The Low to Middle Income Tax Offset (LMITO) expired on June 30, 2022.
We have found a number of clients impacted by this as they are getting their tax returns completed and finding their tax refunds are much less. In addition, retirees may be paying tax now as their taxable income has increased without the offset.
How the LMITO worked
Taxable income of $37,000 or less – $675 offset
Taxable income of $37,001 to $48,000 – $675 offset plus 7.5c for every dollar above $37,000, up to a maximum of $1,500
Taxable income of $48,001 to $90,000 – $1,500 offset
Taxable income of $90,001 to $126,000 – $1,500 offset minus 3c for every dollar above $90,000
It is the second taxable income bracket that we are finding retirees who previously didn’t pay tax are now getting caught and having to complete tax returns.
If you would like to discuss or are concerned about whether you should be paying tax, please contact our office on 1300 014 368.
