When the Federal Budget was announced in May this year, there was some news which made low and middle income earners smile – the decision to extend the tax offset for the 2021/22 financial year.
The Low and Middle Income Tax Offset (LMITO) helps low and middle income earners reduce the amount of tax they pay; the offset can’t be used to generate a tax refund, it can only be used to lower your tax bill.
Am I eligible for the LMITO?
Your eligibility depends on your taxable income. If your taxable income is equal to or below $126,000, then you are eligible. You may be eligible for the full LMITO amount of $1,080, or a partial LMITO, depending on your income. There is also no need to apply for it, the ATO will calculate your eligibility when they assess your tax return.
What is the LMITO income threshold?
The ATO has provided a table showing income thresholds and the offset available here.
If you need assistance with your tax return, please speak to the team at Greenhalgh Pickard. Our professional and friendly accounts team are here to help answer your questions.