|
|
 |
|
|
|
| |
|
WARNING! THIS PAGE MAY NOT BE UP TO DATE
|
|
|
As we no longer have the resources to keep it up to date, this website ceased to be a subscription website from March 2022
(last annual subscription accepted in December 2020)
You should not rely on it for the most up to date information. Having said that, we do update some of it from time to time.
You may still find some of it useful.
You may wish to use the atotaxrates.info website instead, which may be more up to date.
|
| |
|
Low / Low & Middle Income Tax Offsets (LITO and LAMITO) - Australian Residents Only
|
|
|
|
* Please click on maximise [+], not the titles, to display the contents of any hidden containers *
Not refundable. This Offset can be used to reduce tax payable, but is not refundable, nor is it available to offset the Medicare levy.
| |
|
LITO is generous in 2 ways!
|
 |
|
- Unlike many other tax offsets LITO and LAMITO are based on Taxable Income (unadjusted).
- If a taxpayer has only been an Australian Tax Resident for part of the tax year the offset is the same as if they had been a tax resident for a full year. It is not calculated pro-rata.
|
| |
|
Links to LITO and LAMITO
|
 |
|
|
| |
|
The New LITO from 2020/2021 (as amended)
|
|
|
Applicable tax offset
|
If taxable income is
|
$700
|
0 to $37,500
|
$700 to $325
|
$37,501 to $45,000 **
|
$325 to NIL
|
$45,001 to $66,667 ***
|
Nil
|
$66,668+
|
** The $700 base offset is reduced by 5% for every dollar of taxable income above $37,500 up to $45,000.
*** The $325 offset is reduced by 1.5% for every dollar of taxable income above $45,000.
|
| |
|
LAMITO 2021/2022
|
|
|
Low and middle income tax offset for 2021–22 income year
|
Taxable income
|
Offset
|
|
$37,000 or less
|
$675
|
|
From $37,001 to $48,000
|
$675 plus 7.5cents for every dollar above $37,000, up to a maximum of $1,500
|
|
From $48,001 to $90,000
|
$1,500
|
|
From $90,001 to $126,000*
|
$1,500 minus 3cents for every dollar of the amount above $90,000
|
Note: As with previous income years, if your taxable income is $126,000 or more, you will not receive the LMITO.
|
| |
|
LAMITO – 2018/2019 TO 2021/2021 (as amended)
|
|
|
The Low-and Middle-Income Tax Offset (LAMITO) is in addition to the Low-Income Tax offset (LITO).
Applicable tax offset
|
If taxable income is
|
$255
|
0 to $37,000
|
$255 to $1080
|
$37,001 to $48,000 **
|
$1,080
|
$48,001 to $90,000
|
$1,080 to Nil
|
$90,001 to $126,000 ***
|
** The $255 base offset is increased by 7.5% for every dollar of taxable income above $37,000 up to $48,000.
*** The $1,080 offset is reduced by 3% for every dollar of taxable income above $90,000.
|
| |
|
LITO - 2012/2013 to 2019/2020
|
|
|
|
Maximum tax offset
|
* Maximum offset applies if taxable income equal to or less than:
|
No offset if taxable income exceeds:
|
|
$445
|
$37,000
|
$66,667
|
* $445 offset is reduced by 1.5 cents for every dollar of taxable income above $37,000.
From 1 July 2011, minors are no longer able to access the Low Income Tax Offset (LITO) to reduce tax payable on unearned income, such as dividends, interest and rent.
This measure does not impact income earned by minors from work. Unearned income of minors, who are orphans or disabled, and compensation payments and inheritances received by minors, are also not impacted.
