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Low income tax offset

Check if you are eligible for the low income tax offset (LITO).

Published 15 June 2025

Eligibility for the tax offset

You may be eligible for the low income tax offset (LITO) if you earn up to $66,667.

To be eligible, you need to:

The amount of LITO you receive will depend on your taxable income. If you earned:

  • $37,500 or less, you will get the maximum offset of $700
  • between $37,501 and $45,000, you will get $700 minus 5 cents for every $1 above $37,500
  • between $45,001 and $66,667, you will get $325 minus 1.5 cents for every $1 above $45,000.

We will work out your offset and reduce your tax payable by this amount.

Receiving the tax offset

You don't need to do anything to claim the LITO except lodge your tax return. We work out the offset after you lodge.

You can see the tax offset amount on your notice of assessment at Less non-refundable tax offsets.

This offset reduces the tax you need to pay and can only reduce your tax payable to $0. It is not a separate payment. Any unused amount can't be refunded.

QC105020