“LITO” calculation formulae for the tax years 2010 to 2018
LITO is an “offset”, which means it is an amount subtracted from your tax payable. If the calculated LITO offset is greater than your tax payable, the excess is not refundable, and it also can’t be used to offset Medicare Levy.
The LITO is for lower income earners, and does not have to be specifically claimed, because the Tax Office automatically calculates your entitlement in your tax assessment. (The LITO calculation is provided for in the spreadsheet annual tax calculator).
LITO calculation table from 1 July 2015 and following
| Taxable Income | LITO Formula 2015-16 – after amendment * |
| $0 – $37,000 | $445 |
| $37,001 – $66,667 | $445 – [(taxable income – $37,000) x 1.5%] |
| $66,667 + | Nil |
* A previously legislated LITO offset value of $300 (with a withdrawal rate of 1 cent per dollar of income over $37,000 cutting out at $67,000) was to take effect from 1 July 2015 under measures originally introduced with the Carbon Tax. This has since been repealed.
2012-13, 2013-14 and 2014-15
With effect from 1 July 2012 the full offset is $445, with a withdrawal rate of 1.5 cents per dollar of income over $37,000, such that it cuts out at $66,667.
LITO calculation table for periods 1 July 2012 to 30 June 2015
| Taxable Income | LITO Formula 2012-13 to 2014-15 |
| $0 – $37,000 | $445 |
| $37,001 – $66,667 | $445 – [(taxable income – $37,000) x 1.5%] |
| $66,667 + | Nil |
2011-2012 Low Income Tax Offset
For 2011-12 the full offset is $1,500, with a withdrawal rate of 4 cents per dollar of income over $30,000, such that it cuts out at $67,500.
LITO calculation table 1 July 2011 to 30 June 2012
| Taxable Income | LITO Offset 2011-12 |
| 0 – $30,000 | $1,500 |
| $30,001 – $67,500 | $1,500 – [(taxable income – $30,000) x 4%] |
| $67,500 + | Nil |
2010-2011 Low Income Tax Offset
From 1 July 2010 the full offset is $1,500, with a withdrawal rate of 4 cents per dollar of income over $30,000, such that it cuts out at $67,500.
LITO calculation table 1 July 2010 to 30 June 2011
| Taxable Income | LITO Offset 2010-11 |
| 0 – $30,000 | $1,500 |
| $30,001 – $67,500 | $1,500 – [(taxable income – $30,000) x 4%] |
| $67,500 + | Nil |
2009-2010 Low Income Tax Offset
For 2009-10 the full offset is $1,350 with a withdrawal rate of 4 cents per dollar of income over $30,000, such that it cuts out at $63,750.
LITO calculation table 1 July 2009 to 30 June 2010
| Taxable Income | LITO Offset 2009-10 |
| 0 – $30,000 | $1,350 |
| $30,001 – $63,750 | $1,350 – [(taxable income – $30,000) x 4%] |
| $63,750 + | Nil |
See also
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This page was last modified on 10 May 2017