|
| |
|
2016/2017 - The real tax rates after applying LITO and the Medicare Levy
|
|
|
| Taxable |
Tax & |
|
Marginal |
|
|
|
|
| Income |
Medicare |
Next |
Tax Rate |
Reason |
|
|
|
| $0 |
$0 |
$18,200 |
0% |
LITO kicks in after $18,200 |
|
| $18,200 |
$0 |
$3,455 |
0% |
19% Marginal Tax Rate starts at $18,200 |
| $20,542 |
$0 |
$1,113 |
19.0% |
LITO eliminates any tax |
|
| $21,655 |
$211 |
$5,414 |
29.0% |
10% Medicare Levy Rate starts at $21,655 |
| $27,069 |
$1,781 |
$9,931 |
21.0% |
2% Medicare Levy Rate starts at $27,069 |
| $37,000 |
$3,867 |
$0 |
21.0% |
LITO maximum offset reduces after $37,000 |
| $37,000 |
$3,867 |
$29,667 |
36.0% |
32.5% Marginal Tax Rate starts at $37,000 |
| $66,667 |
$14,547 |
$20,333 |
34.5% |
LITO cuts out at $66,667 |
|
| $87,000 |
$21,562 |
$93,000 |
39.0% |
37% Marginal Tax Rate starts at $87,000 |
|
|
|
|
|
|
|
|
| The Marginal Tax Rate between $18,200 and $37,000 is 20.6% |
|
|
| The Marginal Tax Rate between $20,542 and $37,000 is 23.5% |
|
|
| The Marginal Tax Rate between $37,000 and $87,000 is 35.4% |
|
|
|
|
|
|
|
|
|
|
| The marginal tax rates above includes the Medicare Levy , if applicable. |
|
| The excessive marginal tax rates are caused by the interaction of 2 thresholds |
| Medicare Levy and Low income tax offset (LITO). |
|
|
|
|
|
|
|
|
|
|
|
| Taxpayers should consider other available marginal tax rates. |
|
|
|
|
|
|
|
|
|
|
| The above table assumes that the taxpayer is single and not entitled to any other offsets |
| and that they have adequate private health insurance to avoid the Medicare Surcharge |
|
| |
|
2015/2016 - The real tax rates after applying LITO and the Medicare Levy
|
|
|
| Taxable |
Tax & |
|
Marginal |
|
|
|
|
| Income |
Medicare |
Next |
Tax Rate |
Reason |
|
|
|
| $0 |
$0 |
$18,200 |
0% |
LITO kicks in after $18,200 |
|
| $18,200 |
$0 |
$3,135 |
0% |
19% Marginal Tax Rate starts at $18,200 |
| $20,542 |
$0 |
$793 |
19.0% |
LITO eliminates any tax |
|
| $21,335 |
$151 |
$5,334 |
29.0% |
10% Medicare Levy Rate starts at $21,335 |
| $26,669 |
$1,697 |
$10,331 |
21.0% |
2% Medicare Levy Rate starts at $26,669 |
| $37,000 |
$3,867 |
$0 |
21.0% |
LITO maximum offset reduces after $37,000 |
| $37,000 |
$3,867 |
$29,667 |
36.0% |
32.5% Marginal Tax Rate starts at $37,000 |
| $66,667 |
$14,547 |
$13,333 |
34.5% |
LITO cuts out at $66,667 |
|
| $80,000 |
$19,147 |
$100,000 |
39.0% |
37% Marginal Tax Rate starts at $80,000 |
|
|
|
|
|
|
|
|
| The Marginal Tax Rate between $18,200 and $37,000 is 20.6% |
|
|
| The Marginal Tax Rate between $20,542 and $37,000 is 23.5% |
|
|
| The Marginal Tax Rate between $37,000 and $80,000 is 35.5% |
|
|
|
|
|
|
|
|
|
|
| The marginal tax rates above includes the Medicare Levy , if applicable. |
|
| The excessive marginal tax rates are caused by the interaction of 2 thresholds |
| Medicare Levy and Low income tax offset (LITO). |
|
|
|
|
|
|
|
|
|
|
|
| Taxpayers should consider other available marginal tax rates. |
|
|
|
|
|
|
|
|
|
|
| The above table assumes that the taxpayer is single and not entitled to any other offsets |
| and that they have adequate private health insurance to avoid the Medicare Surcharge |
|
| |
|
2014/2015 - The real tax rates after applying LITO and the Medicare Levy
|
|
|
| Taxable |
Tax & |
|
Marginal |
|
|
|
|
| Income |
Medicare |
Next |
Tax Rate |
Reason |
|
|
|
| $0 |
$0 |
$18,200 |
0% |
LITO kicks in after $18,200 |
|
| $18,200 |
$0 |
$2,696 |
2.5% |
19% Marginal Tax Rate starts at $18,200 |
| $20,542 |
$0 |
$354 |
19.0% |
LITO eliminates any tax |
|
| $20,896 |
$67 |
$5,224 |
29.0% |
10% Medicare Levy Rate starts at $20,896 |
| $26,120 |
$1,582 |
$10,880 |
21.0% |
2% Medicare Levy Rate starts at $26,120 |
| $37,000 |
$3,867 |
$0 |
21.0% |
LITO maximum offset reduces after $37,000 |
| $37,000 |
$3,867 |
$29,667 |
36.0% |
32.5% Marginal Tax Rate starts at $37,000 |
| $66,667 |
$14,547 |
$13,333 |
34.5% |
LITO cuts out at $66,667 |
|
| $80,000 |
$19,147 |
$100,000 |
39.0% |
37% Marginal Tax Rate starts at $80,000 |
|
|
|
|
|
|
|
|
| The Marginal Tax Rate between $18,200 and $37,000 is 20.6% |
|
|
| The Marginal Tax Rate between $20,542 and $37,000 is 23.5% |
|
|
| The Marginal Tax Rate between $37,000 and $80,000 is 35.5% |
|
|
|
|
|
|
|
|
|
|
| The marginal tax rates above includes the Medicare Levy , if applicable. |
|
| The excessive marginal tax rates are caused by the interaction of 2 thresholds |
| Medicare Levy and Low income tax offset (LITO). |
|
|
|
|
|
|
|
|
|
|
|
| Taxpayers should consider other available marginal tax rates. |
|
|
|
|
|
|
|
|
|
|
| The above table assumes that the taxpayer is single and not entitled to any other offsets |
| and that they have adequate private health insurance to avoid the Medicare Surcharge |
|
| |
|
2013/2014 and 2012/2013 - The real tax rates after applying the LITO and Medicare Levy
|
|
|
|
|
|
|
|
|
|
|
|
| Taxable |
Tax & |
|
Marginal |
|
|
|
|
|
| Income |
Medicare |
Next |
Tax Rate |
Reason |
|
|
|
|
|
$0
|
$0
|
$18,200
|
0%
|
LITO kicks in after $18,200 |
|
|
|
$18,200
|
$0
|
$2,342
|
0.0%
|
19% Marginal Tax Rate starts at $18,200 |
|
|
$20,542
|
$0
|
$3,625
|
29.0%
|
10% Medicare Levy Rate starts at $20,542 |
|
|
$24,167
|
$1,051
|
$12,833
|
20.5%
|
1.5% Medicare Levy Rate starts at $24,167 |
|
|
$37,000
|
$3,682
|
$0
|
20.5%
|
LITO maximum offset reduces after $37,000 |
|
|
$37,000
|
$3,682
|
$29,667
|
35.5%
|
32.5% Marginal Tax Rate starts at $37,000 |
|
|
$66,667
|
$14,214
|
$13,333
|
34.0%
|
LITO cuts out at $66,667 |
|
|
|
$80,000
|
$18,747
|
$100,000
|
38.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| The Marginal Tax Rate between $18,200 and $37,000 is 19.6% |
|
|
|
| The Marginal Tax Rate between $20,542 and $37,000 is 22.4% |
|
|
|
| The Marginal Tax Rate between $37,000 and $80,000 is 35.0% |
|
|
|
|
|
|
|
|
|
|
|
|
| The marginal tax rates above includes the Medicare Levy , if applicable. |
|
|
| The excessive marginal tax rates are caused by the interaction of 2 thresholds |
|
| Medicare Levy and Low income tax offset (LITO). |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Taxpayers should consider other available marginal tax rates. |
|
|
|
|
|
|
|
|
|
|
|
|
| The above table assumes that the taxpayer is single and not entitled to any other offsets |
|
| and (if they have taxable income above $84,000 for 2012/2013 and $88,000 for 2013/2014) |
| that they have adequate private health insurance to avoid the Medicare Surcharge |
|
|
|
|
|
|
|
|
|
|
|
| |
|
2011/2012
|
|
|
|
Maximum tax offset
|
* Maximum offset applies if taxable income equal to or less than:
|
No offset if taxable income exceeds:
|
|
$1,500
|
$30,000
|
$67,500
|
* $1,500 offset is reduced by 4 cents for every dollar of taxable income above $30,000.
Taxpayers eligible for the full offset do not pay tax until their annual income exceeds $16,000.
From 1 July 2011, minors are no longer able to access the Low Income Tax Offset (LITO) to reduce tax payable on unearned income, such as dividends, interest and rent.
This measure does not impact income earned by minors from work. Unearned income of minors, who are orphans or disabled, and compensation payments and inheritances received by minors, are also not impacted.
|
| |
|
2011/2012 -The real tax rates after applying LITO and the Levies
|
|
|
| |
|
|
|
|
|
|
|
| Taxable |
Tax & |
|
Marginal |
|
|
|
|
| Income |
Medicare |
Next |
Tax Rate |
Reason |
|
|
|
| $0 |
$0 |
$16,000 |
0% |
LITO kicks in after $6,000 |
|
| $16,000 |
$0 |
$3,404 |
15.0% |
15% Marginal Tax Rate starts at $16,000 |
| $19,404 |
$511 |
$3,424 |
25.0% |
10% Medicare Levy Rate starts at $19,404 |
| $22,828 |
$1,367 |
$7,172 |
16.5% |
1.5% Medicare Levy Rate starts at $22,828 |
| $30,000 |
$2,550 |
$7,000 |
20.5% |
LITO maximum offset reduces after $30,000 |
| $37,000 |
$3,985 |
$13,000 |
35.8% |
31.5% Marginal Tax Rate starts at $37,000 |
| $50,000 |
$8,600 |
$17,500 |
34.3% |
0.5% Flood Levy starts at $50,000 |
| $67,500 |
$14,900 |
$12,500 |
32.0% |
LITO cuts out at $67,500 |
|
| $80,000 |
$18,900 |
$20,000 |
39.0% |
37% Marginal Tax Rate starts at $80,000 |
| $100,000 |
$26,700 |
$80,000 |
39.5% |
1.0% Flood Levy starts at $100,000 |
| |
|
|
|
|
|
|
|
| The Marginal Tax Rate between $16,000 and $22,828 is 20% |
|
|
| The Marginal Tax Rate between $16,000 and $30,000 is 18.2% |
|
|
| The Marginal Tax Rate between $16,000 and $37,000 is 19.0% |
|
|
| The Marginal Tax Rate between $37,000 and $80,000 is 34.7% |
|
|
| The Marginal Tax Rate between $50,000 and $80,000 is 34.3% |
|
|
| |
|
|
|
|
|
|
|
| The marginal tax rates above include the Medicare and Flood Levy , if applicable. |
| The excessive marginal tax rates are caused by the interaction of 3 thresholds |
| Medicare Levy, Flood Levy and Low income tax offset (LITO). |
|
|
| |
|
|
|
|
|
|
|
| Taxpayers should consider other available marginal tax rates. |
|
|
| |
|
|
|
|
|
|
|
| The above table assumes that the taxpayer is single and not entitled to any other offsets |
| and (if they have taxable income above $80,000) that they have adequate private |
| health insurance to avoid the Medicare Surcharge |
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
2010/2011
|
|
|
|
Maximum tax offset |
* Maximum offset applies if taxable income equal to or less than: |
No offset if taxable income exceeds: |
|
$1,500 |
$30,000 |
$67,500 |
* $1,500 offset is reduced by 4 cents for every dollar of taxable income above $30,000.
Taxpayers eligible for the full offset do not pay tax until their annual income exceeds $16,000.
