Low and Middle Income Tax Offset (LMITO)

Low and Middle Income Tax Offset (LMITO) amount and availability have been changed for 2019 financial year.

Please note the following guidance and contact us if you have any questions:

• LMITO is available to resident individuals for 2019 year

• Amount of offset determined by 2019 taxable income derived

• $200 offset if taxable income below $37,000;

• $200 offset increases by 3 cents per dollar where taxable income between $37,000 and $48,000 up to $530;

• $530 offset where taxable income between 48,001 and $90,000; and

• $530 offset phases out at 1.5 cents per dollar where taxable income between $90,001 and $125,333

• LMITO available to trustee if taxed on behalf of a resident beneficiary under a legal disability per section 98 of the ITAA (1936) provided the share of net income does not exceed $125,333.

Please note people on visa subclass 417 (Working Holiday) and 462 (Work and Holiday, such as backpackers) are not entitled to this offset.  ATO will amend the tax returns automatically if you have mistakenly claimed LMITO while you are in Australia for a working holiday.