The Low and Middle Income Tax Offset (LMITO) is a tax offset introduced as part of the Budget 2018 measures to revise the personal income tax rates.
It applies in the years from 1 July 2018 to 30 June 2022, and is in addition to the Low Income Tax Offset.
The LMITO base amount is to be increased from $200 to $255; the maximum amount will increase from $530 to $1080. Revised taxable income tests are also to be applied.
LMITO from 1 July 2018
|up to $37,000||$255|
|$37,001 to $48,000||$255 plus 7.5 cents for each dollar over $37,000|
|$48,001 to $90,000||$1,080|
|$90,001 to $126,000||$1,080 less 3 cents for each dollar over $90,000|
The LMITO applies in addition to the Low Income Tax Offset (LITO). The offset is paid in arrears, i.e. applied on an annual basis as part of the annual income tax assessment calculation.
From 1 July 2022 both the LMITO and LITO will be replaced by a single low income tax offset (a new LITO). The calculation formula for the new offset is set out here.
This page was last modified 2019-07-04