REVEALED: The nasty surprise that could hit parents when they file their tax returns – and they may OWE money instead of receiving the $1080 bonus
- Federal government cracking down on parents’ incomes for last financial year
- A third of the 1.1 million families entitled to subsidies could have been overpaid
- Department of Human Services to ‘balance’ parents’ income from 2018-2019
Parents filing their tax returns could be in for a nasty surprise, with chances they could be hit with a debt rather than receiving the tax offset they expected.
The Australian federal government is cracking down on parents’ incomes for the last financial year to ensure the correct amount of childcare subsidies were handed out.
A third of the 1.1 million families who are entitled to childcare subsidies could have been overpaid, Fairfax reported.
The Australian federal government is cracking down on parents’ incomes for the last financial year to ensure the correct amount of childcare subsidies were handed out (stock)
A third of the 1.1 million families who are entitled to childcare subsidies could have been overpaid (stock)
To find access eligibility for child care subsidy, MyGov looks at a family’s income, the hourly rate cap based on the type of approved child care and the child’s age – as well as the hours of activity you and your partner do.
At the end of the month, the Department of Human Services will look into parents’ incomes from the 2018-2019 financial year and ‘balance’ the estimates through tax returns.
Parents can expect one of three outcomes: Their payments were accurate, they were underpaid – in which case they will be paid what they’re owed – or they were overpaid so they would have to payback.
At the end of the month, the Department of Human Services will look into parents’ incomes from the 2018-2019 financial year and ‘balance’ the estimates through tax returns (stock)
Advocacy group The Parenthood spokeswoman Megan O’Connell said there is a concern for parents who work casually because they do not work set hours.
‘Their hours change from week to week,’ she told the publication.
‘Hopefully the first they hear about this issue is not receiving a debt notice via email.’
Early Childhood Australia chief executive Samantha Page said there is uncertainty with the system where parents estimate their income for the year.
She said she did not want to see any families hit with any unexpected expenses and have children being pulled out from childcare.
This comes after the government announced that Australians could see $1,080 arrive in their bank accounts from Friday once they file their tax return – a boost that could be wiped out for some parents who were overpaid childcare subsidies.
The $158 billion package passed the lower house earlier this month after about three hours of debate.
Treasurer Josh Frydenberg has promised the money would be flowing as soon as possible
Part-time workers earning less than $37,000 a year are getting a smaller tax cut of $255, or just $4.90 a week (stock)
Treasurer Josh Frydenberg promised the money would be flowing as soon as possible.
‘This is a major win for the Australian economy and a major win for Australian taxpayers because more than 10million taxpayers will get up to $1,080 in their pocket once they put in their next tax return and the money will flow from next week,’ he told the ABC’s 7.30 program.
In the pre-election April Budget, the Coalition offered tax cuts for 10million Australians.
The most generous tax cut of $1,080 was earmarked for those 4.5million people earning between $48,000 and $90,000 a year.
Part-time workers earning less than $37,000 a year are getting a smaller tax cut of $255, or just $4.90 a week.
Full-time workers on the national minimum wage earning $38,522 a year are getting similar tax cuts, as part of a package to provide relief to everyone earning up to $126,000.
These low-income Australians, who work as cleaners and baristas, also received a three per cent, or $21.60 a week, pay rise as of July 1 from the Fair Work Commission.