The Australian Government has now passed new law surrounding the Low and Middle Income Tax Offset. This is big news for small and middle income earners, however, there are many incorrect stories being circulated in the news and on the internet. We are here to set the record straight.
First of all, not everyone is entitled to this offset. As the name suggests, it is an offset, not a handout.
Secondly, you must have paid more than the offset amount in tax throughout the year, to be eligible.
Thirdly, not everyone gets the amount of $1,080.00 that is so widely broadcast. See below for the offset amount you will receive for the 2018/19 year, based on your income:
|Taxable income||Offset Amount|
|$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|
If you have any further queries about these offsets, or any other Australian Tax Law, feel free to contact our friendly team.