Government announcement - One off bonuses

In the wake of the world financial crisis, the Australian Parliament has passed legislation to enable the distribution of a series of one-off payments to low and middle income households and individuals in an effort to further stimulate the economy.

Five bonuses groups are summarised below.

Tax Bonus: Up to $900 paid to eligible working Australians earning up to $100,000. Read more
Single Income Family Bonus: $900 paid to families with one main income earner. Read more
Farmer’s Hardship Bonus: $950 paid to drought affected farmers and farm dependent small business owners receiving exceptional circumstances related income support. Read more
Back to School Bonus: $950 per child paid to low and middle income families. Read more
Training and Learning Bonus: $950 paid to students and to those returning to studies. Read more

You will not have to apply for these bonuses. Payments will be automatically calculated and distributed based on the information supplied in your income tax return for the year ended 30 June 2008. However, if you are yet to complete your income tax return for that year, it must be lodged by 30 June 2009 to be eligible for these payments. (We recommend clients who are yet to complete their return should contact Saward Dawson immediately.) Payments will not be taxable and will not count as income for social security purposes.

The Government’s intention is for Australians to put these one-off payments back into the economy to boost slowing activity.

The Tax Bonus

Australian workers will each receive up to $900 in a one-off lump sum bonus if their taxable income for the year ended 30 June 2008 is less than $100,001. This bonus will be paid to each worker and is not based on the family situation. So if you are a working couple with incomes of less than $80,001, you will each receive a bonus payment of $900.

The bonus is subject to income thresholds as follows:

Single Income Family Bonus

This bonus is intended to provide assistance to families with children that have one main income earner. Families who receive the Family Tax Benefit Part B (FTB-B) on 3 February 2009, will receive a one-off payment of $900.

Centrelink will automatically make the payments in the fortnight commencing 11 March 2009.

However, if you receive your FTB-B as a lump sum, Centrelink will distribute the payments after your income tax return for the year ended 30 June 2009 has been processed by the ATO. If you are in this category, click here for a tip on how you can receive this payment earlier.

Farmer’s Hardship Bonus

A one-off $950 payment will be made to farmers and rural-dependant small business owners who, on 3 February 2009, are receiving exceptional circumstances related income support. The payments will be made in the fortnight commencing 24 March 2009 to people who are receiving:

	Exceptional Circumstances Relief Payment for Farmers
	Exceptional Circumstances Relief Payment for Small Business
	Interim Income Support for Farmers
	Interim Income Support for Small Business
	Transitional Income Support or
	Farm Help Income Support.

Back to School Bonus

The Back to School Bonus will be paid to families eligible for Family Tax Benefit Part A on 3 February 2009. A $950 bonus will be paid for each child of school age (aged 4 to 18 on 3 February 2009) and is in addition to and separate from the Education Tax Refund.

At this stage, we believe that this bonus will be paid regardless of whether the child is actually enrolled in school i.e. they may be attending kindergarten or even still at home.

Training and Learning Bonus

The Training and Learning Bonus consists of two categories:

Category 1
A one-off $950 payment for recipients of Youth Allowance (students and apprentices), Austudy, ABSTUDY and related payments as at 3 February 2009. This payment will be available to people receiving the Sickness Allowance and Special Benefit (under Age Pension age). Students attracting the Back to School Bonus will not be eligible for the Training and Learning Bonus.

Category 2
An additional payment of $950 to the existing $208 Education Entry Payment for income support recipients who are returning to study. This will also apply to recipients of the Youth Allowance.

Updated : 18 February 2009