Some of you may have already submitted your 2019 tax returns and had a nice but surprised tax refund. Do you know why you have those extra refund and how many more years the refund continues? You are about to find out the answer in a minute.
From the 2018-19 financial year, the Low- and Middle-Income Tax Offset for Australian resident taxpayers is up to $1,080 per annum.
- The LMITO is a non-refundable offset.
- The LMITO directly reduces the amount of tax payable but does not reduce the Medicare levy.
- The ATO automatically calculates and applies the non-refundable offset. The amount of the offset and the amount of any refund will differ depending on individual circumstances such as income level and how much tax has been paid throughout the year.
|Taxable income range ($)||Low and Middle Income Tax Offset|
|0 – 37,000||Up to $255|
|37,001 – 48,000||$255 plus 7.5 cents per dollar of income above $37,000|
|48,001 – 90,000||$1,080|
|90,001 – 126,000||$1080 less 3 cents per dollar of income above $90,000|
|126,000 and above||$0|
The LMITO will cease at the end of the 2021-22 financial year and be replaced by the low income tax offset.
For more information, please contact Beyond Taxation for further clarification.