Treasurer “Josh Frydenberg” on Tuesday announced that the low and middle-income tax offset (LMITO) would be extended for a further year at a cost of $7.8 billion.
The low and middle income tax offset is a non-refundable offset, which means any unused offset amount itself cannot be refunded or reduce the Medicare Levy.
The tax offset reduces your overall tax bill, so you might end up having to pay less if you receive a tax bill.
The LMITO provides individuals with taxable incomes between $48,000 and $90,000 with a maximum offset of $1,080. Taxpayers earning less than $37,000 will see a benefit of up to $255
Taxpayers with a taxable income that does not exceed $37,000 will receive a low and middle income tax offset up to $255. People with a taxable income that exceeds $37,000, but is not more than $48,000 will receive $255, plus an amount equal to 7.5% to the maximum offset of $1,080.
Quick Guide
Taxable Income Rebate
0 to $37,000 255
37,000 to 48,000 255 + 7.5%
48,000 to 90,000 1,080
90,000 to 126,000 1,080 – 3%
126,000 plus 0
you will be disappointed if you were expecting it to land into your pocket, it is not a refund related with any COVID-19 Government grant, it is a offset of your tax that you have already paid, and it is depends with various factor
Please contact Swan partners and book for your free 15 mins tax consultation time so that we can assist you to get the maximum benefit of your Tax 2021 and all tax related matter