Millions of Australians to receive $500 tax benefit boost soon
- 1 day ago
- 1 min read
Millions of workers will receive a boost to their finances from July 1, with two major tax changes set to deliver an average saving of almost $500.
The federal government’s latest budget confirmed a new $1,000 instant tax deduction for workers, allowing around 6.2 million taxpayers to reduce their taxable income without needing to provide receipts.
The measure is expected to put about $205 back into the pockets of eligible workers when they complete their 2026-27 tax returns.
A previously announced tax cut will also begin, reducing the lowest tax rate from 16 per cent to 15 per cent for income between $18,201 and $45,000. This will provide taxpayers with savings of up to $268 over the financial year.
Together, the changes are expected to deliver an average benefit of around $473 for workers in 2026-27.
Further savings are expected from July 2027, when the lowest tax rate will drop again to 14 per cent. A new Working Australians Tax Offset will also begin, providing up to $250 off the tax bill for an estimated 13 million workers.
The government expects the combined measures could save an average worker close to $1,000 from the 2027-28 financial year.
Meanwhile, the Australian Taxation Office has warned people not to lodge tax returns too early, saying rushed submissions can lead to missing information, mistakes and processing delays.
The ATO says waiting until income details and required information are available can help avoid issues with tax refunds.
Source : 9 News
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