|
| |
|
2010/2011 - The real tax rates after applying LITO and Medicare Levy
|
|
|
| |
|
|
|
|
|
|
|
| Taxable |
Tax & |
|
Marginal |
|
|
|
|
| Income |
Medicare |
Next |
Tax Rate |
Reason |
|
|
|
| $0 |
$0 |
$16,000 |
0% |
LITO kicks in after $6,000 |
|
| $16,000 |
$0 |
$2,839 |
15.0% |
15% Marginal Tax Rate starts at $16,000 |
| $18,839 |
$426 |
$3,324 |
25.0% |
10% Medicare Levy Rate starts at $18,839 |
| $22,163 |
$1,257 |
$7,837 |
16.5% |
1.5% Medicare Levy Rate starts at $22,163 |
| $30,000 |
$2,550 |
$7,000 |
20.5% |
LITO maximum offset reduces after $30,000 |
| $37,000 |
$3,985 |
$30,500 |
35.5% |
31.5% Marginal Tax Rate starts at $37,000 |
| $67,500 |
$14,813 |
$12,500 |
31.5% |
LITO cuts out at $67,500 |
|
| $80,000 |
$18,750 |
$100,000 |
38.5% |
|
|
|
|
| |
|
|
|
|
|
|
|
| The Marginal Tax Rate between $16,000 and $22,163 is 20.4% |
|
|
| The Marginal Tax Rate between $16,000 and $30,000 is 18.2% |
|
|
| The Marginal Tax Rate between $16,000 and $37,000 is 19.0% |
|
|
| The Marginal Tax Rate between $37,000 and $80,000 is 34.3% |
|
|
| |
|
|
|
|
|
|
|
| The marginal tax rates above include Medicare Levy, if applicable. |
|
|
| The excessive marginal tax rates are caused by the interaction of 2 thresholds |
| Medicare Levy and Low income tax offset (LITO). |
|
|
|
| |
|
|
|
|
|
|
|
| Taxpayers should consider other available marginal tax rates. |
|
|
| |
|
|
|
|
|
|
|
| The above table assumes that the taxpayer is single and not entitled to any other offsets |
| and (if they have taxable income above $77,000) that they have adequate private |
| health insurance |
|
|
|
|
|
|
|
| |
|
2009/2010
|
|
|
|
Maximum tax offset
|
* Maximum offset applies if taxable income equal to or less than:
|
No offset if taxable income exceeds:
|
|
$1,350
|
$30,000
|
$63,750
|
* $1,350 offset is reduced by 4 cents for every dollar of taxable income above $30,000.
Taxpayers eligible for the full offset do not pay tax until their annual income exceeds $15,000.
|
| |
|
2009/2010 - The real tax rates after applying LITO and Medicare Levy
|
|
|
| |
|
|
|
|
|
|
|
| Taxable |
Tax & |
|
Marginal |
|
|
|
|
| Income |
Medicare |
Next |
Tax Rate |
Reason |
|
|
|
| $0 |
$0 |
$15,000 |
0% |
LITO starts at $6,000 |
|
| $15,000 |
$0 |
$3,488 |
15.0% |
15% Marginal Tax Rate starts at $15,000 |
| $18,488 |
$523 |
$3,262 |
25.0% |
10% Medicare Levy Rate kicks in at $18,488 |
| $21,750 |
$1,339 |
$8,250 |
16.5% |
1.5% Medicare Levy Rate kicks in at $21,750 |
| $30,000 |
$2,700 |
$5,000 |
20.5% |
LITO maximum offset reduces after $30,000 |
| $35,000 |
$3,725 |
$28,750 |
35.5% |
31.5% Marginal Tax Rate kicks in after $35,000 |
| $63,750 |
$13,931 |
$16,250 |
31.5% |
LITO cuts out at $63,750 |
|
| $80,000 |
$19,050 |
$100,000 |
39.5% |
|
|
|
|
| |
|
|
|
|
|
|
|
| The Marginal Tax Rate between $15,000 and $21,750 is 19.837% |
|
|
| The Marginal Tax Rate between $15,000 and $30,000 is 18.0% |
|
|
| The Marginal Tax Rate between $15,000 and $35,000 is 18.625% |
|
|
| The Marginal Tax Rate between $35,000 and $80,000 is 34.055% |
|
|
| |
|
|
|
|
|
|
|
| The marginal tax rates above include Medicare Levy, if applicable. |
|
|
| The excessive marginal tax rates are caused by the interaction of 2 thresholds |
| Medicare Levy and Low income tax offset (LITO). |
|
|
|
| |
|
|
|
|
|
|
|
| Taxpayers should consider other available marginal tax rates. |
|
|
| |
|
|
|
|
|
|
|
| The above table assumes that the taxpayer is single and not entitled to any other offsets |
| and (if they have taxable income above $73,000) that they have adequate private |
| health insurance |
|
|
|
|
|
|
|
| |
|
2008/2009
|
|
|
|
Maximum tax offset
|
* Maximum offset applies if taxable income equal to or less than:
|
No offset if taxable income exceeds:
|
|
$1,200
|
$30,000
|
$60,000
|
* $1,200 offset is reduced by 4 cents for every dollar of taxable income above $30,000.
