Tax offsets – sometimes referred to as rebates – are not the same as tax deductions. Offsets directly reduce the amount of tax you must pay. Each dollar of tax offset reduces your tax payable by a dollar regardless of your taxable income.
Mature age workers, seniors and pensioners may be eligible for tax offsets. If you are a low income earner, you may be eligible for an offset and, if your medical expenses pass the threshold limit, you may be eligible for the medical expenses tax offset too. You may also be eligible for an offset if you receive income from a superannuation income stream.
Seniors and pensioners tax offset
If you have reached the age pension age, the seniors and pensioners tax offset lets you earn more money before you have to pay tax or the Medicare levy. There are a range of eligibility conditions which relate to age, income, and eligibility for Australian government pensions or allowances.
Low income offset
You may be eligible for a tax offset if you are a low income earner. You don't have to claim this offset – we will work it out for you when you lodge your tax return – but our low income tax offset calculator will help you determine whether or not you are eligible for an offset.
Medical expenses tax offset
You may be eligible to claim a percentage of your net medical expenses over the set threshold. There is no upper limit to the amount you can claim, but the threshold is indexed and changes every year. You will only be eligible to claim the offset for certain expenses.
Since 1 July 2012, your income level may affect your eligibility and entitlements for this offset.
Australian superannuation income stream tax offset
If you have income from an Australian superannuation income stream, you may be entitled to a tax offset if you are receiving a disability superannuation benefit or death benefit income stream; or you are 55 years or older.
Several tax offsets are available to mature-age workers, seniors and pensioners to help reduce the amount of tax payable. Eligibility conditions apply.