Low and Middle Income Tax Offset

How do you claim the increased offset and who is eligible?



Low and Middle Income Tax Offset


The media has reported heavily on the government's budget plans to increase low and middle income tax offsets. The increase to the offsets were passed in parliament on the 4th of July 2019 and are now available to individuals.

Although some businesses are using advertising to remind individuals not to “miss out on their tax refund” the tax offset is automatically applied by the ATO when your tax return is lodged. When completing your individual tax return with Easdowns we will calculate the rebate as part of your tax estimate prior to lodging.

The low and middle income tax offset is available to those who have an individual taxable income of less than $126,000.

The maximum offset available is $1,080 per annum. The base amount, which applies for incomes up to $37,000 is $255 per annum. The amount you receive depends on your income and how much tax you've paid throughout the year. 

It’s important to remember that an offset doesn't mean that you will automatically get an extra $1,080 in your tax return. The offset reduces the amount of tax you pay on your taxable income. Depending on how much tax you paid throughout the year, the offset may result in a larger refund or smaller debt.

If you are eligible for the offset the amount will be shown on your tax estimate when you receive your completed return from Easdowns Accountants and Advisers. For more information you can visit the ATO's website or if you have further questions about the offset, please don’t hesitate to contact your dedicated client service manager.




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