Low income earners
You may be eligible for a tax offset if you are a low-income earner and you are an Australian resident for income tax purposes.
You don't have to claim this offset. We will work it out for you when you lodge your tax return. The offset can only reduce the amount of tax you pay to zero and it does not reduce your Medicare levy.
If your taxable income is less than $66,667, you will get the low income tax offset. The maximum tax offset of $445 applies if your taxable income is $37,000 or less. This amount is reduced by 1.5 cents for each dollar over $37,000.
If you are under 18 as at 30 June of the income year and you have unearned income, your low income tax offset cannot reduce the tax payable on this income.
You may be eligible for a tax offset if you are a low-income earner - for example, if you only work part time. You don't have to claim this offset - we will work it out for you when you lodge your tax return.