Tax Offsets

Adjusted Taxable Income For Offsets CalculationsHealth Insurance Tax Offset
Beneficiary Tax OffsetLow and Middle Income Tax Offset (LMITO)
Delayed Income Tax Offset (income in arrears)Low Income Tax Offset (LITO)
Dependant Spouse OffsetMature Age Workers Tax Offset
Invalid and Carer Tax OffsetMedical Expenses Tax Offset
Education Tax Refund/RebateSenior Australians Tax Offset
Entrepreneurs Tax OffsetSmall Business Tax Discount (Offset)
Foreign Income Tax OffsetSpouse Super Contributions Tax Offset
Franking CreditsZone Tax Offset

Tax offsets are amounts subtracted directly from your tax payable. Tax offsets may also be referred to as tax rebates.

In contrast, a tax deduction is an amount subtracted from taxable income, which therefore only reduces your tax by your marginal tax rate percentage.

Each type of tax offset can potentially result in no tax being payable. Some tax offsets may be refunded  in cash (for example franking credits) if the offset value is higher than tax payable. (“refundable offsets“).

Most tax offsets however, are not refundable.


This page was last modified 2020-03-27