Effective 1 July 2019
The Low and Middle Income Tax Offset (LMITO) was introduced in last year’s Budget as an addition to the the Low Income Tax Offset (LITO). The LMITO will increase for individuals and families, starting from the current financial year, with eligible low-to-middle income earners receiving a payment after submitting their tax return.
The base rate for the LMITO will increase from $200 to $255 and the maximum payment will increase from $530 to $1,080.
From 1 July 2022, both offsets will be replaced by a single low-income tax offset.
Over the next five years, many Australians will receive a decrease to their income tax rate in one of three ways:
The Government will increase the Medicare Levy low-income threshold for singles, families, and seniors and pensioners from the 2018-19 income year.
You won’t be charged the Medicare Levy if your taxable income is below the following thresholds:
This article is published by R J Sanderson and Associates Pty Ltd ABN 71 060 299 783. This article contains general information only and is not intended to represent specific personal advice (Accounting, taxation, financial or credit). No individual personal circumstances have been taken into consideration for the preparation of this material. It is recommended that you obtain your own personal professional advice before making any financial or business decision.