Mature age worker tax offset - overview

What is the mature age worker tax offset?

The mature age worker tax offset (MAWTO) aims to encourage and reward mature age workers who stay in the workforce.

The maximum tax offset is $500.

To be eligible for the mature age worker tax offset in 2011-12, all of the following must apply:

• you are an Australian resident for tax purposes
• you are 55 years old or more at the end of the income year
• you have received net income from working (within certain limits).

There is a new age eligibility requirement for tax time 2013 and future years. For the 2012-13 income year onwards, you must have been born before 1 July 1957 to qualify for the mature age worker tax offset. For more information, including the act and explanatory memorandum, refer to Mature age worker tax offset.

The mature age worker tax offset can only reduce your tax liability to nil. Any unused portions cannot be refunded or transferred to another taxpayer. This offset should not be confused with the senior Australians tax offset or the pensioner tax offset. Some people may be eligible for more than one of these.