Low & Middle Income Tax Offset

Updated February 14th 2020

LMITO was recently passed by parliament and became legislation effective for the year ended 30 June 2019.

The tax offset reduces the amount of tax otherwise payable by an individual and any unused offset amount cannot be refunded.

The offset is automatically calculated and paid when you lodge your income tax return. The offset amount is dependent upon an individual’s taxable income and is calculated as follows:

Less than $37,000 $255
$37,001 – $48,000 $255 plus 7.5% of the excess above $37,000
to a maximum of $1,080
$48,001 – $90,000 $1080
$90,001 – $126,000 $1,080 less 3% of taxable income over
$126,001+ Not eligible

The LMITO is available for the 2018-19, 2019-20, 2020-21 and 2021-22 years and is in addition to the existing low income
tax offset.