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The Mature Age Worker Tax Offset (“MAWTO”)

.. is set at a maximum of $500 for Australian resident workers over the age of 55 years at 30 June.

MAWTO abolished from 1 July 2014

As proposed in the 2014 Federal Budget, the mature age worker tax offset (MAWTO) is no longer available with effect from 1 July 2014. Amending legislation was passed by parliament in March 2015.

It was announced that the savings from abolition of MAWTO would be applied to a seniors employment program called “Restart”  – which from 1 July 2014 provides up to $10,000 to employers who hire a job seeker aged 50 or more who has been on income support for at least six months. 

Under changes announced in the 2015-16 Budget, from 1 November 2015 the $10,000 was payable to employers over 12 months (previously 2 years). The program has since been re-badged.

See Workforce Australia Services Wage Subsidy

From 1 July 2012 MAWTO is unavailable for taxpayers born on or after 1 July 1957. Taxpayers who aged 55 years or older in 2011-12 were eligible until 30 June 2014.

MAWTO is separate from the Seniors and Pensioners Tax Offset (“SAPTO“) which has its own eligibility requirements.

Income Test -“Net Income From Working”

In addition to the age qualifications, eligibility for MAWTO is subject to an income test, based on “net income earned from working”.

This is net income plus other items under an extended meaning.

Income from working

‘Net income from working’ is the sum of:

  • income that is mainly a reward for your personal effort or skills less any related deductions
  • income from a business that you carry on, less any related deductions
  • reportable fringe benefits
  • reportable employer superannuation contributions
  • assessable farm management repayments

See also the tax return worksheet here.

Full entitlement is achieved when the net income from working reaches $10,000, with a phase-in below this level. The entitlement cuts out at net income of $63,000.

As an offset, the MAWTO is a subtraction from tax payable, but any unused portion is not refunded (nor is it transferable).

The calculation table for mature age worker tax offset:

Net income from workingEntitlement to MAWTO
Less than $10,0005% of net income from working
$10,000 to $53,000$500
$53,001 to $62,999$500 – [5% x (net income from working – $53,000)]
$63,000 and abovenil

See also

This page was last modified 2023-06-06