The Low and Middle Income Tax Offset (LMITO) was available for individual taxpayers for the 2018-19 to 2021-22 income years provided they were Australian tax residents and had taxable income from $37,000 and up to $126,000.
For the 2021-22 income year, the LMITO entitled eligible taxpayers to reduce their tax payable by between $675 to $1,500.
The last year that the LMITO could be utilised was the 2021-22 income year. It has been replaced by the Low Income Tax Offset (LITO) starting from 1 July 2022. The LITO entitles eligible taxpayers with taxable income of up to $67,667 to an offset of up to $700.
For taxpayers who were originally eligible for the LMITO, they may see their tax refunds reduce by $675 to $1,500 for the 2022-23 income years and onwards.
The team at EMspire Advisory are trusted, qualified Chartered Accountants, tax agents, and small business accountants. We work closely with our clients to achieve the best possible outcomes. To find out more, please contact us!
Please note that this information is not specific and is general in nature and cannot be relied on as advice. Please contact us for advice specific to you and your circumstances.