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About tax offsets

Find out how tax offsets can reduce the tax you pay.

Last updated 25 April 2023

A tax offset (also sometimes known as a tax rebate) reduces the tax you pay on your taxable income (known as your tax payable).

The amount of tax offset you receive depends on:

  • your taxable income
  • the amount of tax you need to pay.

If you don't have any tax to pay, you don't receive any offset. Most offsets aren't refundable, which means they can't reduce your tax below zero. However, some (such as the private health insurance rebate) are refundable.

We work out some tax offsets automatically when you lodge your tax return. You need to claim others in the Offsets section of your tax return.

You can check your entitlement and amounts using our online calculators.

Media: How tax offsets work Link (Duration: 01:41)