As foreshadowed in our Beyond Numbers bulletin released last week on 9 February, the Government on Thursday 12 February revised the stimulus package consisting of 6 Bills.

Overall the changes are minor and the tests for applicability and eligibility remain unchanged. Initially the proposal saw cash payments of $950 to be handed out to eligible taxpayers. This amount for some payment has been revised.

Changes from the proposed bills were made in the Senate as follows:


• amended the Tax Bonus for Working Australians Bill 2009 to reduce the bonus amounts payable to:

-$900 (was previously $950) where taxable income is up to and including $80,000;
-$600 (was previously $650) where taxable income exceeds $80,000 and does not exceed $90,000; or
-$250 (was previously $300) where taxable income exceeds $90,000 and does not exceed $100,000;

• amended the Household Stimulus Package Bill 2009 to reduce the single income family bonus from $950 to $900.

Note that the Back to School Bonus, Training and Learning Bonus, and Recipients Farmer's Hardship Bonus all remain at the original $950.

The Bills then were passed by the House of Representatives without amendment and were debated and passed without amendment in the Upper House on Friday 13 February. They now await Royal Assent.
As advised, the payments will be made to temporary residents if they meet the general tax definition of ‘tax resident' and that individual was living in Australia for the 2007/08 income year.

The payment should therefore also be received by taxpayers who were resident in Australia throughout the tax year who departed Australia part way through the tax year if their tax return was correctly filed as being ‘resident’.

It does not state that the payment will be pro-rated for part year residence so it can be assumed that part-year residents will receive the entire amount they would be entitled to had they been living in Australia the entire tax year.

Questions

Please contact Michael van Schaik, Associate Director, Employment & Remuneration Services.
Phone: +61 3 9614 1444