ATO site crashes as desperate Aussies try to claim their tax rebates to ease cost of living crisis

The tax office website has crashed as too many Australians try to submit their return at the same time to get some cost-of-living relief.

Australians inputting their tax file number, to file a tax return, encountered delays on Monday morning on the first day of the new financial year.

'Hang tight! You're in the queue,' a message said.

'To ensure the best experience when you gain access to our online services, we're currently managing the number of people who can login.

'Thanks for your patience.' 

Those hoping to submit a return today are advised to wait.

'To keep your place in the queue, don't refresh this screen or close the browser,' it said.

'To avoid the queue, try again later.' 

Labor's revised Stage Three tax cuts come into effect on Monday, marking the start of the new 2024-25 financial year. 

But Australians are only able to submit their returns for 2023-24, with many hoping to claim work-related expenses in a bid to reduce their taxable income and get a refund to help pay the bills.

The Stage Three tax cuts will see 13.6million taxpayers get relief after Labor revised the former Coalition's government's relief package to give more sweeteners for lower and middle-income earners.

Part-time workers earning $45,000 a year - or less than new the full-time minimum wage of $47,627 - are getting back $805 a year instead of nothing.

Those on $80,000 - slightly more than the average wage of $74,500 - get back $1,679 instead of $875. 

Labor has kept the 37 per cent tax bracket for those earning between $135,000 and $190,000.

Meanwhile, the 45 per cent tax bracket will kick in at $190,000 instead of $200,000.

That means high-income earners on $200,000 get back $4,529 instead of the original $9,075.

Labor has this year abandoned the Coalition's plan, legislated in 2019, for Australia to have four tax brackets, instead of five, for the first time since 1984. 

A 4 per cent inflation surge in the year to May has put the consumer price index further above the Reserve Bank's 2 to 3 per cent target.

A Conservation survey of 29 economists had 20 of them forecasting a delay in rate cuts until at least 2025. 

Those submitting a tax return can claim work-related items, worth up to $300, in one financial year.

Cars worth up to $68,108 can be claimed over eight years of tax returns but there is no price limit on commercial vehicles needed for the likes of tradies.

Businesses with a turnover of up to $10million can claim items worth up to $20,000 in one financial year as part of the 'instant asset write-off'. 

Tax returns have to be filed by October 31 or lodged with a tax agent by that date to get an extension to May 15.