04 July 2019

Tax Cuts… How much of the offset am I entitled to?

The Low and Middle Income Tax Offset thresholds

The taxable income thresholds below were announced in the 2019 Federal Budget. They have now passed parliament and will soon be legislated.

These LMITO thresholds apply for the 2018/2019, 2019/2020, 2020/2021 and 2021/2022 years.

Taxable incomeLMITO
$37,000 or less$255
$37,001 to $48,000$255 plus 7.5% of the portion of your taxable income that exceeds $37,000
$48,000 to $90,000$1,080
$90,000 to $126,000$1,080 less 3% of the portion of your taxable income that exceeds $90,000

The maximum available LMITO is $1,080 for taxpayers with taxable incomes between $48,000 and $90,000.