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  • Tax offsets

    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.

    Seniors and retirees 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 total net medical expenses for disability aids, attendant care or aged care 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 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.

    Total net medical expenses for disability aids, attendant care or aged care tax offset

    You may be eligible to claim a percentage of your net medical expenses relating to disability aids, attendant care or aged care.

    This tax offset is income tested. The percentage of net expenses is determined by your adjusted taxable income (ATI) and family status.

    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.

    See also:

    Last modified: 18 Apr 2017QC 31877