The End of the Low and Middle Income Tax Offset

Changes to your 2023 tax return….

The Low and Middle Income Tax Offset (LMITO) was officially abolished on the 30th of June 2023.
The Low and Middle Income Tax Offset was a temporary tax cut for anyone earning up to $126,000, with the greatest benefit of $1500 going to those taking home between $48,000 and $90,000.

This means that without the offset, your tax bill will be higher this year.

As a reminder, the Low and Middle Income Tax Offset was introduced in 2019 and provided a tax offset if you were a low or middle income taxpayer. The amount of the offset varied depending on your income:

• $37,000 or less = $675

• $37,001 to $48,000 = $675 plus 7.5 cents for every dollar above $37,000, up to a maximum of $1,500

• $48,000 to $90,000 = $1,500

• $90,001 to $126,000 = $1,500 minus 3 cents for every dollar of the amount above $90,000

For further information from the ATO about the Low and Middle Tax Offset, click here.

If you have questions about how you can maximise your tax return this year, book in with one of our accountants: