TAX BLAST: INCREASE YOUR TAX REFUND NOW!

In the 2019 Federal Budget the coalition government proposed increasing the Low and Middle Income Tax Offset (LMITO) from the 2018/2019 financial year to provide immediate tax relief for individuals earning up to $126,000. This has now been legislated which means most Australians will pay less tax right now.

Under the changes, the reduction in tax provided by LMITO will increase from a maximum amount of $530 to $1,080 per year and the base amount will increase from $200 to $255 per year for the four financial years between 1 Jul 18 to 30 Jun 22.

This offset does not need to be claimed separately in tax returns. Rather it will automatically be processed and provided to you when you lodge their 2019 income tax return. Your eligibility for LMITO depends on your taxable income.

TAXABLE INCOME LIMTO
<$37,000 $255
$37,000 – $48,000 $255 plus 7.5% of the portion exceeds $37,000
$48,001 – $90,000 $1,080
$90,001 – $126,000 $1,080 less 3% of the portion exceeds $90,000

 

If your taxable income is between roughly $48,000 and $90,000 per year you will receive the full $1,080 offset, while for individuals with incomes of $90,000 to $126,000 the offset will taper off at a rate of 3 cents per dollar for every dollar over $90,000. Those who earn less than $37,000 will receive an offset of $255.

The LMITO helps low and middle income earners lower the tax they pay. It does not replace the current Low Income Tax Offset (LITO). However it can only be used to lower your tax payable to the ATO, it cannot be used to generate a tax refund (i.e. when you have $0 tax payable you can’t get the LMITO as a refund) or reduce your Medicare Levy.

Call us now on phone: 1 300 009 888 (07 3999 9751) to submit your tax return and pay less tax.

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