LOW AND MIDDLE INCOME TAX OFFSET – WILL I RECEIVE $1,080?

LOW AND MIDDLE INCOME TAX OFFSET – WILL I RECEIVE $1,080?

Changes to the low and middle income tax offset announced in Budget 2019–20 are now law.

The amount of offset you may be entitled to, and the amount of any refund, will differ for everyone depending on individual circumstances such as income level and how much tax you paid throughout the year. 

WILL I RECEIVE $1,080?

If your taxable income is;

  • Less than $37,000, your offset entitlement will be $255.
  • More than $37,000 and less an $48,000, your offset entitlement will be $255 plus 7.5% of the excess above $37,000.
  • More than $48,000 but less than $90,000, your offset entitlement will be $1,080.
  • More than $90,000 but less than $126,000 your offset entitlement will be $1,080, less 3% of the excess above $90,000.

This offset is a non refundable offset which means that it will reduce the tax you have to pay on your income, but only until your tax payable is Nil.  Any excess offset will be lost.

If you have not paid any tax for the year, you will not receive any money.

Please click Here for more information and examples

 

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