Low and middle income tax offset now law

BREAKING NEWS

From the 2018–19 income year:

  • The low and middle income tax offset increases from a maximum amount of $530 to $1,080 per annum and the base amount increases from $200 to $255 per annum.

  • Taxpayers with a taxable income:

    • of $37,000 or below can now receive a low and middle income tax offset of up to $255

    • above $37,000 and below $48,000 can now receive $255, plus an amount equal to 7.5% to the maximum offset of $1,080

    • above $48,000 and below $90,000 are now eligible for the maximum low and middle income tax offset of $1,080

    • above $90,000 but is no more than $126,000 are now eligible for a low and middle income tax offset of $1,080, less an amount equal to three per cent of the excess.

If your tax return has already been lodged, you will receive an adjustment to your refund if you are eligible for any additional tax offsets.

This increase has been implemented in order to boost growth in the midst of a major economic downturn.