Taxpayers eligible for the full offset do not pay tax until their annual income exceeds $14,000.
**********
| The real marginal tax rates after applying LITO and the Medicare Levy |
| |
|
|
|
|
|
|
|
|
| This table applies to the tax year 2008/2009 |
|
|
|
| |
|
|
|
|
|
|
|
|
| Taxable |
Tax & |
|
Marginal |
|
|
|
|
|
| Income |
Medicare |
Next |
Tax Rate |
Reason |
|
|
|
|
| $0 |
$0 |
$14,000 |
0% |
LITO kicks in after $6,000 |
|
|
| $14,000 |
$0 |
$3,794 |
15.0% |
15% Marginal Tax Rate kicks in after $14,000 |
| $17,794 |
$569 |
$3,140 |
25.0% |
10% Medicare Levy Rate kicks in at $17,794 |
| $20,934 |
$1,354 |
$9,066 |
16.5% |
1.5% Medicare Levy Rate kicks in at $20,934 |
| $30,000 |
$2,850 |
$4,000 |
20.5% |
LITO maximum offset starts to reduce after $30,000 |
| $34,000 |
$3,670 |
$26,000 |
35.5% |
31.5% Marginal Tax Rate kicks in after $34,000 |
| $60,000 |
$12,900 |
$20,000 |
31.5% |
LITO cuts out at $60,000 |
|
|
| $80,000 |
$19,200 |
$100,000 |
41.5% |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| The marginal tax rates above include Medicare Levy, if applicable. |
|
|
| The excessive marginal tax rates are caused by the interaction of 2 thresholds |
|
| Medicare Levy and Low income tax offset. |
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Taxpayers should consider other available marginal tax rates. |
|
|
|
| |
|
|
|
|
|
|
|
|
| The above table assumes that the taxpayer is single and not entitled to any other offsets |
| and (if they have taxable income above $70,000) that they have adequate private health insurance |
| |
|
|
|
|
|
|
|
|
|
| |
|
2007/2008
|
|
|
|
Maximum tax offset |
* Maximum offset applies if taxable income equal to or less than: |
No offset if taxable income exceeds: |
|
$750 |
$30,000 |
$48,750 |
* $750 offset is reduced by 4 cents for every dollar of taxable income above $30,000.
Taxpayers eligible for the full offset do not pay tax until their annual income exceeds $11,000.
|
| |
|
2006/2007
|
|
|
|
Maximum tax offset |
* Maximum offset applies if taxable income equal to or less than: |
No offset if taxable income exceeds: |
|
$600 |
$25,000 |
$40,000 |
* $600 offset is reduced by 4 cents for every dollar of taxable income above $25,000.
Taxpayers eligible for the full offset do not pay tax until their annual income exceeds $10,000.
|
| |
|
2005/2006 & before
|
|
|
2005/2006
|
Maximum tax offset |
* Maximum offset applies if taxable income equal to or less than: |
No offset if taxable income exceeds: |
|
$235 |
$21,600 |
$27,475 |
* $235 offset is reduced by 4 cents for every dollar of taxable income above $21,600.
Taxpayers eligible for the full offset do not pay tax until their annual income exceeds $7,567.
2004/2005
|
Maximum tax offset |
* Maximum offset applies if taxable income equal to or less than: |
No offset if taxable income exceeds: |
|
$235 |
$21,600 |
$27,475 |
* $235 offset is reduced by 4 cents for every dollar of taxable income above $21,600.
Taxpayers eligible for the full offset do not pay tax until their annual income exceeds $7,380.
|
|
|
|
This page was last edited on 6 April 2022
Fdbco.au - An Online Quick Reference Library for Tax Agents and Financial Planners
|
|
|