Hefty tax refunds have fallen well short of budget expectations as a record number of people do their own tax.Credit:istock
He said 10 million taxpayers would get some of the offset with 4.5 million getting the full amount,which the Treasurer predicted would flow quickly into the economy.
"This tax relief will lift household incomes,ease cost of living pressures and boost spending at local businesses,"he said in his budget speech.
Australians rushed to get their hands on the offset at the start of the new tax year. By the end of October,the ATO reported it had mailed back 7.9 million returns – 800,000 more than the same period last year.
Total refunds worth $22 billion have gone out to workers,up $5 billion on the $16.9 billion recorded for the same period in 2018. But the average size of tax refunds has only increased to just under $2800 from $2379.
Economists that had been tipping the refunds to deliver a much needed boost to the economy had factored in much larger tax refunds.
Retail trade figures have shown barely any growth with the September data,to be released Monday,expected to report a modest 0.5 per cent increase for the month.