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.
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 continue to be 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.
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 working||Entitlement to MAWTO|
|Less than $10,000||5% 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 above||nil|
- Seniors and Pensioners Tax Offset
- Access to Superannuation
- Account Based Pensions
- Aged Pension entitlements
This page was last modified on 21 August 2017