More Money In Your Pocket With The New Income Tax Offset

We’ve been asked by some clients when we do their 2019 income tax returns, are we taking into account the new ‘tax relief’ for low and middle-income earners (LMITO), with the maximum offset being $1,080?

The answer is an absolute yes. Our software has taken it into account if you are eligible for the offset.

Who is eligible? It does depend on how much tax you have paid, and what your taxable income is. The full $1,080 tax offset is for taxpayers with a taxable income between $48,000 and $90,000. If your income is over or under that income range, your tax offset amount will be less. If you haven’t paid any tax, there will be no cash refund because of the offset.

LMITO – Low and Middle Income Tax Offset

These LMITO thresholds apply for the 2018/2019, 2019/2020, and 2021/2022 years.

Taxable incomeLMITO
$37,000 less$255
$37,001 to $48,000$255 plus 7.5% of the portion of your taxable income that exceeds $37,000
$48,001 to $90,000$1,080
$90,001 to $126,000$1,080 less 3% of the portion of your taxable income that exceed $90,000

Source: Treasury

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