The amount of offset you receive depends on your circumstances, such as your taxable income and how much tax you have paid throughout the income year. The LMITO amount for the 2018–19, 2019––21 income years remains the same at between $255 and $1,080. End of example LMITO amounts 2018–19 to 2020–21 income years He is eligible for a low and middle income tax offset amount of $1,500 minus 3 cents for every dollar his income is above $90,000.Īndre's tax payable of $20,367 is reduced by $1,440 using the LMITO. The following examples show how the offsets can reduce the tax you pay.Įxample: taxable income over $90,000 but under $126,000Īndre's taxable income is $92,000 for the 2021–22 income year.Īndre is not eligible for the low income tax offset as his income is above $66,667.Īndre's income is more than $90,000 but less than $126,000. $1,500 minus 3 cents for every dollar above $90,000Įxamples of how the offsets reduce your tax $675 plus 7.5 cents for every dollar above $37,000, up to a maximum of $1,500 Table: Low and middle income tax offset (LMITO) for 2021–22 income year
This increases the base amount to $675 and the full amount to $1,500. The LMITO was increased by $420 (a one-off $420 cost of living tax offset) for the 2021–22 income year.
See Why your tax return outcome may change in 2023. You may have a lower refund (less than when LMITO was available) or you may receive a tax bill. Your tax return outcome may be different this income year. This means it doesn't apply for the 2022–23 income year. Low and middle income tax offset (LMITO) ended on 30 June 2022. LMITO not available 2022–23 income year onwards We will work out your offsets and reduce your tax payable by this amount. You will not receive it if your taxable income is $126,000 or more. You must also be an Australian resident for tax purposes. You receive LMITO if your taxable income is less than $126,000. LMITO is not available for the 2022–23 income year and later income years.įor the 2018–19 to 2021–22 income years, in addition to the LITO, you could receive the LMITO. We will work out your offset and reduce your tax payable by this amount.