ATO Tax Rates - Low Income Tax Offset

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AUSTRALIAN TAX RATES AND INFORMATION

Low Income Tax Offset "LITO"

The LITO is an "offset", which is an amount subtracted from tax payable. If the calculated LITO offset is greater than the tax payable, the excess is not refundable.

2012-2013

and for 2013-14, 2014-15

With effect from 1 July 2012 the full offset is $445, with a withdrawal rate of 1.5 cents per dollar of income over $37,000, such that it cuts out at $66,667.

Here's the calculation table:

The full Low Income Tax Offset is $445 in 2012-2013 (and following years)

Taxable Income	LITO Offset
0 – 37,000	$445
37,001 – 66,667	$445 – [(taxable income - $37,000) x 1.5%]
66,667 +	Nil

2011-2012

The Low Income Offset is available when your taxable income is less than $67,500 in 2012. The low income tax offset amount reduces at a rate of 4 cents per dollar of income over $30,000.

The full Low Income Tax Offset is $1,500 in 2011-2012.

Taxable Income	LITO Offset
0 – 30,000	$1,500
30,001 – 67,500	$1,500 – [(taxable income - $30,000) x 4%]
67,500 +	Nil

PAST YEARS' LITO OFFSET FORMULAE

2010-2011

The Low Income Offset is available when your taxable income is less than $67,500 in 2011. The low income tax offset amount reduces at a rate of 4 cents per dollar of income over $30,000.

The full Low Income Tax Offset is $1,500 in 2010-2011.

Taxable Income	LITO Offset
0 – 30,000	$1,500
30,001 – 67,500	$1,500 – [(taxable income - $30,000) x 4%]
67,500 +	Nil

2009-2010

The Low Income Offset is available when your taxable income is less than $63,750 for the 2010 financial. The low income tax offset amount reduces at a rate of 4 cents in the dollar, for every dollar of income over $30,000.