Additional Investment in Black Spot Program
• Boom Gates for Rail Crossings
• Repairing Regional Roads and Funding for Community Infrastructure