My sister just got her tax return back, which included the new personal tax offset of $1080. This year’s tax cuts of up to $1080 per taxpayer is focussed on relief for low and middle income earners. Tax savings entitlement takes a tiered approach. It’s been dubbed (in true Aussie style) “The Lamington”. The full benefit of $1080 is available to taxpayers in the $48,000-$90,000 bracket.
This graphic from The Sydney Morning Herald gives a handy visual explanation of taxpayer entitlement:
The rationale behind the cuts addresses the stagnation of pay rises in comparison to historical norms. Meanwhile the cost of utilities, food, transport and other living costs have gone up. This has reduced disposable household income. The 2019 tax offset is designed to help ease the squeeze, whilst stimulating spending.
It’s always nice to get a bit extra back into your pocket, but it can also far too easily fly right back out again. Leaving you with nothing to show for it. When I was chatting with my sister about her tax bonus, I teased her about spending it on more shoes and handbags. She asked me what I’d do with it.
That’s easy. I’d invest it in myself every time, and I’m not talking shoes and handbags. I’d focus on turning it into a whole lot more…
The research is clear in Australia – the higher our level of education, the more we earn.
That’s why when I started rebuilding my life after I left police, I invested in qualifications that gave my service career meaning on the outside.
You are your biggest asset when it comes to securing a new job or simply ensuring you are secure in the one you have, so it makes sense to invest bonus cash windfalls in making yourself as valuable as you can to your existing or potential employer.
Whatever you do with your tax return this year, make sure it is an investment in you – because you are your number one asset.
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Image credit: Fraser Coast Chronicle