Good news! The Australian government has just announced a bigger tax offset for this year’s tax refund. If your taxable income falls below $126,000 you will be eligible for some of the low- and middle-income tax offset (LMITO).
See how much you will get below:
|$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 offset is $1,080 but that does not mean you will get an extra $1,080. Take for example, Andy’s taxable income is $50,000. His taxable income is above $48,000 thus, he will be entitled to a tax offset of $1,080.
I HAVE ALREADY SUBMITTED MY INCOME TAX
No stress. If you have already lodged your tax return, just grab a coffee and relax – the ATO will automatically apply the tax offset on your lodgement for you. You may be getting more for your tax refund or paying less on your tax payable.
WITH THIS NEW TAX OFFSET IN PLACE, WHAT DO YOU NEED TO DO?
The answer is nothing. If you are lodging with OneClickTax, it will automatically calculate your tax refund including the new tax cut. We partner with the ATO to help you save time in lodging as we pre-fill as much data as possible, so you most likely won’t need your PAYG statement!
If you want to lodge your tax return online click here or you can call us at 1300 707 117.
You can read more about the new tax offset on the ATO website, here!