LOW AND MIDDLE INCOME TAX OFFSET ENDED 30 JUNE 2022

Why has my tax refund gone down … or disappeared?

A major reason your tax return outcome may change is that the low and middle income tax offset ended on 30 June 2022.

LMITO is not available for the 2022–23 income year and later income years.

You received LMITO for 2021–22 income year if your taxable income was less than $126,000 as per below:

Table: Low and middle income tax offset (LMITO) for 2021–22 income year

Taxable income                          Offset
$37,000 or less                              $675
From $37,001 to $48,000            $675 plus 7.5 cents 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 3 cents for every dollar above $90,000

Please refer to the ATO website link below for more details:

https://www.ato.gov.au/individuals/income-deductions-offsets-and-records/tax-offsets/low-and-middle-income-earner-tax-offsets/

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