2 August 2019
You will be entitled to some of the low and middle income tax offset if your individual taxable income is less than $126,000.
You don't need to do anything different to claim the low and middle income tax offset - just lodge your individual tax return and we’ll automatically process any offsets you are entitled to.
Employers don’t need to change how much they withhold.
This offset is separate from the Small business income tax offset which can reduce the tax you pay by up to $1,000. We work this out for you from information you report in your tax return.
An offset is not an automatic refund
It’s important to remember that an offset is not a refund. The offset reduces the amount of tax you pay on your taxable income. Depending on how much tax you paid throughout the year, the offset may result in a larger refund or smaller debt.
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Follow these tips to get on the front foot this tax time.
Check what to report and include in your tax return.
Don't forget to claim a deduction for assets that cost less than the threshold.